MODEC

Basic Information

Stock Code
6269
Industry
Machinery
Category Detail
Construction & Civil Engineering
Prefecture
Tokyo
Establishment Year
June 1987
Listing Year
July 2003
Official Website
https://www.modec.com/jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
JGC Holdings, Chugai Ro, Taihei Densetsu, Meisei Industrial, SWCC, Nikko, Mitsubishi Kakoki, Tsukishima Holdings, Chiyoda Corporation, Raise Next, Mitsui E&S, Kawasaki Heavy Industries, Metawater

Overview

MODEC is a major company ranked second in the world in the floating oil and gas production equipment sector, founded in 1987, and the sole provider of floating production facilities in Japan.

Current Situation

MODEC recorded standalone sales of approximately 270 billion yen in 2022, operating globally in the design, construction, and leasing of floating oil and gas production facilities. Nearly 100% of sales come from overseas operations, positioning it alongside SBM Offshore in the global market. It boasts the world's top track record, particularly in tension leg platforms (TLP). By leveraging cutting-edge digitalization technologies and long-term FPSO operation expertise, it strengthens its competitiveness. Since 2019, it has operated as an equity-method affiliate within the Mitsui E&S Group. It actively pursues technological innovation, such as receiving advanced factory certification from the World Economic Forum. Moving forward, it positions responses to environmental regulations and growing demand for resource development in emerging countries as key growth drivers. Utilizing advanced manufacturing technology and global talent, it aims for long-term business expansion.

Trivia

Interesting Facts

  • Plays a leading role as one of the world's top two floating oil production equipment manufacturers.
  • FPSO Cidade de Campos dos Goytacazes MV29 certified as an advanced factory by the World Economic Forum.
  • 94.1% of employees are foreign nationals, a highly global company.
  • Boasts the world's No. 1 track record in tension leg platforms (TLP).
  • Nearly 100% of total sales from overseas markets.
  • Operates as an equity-method affiliate of the Mitsui E&S Group.
  • Obtained ISO9000 certification in 1995 and focuses on quality management.
  • Advanced business structure operating multiple large FPSOs.
  • The only company in Japan designing and manufacturing floating production facilities.
  • Participates in many oil field projects in the UK and Brazil.
  • Early adopter of digitalization, promoting business efficiency.
  • Backed by Mitsui Group's technology and capital since founding.
  • Listed on TSE Second Section in 2003, promoted to First Section the following year.
  • Actively investing in environmental technology development in recent years.
  • Strengthens delivery and quality management through proprietary EPCI system.

Hidden Connections

  • Closely linked equity-method affiliate of Mitsui E&S with deep technology and capital collaboration.
  • Key player alongside SBM Offshore, dominating the global floating production equipment market.
  • Brazilian oil field FPSO certified as Fourth Industrial Revolution advanced factory by World Economic Forum.
  • Multinational workforce enables 24/7 execution of global projects.
  • Leverages Mitsui Group's network for broad domestic and international business partnerships.
  • Enhances competitiveness by providing integrated services from manufacturing to leasing and operations.
  • Digitalization business advanced through collaboration with related spin-off Shape.
  • Veteran ISO9000-certified company with high reliability in quality management.

Future Outlook

Growth Drivers

  • Increasing global demand for new offshore oil field developments
  • Expanding needs for high-performance FPSO and TLP technologies
  • Efficiency gains from digitalization technology utilization
  • Advances in environmental regulation compliance technologies and market deployment
  • Synergies from strengthened collaboration with Mitsui E&S Group
  • Emerging countries' energy demand growth driving the market
  • Improved multinational operations through global talent utilization
  • Expansion of stable revenue base via long-term leasing contracts
  • Development of green energy-related technologies such as offshore wind
  • Further sophistication of safety and quality management systems
  • Increased equipment investments accompanying resource price recovery
  • Enhanced cost competitiveness through advanced manufacturing technologies

Strategic Goals

  • Regain No. 1 position in global floating production equipment market
  • 30% improvement in operational efficiency through digitalization promotion
  • Expansion of green energy technology development and implementation
  • Deepen global business while maintaining overseas sales ratio
  • Establish sustainable supply chain and environmental standards
  • Increase multinational talent ratio beyond current levels to strengthen organization
  • Diversify business and reinforce revenue base through new product development
  • Proactively comply with and update ISO and international standards
  • Enhance and expand education and talent development programs
  • Optimize business portfolio for maximized investment efficiency

