In the next three years, Japan's third largest oil refiner, Cosmo Energy Holdings Co Ltd, will invest 420 billion yen $3.2 billion in green power and renewable energy, including 83 billion yen on wind power, while 40 billion yen will be used for next-generation energy, including 25 billion yen on SAF.
Domestic demand for petroleum products will fall 2 -- 3 per cent a year and the pace of gasoline demand drop will be accelerated by around 2030 due to the rapid penetration of electric vehicles, said Shigeru Yamada, senior executive officer.
Yamada, who will be president from April 1, said we are increasing our spending in green power and energy.
Cosmo intends to invest 280 billion yen in its mainstay oil business, including oil development and petrochemicals.
In the year to March 2026, Cosmo hopes to boost its recurring profit to 165 billion yen, excluding the impact of inventory valuation, up from an expected 140 billion yen for the current year.
The company has set a cumulative payout ratio of 60 per cent or more for the next three years, against 22 per cent in the past five years, and a minimum dividend of 200 yen per share to improve shareholder returns.
The move came after City Index Eleventh, a Japanese fund backed by veteran activist Yoshiaki Murakami, raised its stake in Cosmo to nearly 20 per cent by early January, asking the company to improve shareholder returns and spin off its renewable energy segment.
Yamada said that we believe that the value of our renewable energy unit could be maximized if it was within our group, which has already sales and power supply adjustment functions.