Japanese shipping group Mitsui O.S.K. Lines, Ltd. (MOL) has confirmed contact with an American investor. The Japanese shipowner will operate a floating LNG terminal (FSRU) in Gdańsk on behalf of GAZ-SYSTEM. The FSRU, with a capacity of 6.1 billion m³ per year, is scheduled to begin operations in 2028.

Mitsui O.S.K. Lines, Ltd. (MOL) operates a diversified fleet of approximately 935 vessels, according to its 2024/2025 annual report. The fleet includes car carriers, bulk carriers, crude oil tankers, and LNG tankers. Over 10,500 people work for the holding companies. Mitsui O.S.K. Lines (MOL) operates seven FSRU terminals. Its fleet of gas carriers comprises approximately 120 vessels.

MOL operates, among others, the MOL FSRU Bauhinia Spirit. It is one of the world’s largest FSRUs, equipped with tanks with a storage capacity of 1,000 m³. It is currently chartered for gas supplies to Hong Kong. MOL is currently implementing two FSRU projects. One terminal will be in Gdańsk, and the second FSRU is being constructed for Singapore. Both facilities are scheduled to be operational by 2028.

The shipowner officially confirmed the contact following media reports suggesting that Elliott Investment Management had acquired a stake in the company. It was suggested that the transaction was arranged with a “specific investor.” MOL stated its commitment to timely and accurate disclosure and the fair treatment of all shareholders and investors, in accordance with the Fair Disclosure Principles. Previous reports from investment market observers indicated that Elliott Investment Management was the investor interested in Mitsui O.S.K. Lines, Ltd. MOL’s full statement reads as follows: “Some media outlets have reported that Elliott Investment Management has acquired shares in Mitsui O.S.K. Lines, Ltd. According to the reports, the company has been contacted by a specific investor,” according to the Shipping Telegraph. MOL management informed shareholders that “the Company, in accordance with the Principle of Fair Disclosure and the principle of equal treatment of shareholders, is committed to timely and accurate disclosure of information and to the fair treatment of all shareholders and investors.”

Mitsui O.S.K. Lines, Ltd. management announced in a brief statement that “the Company is currently finalizing the MOL Group Corporate Management Plan ‘BLUE ACTION 2035’ Phase 2, which is expected to be announced at the end of March, and continues to strive to ensure that this plan contributes to medium- and long-term value creation for all stakeholders.”

American investor in MOL

Elliott Investment Management has acquired a “significant” stake in Mitsui OSK Lines. Two sources say it is pushing the Japanese shipping company to improve shareholder returns and capital efficiency, Reuters reported. Mitsui OSK shares continued their rally, rising by about 12% after Reuters reported the investment, which Elliott later confirmed in a statement.

A week later, Mitsui OSK Lines attracted attention after a strong share price rally, with profits of 17.8% over the past month and 40% over the past three months, according to Yahoo analysts. Mitsui OSK Lines’ recent monthly and three-month earnings growth is part of a sustained period of strong total shareholder returns over the past three and five years, suggesting that momentum is accelerating, not weakening.

The American hedge fund is at the forefront of growing investor activity in Japan. The stock market is pressuring Japanese companies to accelerate governance reforms and reshape their equity portfolios. Elliott believes Mitsui OSK should review its real estate portfolio and consider relisting its Daibiru subsidiary, sources familiar with the matter told Reuters. In 2022, Mitsui OSK converted Daibiru, whose assets include commercial properties in central Tokyo, into a wholly owned subsidiary and delisted it from the stock exchange.

MOL in Offshore and FSRU

Analysis of stock market data shows that, compared to its last close of 6,410 yen, Mitsui O.S.K. Lines is valued at approximately 5,707 yen, using a 6.68% discount rate and detailed earnings forecasts, according to Yahoo. MOL’s favorable perception is fueled by its diversification of services and expansion and investment in energy logistics, including dual-fuel LNG VLCCs. Financial stability is ensured by long-term charter contracts for LNG carrier transport and its involvement in offshore wind projects.

Among other things, Mitsui O.S.K. Lines is expanding its services in Europe based on a fleet of service vessels. The company is participating in floating wind turbine development projects in Japan. In Europe, MOL has entered into a partnership with Schoeller Holdings. MOL will operate two CSOV service vessels, with delivery scheduled for 2027. MOL will expand its European operations through Deutsche Offshore Schifffahrt.

In Taiwan, MOL is participating in the Feng Miao Offshore wind farm project. The operator has joined the Greater Changhua 1 and 2a Offshore wind farm projects, utilizing the first newly built SOV vessel in Taiwan. In Japan, MOL is involved in the Kitakyushu-Hibikinada offshore wind farm. The company has also participated in a floating wind turbine demonstration project being carried out off the coast of Aichi Prefecture.

Diversifying its business activities, Mitsui O.S.K. Lines management plans to generate revenue from various sources. One of these will be revenue from the multi-year contract for the operation of the FSRU in Gdańsk. GAZ-SYSTEM recently announced that it plans to significantly increase regasification capacity in Gdańsk by building the FSRU 2 terminal. The second FSRU unit is expected to have a regasification capacity of 4.5 billion m³.