Cosmo Energy to Establish a New Company
February 9, 2016
Cosmo Energy Holdings Co., Ltd.
Cosmo Energy Holdings Co., Ltd. (hereinafter referred to as “Cosmo Energy”) announced that its Board of Directors today passed a resolution to establish a new company to operate a petroleum coke-fueled power generation business that utilizes the Yokkaichi Kasumi Power Plant owned by its wholly owned subsidiary, Cosmo Oil Co., Ltd.
1. Purpose of establishing the new company
With the full liberalization of the retail electricity market scheduled to begin in April of this year, Japan's power industry is expected to be able to supply energy more efficiently. The new company will work to ensure a more stable and efficient energy supply by making effective use of the power generation knowhow and expertise that the Cosmo Energy Group has built up to date through its Independent Power Production (IPP) business as well as management resources such as petroleum coke produced at Cosmo Oil's Sakai Refinery.
2. Corporate profile of the new company
| (1) Company name | Yokkaichi Kasumi Power Co., Ltd. (hereinafter referred to as “Yokkaichi Kasumi Power”) | |
|---|---|---|
| (2) Registered address | 1-1-1 Shibaura, Minato-ku, Tokyo | |
| (3) Name and title of representative | Masayoshi Noji Representative Director (planned) | |
| (4) Business activities |
| |
| (5) Paid-in capital | 10,500 million yen (including capital reserve) | |
| (6) Date established | February 19, 2016 (scheduled) | |
| (7) Major shareholders and shareholding ratio | Cosmo Energy 61% Partner (corporation) 39% | |
| (8) Relationship between Cosmo Energy and Yokkaichi Kasumi Power | Capital ties | Cosmo Energy holds a 61% stake in Yokkaichi Kasumi Power. |
| Personnel | Masayoshi Noji, Executive Officer of Cosmo Energy, also serves as Representative Director of Yokkaichi Kasumi Power. | |
| Business | There is no business relationship between Cosmo Energy and Yokkaichi Kasumi Power that should be disclosed. | |
3. Corporate profile of the joint venture partner
Details of the joint venture partner cannot be disclosed at this time since its Board of Directors has yet to make an official decision on whether to move forward, and no formal agreement on the joint venture has been signed.
4. Future prospects
The impact on Cosmo Energy's consolidated business performance for the fiscal year ending March 31, 2016 as a result of establishing the new company is expected to be limited.
End
<Reference>
1. Corporate profile of Cosmo Oil Co., Ltd.
| (1) Company name | Cosmo Oil Co., Ltd. |
|---|---|
| (2) Registered address | 1-1-1 Shibaura, Minato-ku, Tokyo |
| (3) Name and title of representative | Hisashi Kobayashi President and Representative Director |
| (4) Business activities | Integrated oil business |
| (5) Paid-in capital | 167,200 million yen |
| (6) Date established | April 1, 1986 |
| (7) Major shareholders and shareholding ratio | Cosmo Energy 100% |
2. Corporate profile of Cosmo Oil Co., Ltd. Yokkaichi Kasumi Power Plant (after modification work)
| (1) Registered address | Yokkaichi City, Mie Prefecture |
|---|---|
| (2) Power generation capacity (sending end) | 200,000kW |
| (3) Fuel | Petroleum coke and residual oil |
| (4) Power generation method | Boiler and steam turbine power generation |
(Contact details for inquiries)
Public Relations Group, Corporate Communication Dept., Group Corporate Planning Unit,
Cosmo Energy Holdings Co., Ltd.
TEL +81-3-3798-3101 FAX +81-3-3798-3841