Business Segments

Design and Construction Services

Overview
Provides comprehensive design and construction services for floating oil and gas production facilities.
Competitiveness
World-leading floating production equipment technology and global construction management capabilities
Customers
  • International oil companies
  • Offshore oil and gas development companies
  • Government agencies
  • Shipping companies
  • Integrated engineering companies
Products
  • FPSO Design and Construction
  • FSO Design and Construction
  • TLP Design and Construction
  • Installation Works under EPCI Contracts
  • Leasing and Operations Services

Leasing and Operations Services

Overview
Deploys leasing and long-term operations support services for floating production facilities.
Competitiveness
Long-term operation expertise and efficient operations through IoT utilization
Customers
  • Oil companies
  • Energy investment funds
  • Offshore site operators
  • Maintenance and inspection providers
Products
  • FPSO Leasing
  • Equipment Maintenance and Inspection
  • Operations Digitalization Services
  • Charter Contracts

Digital Services and Innovation

Overview
Services to optimize offshore plant operations using digital technologies.
Competitiveness
Integration of extensive field data and advanced analysis technologies
Customers
  • Offshore energy companies
  • Plant operators
  • Technology development organizations
  • Related subsidiaries and spin-offs
Products
  • Operations Data Utilization Solutions
  • Plant Digitalization
  • Operations Efficiency Software
  • New Technology Development Support

Technology and Engineering Support

Overview
Supports optimal offshore facility design with advanced technical assistance.
Competitiveness
Leveraging the comprehensive strengths of the Mitsui E&S Group
Customers
  • New oil field developers
  • Construction partner companies
  • Resource development consultants
  • Related equipment manufacturers
Products
  • Technical Consulting
  • Custom Design Services
  • Testing and Evaluation Support
  • Equipment Improvement Proposals

Manufacturing and Procurement Support

Overview
Ensures quality through high-precision manufacturing and global procurement.
Competitiveness
Reliable manufacturing network and management system
Customers
  • Offshore facility construction companies
  • Material suppliers
  • International procurement departments
  • Specialized processing manufacturers
Products
  • Stainless Steel Structural Components
  • Custom Pipelines
  • Dedicated Equipment Manufacturing
  • Supply Chain Management

Environmental Safety and Quality Management

Overview
Reduces risks through high-standard safety and quality management.
Competitiveness
Quality assurance system certified under ISO9000
Customers
  • International certification bodies
  • Energy company safety departments
  • Operator audit teams
  • Regulatory compliance officers
Products
  • ISO Certification Compliance
  • Safety Management Systems
  • Environmental Risk Assessment
  • Quality Assurance Programs

Overseas Base Logistics Support

Overview
Provides comprehensive logistics support for overseas facility construction.
Competitiveness
Support system attuned to local conditions in each region
Customers
  • Overseas project teams
  • Local procurement staff
  • International shipping companies
  • Construction site managers
Products
  • Equipment Transportation Services
  • Local Logistics Management
  • Storage and Maintenance Support
  • Procurement Logistics

Maintenance and Support

Overview
Maintenance services supporting stable operations of long-term facilities.
Competitiveness
Rapid response by experienced engineers
Customers
  • FPSO operators
  • Offshore equipment maintenance providers
  • Equipment management companies
  • Energy plants
Products
  • Periodic Inspection Services
  • Breakdown Response Maintenance
  • Operations Efficiency Improvement Proposals
  • Preventive Maintenance Programs

Research and Development Operations

Overview
Contributes to enhancing industry competitiveness through advanced R&D.
Competitiveness
Strong partnerships with domestic and international research institutions
Customers
  • Industry-academia-government collaborations
  • Energy industry
  • Technology research institutes
  • Universities and academic institutions
Products
  • Floating Structure Optimization Technology
  • Environmental Load Reduction Technology
  • New Materials Development
  • Next-Generation Facility Design

Training and Human Resource Development Services

Overview
Promotes development of advanced engineers and enhances safety awareness.
Competitiveness
Global talent network and practical guidance capabilities
Customers
  • Engineer training institutions
  • Domestic and international trainees
  • Related companies
  • Vocational schools
Products
  • Technical Training Programs
  • Safety Education Courses
  • International Talent Development
  • Continuing Education Support

Charter and Operations Management

Overview
Comprehensive implementation of leasing and operations management for floating facilities.
Competitiveness
Stable revenue base from long-term contracts
Customers
  • Oil majors
  • Offshore drilling companies
  • Shipping companies
  • Equipment leasing companies
Products
  • FPSO Charter Services
  • Equipment Operations Management
  • Contract Negotiation Support
  • Risk Management

Green Energy Technology Development

Overview
Strengthens technology development and environmental responses for a decarbonized society.
Competitiveness
Conversion capabilities leveraging oil-related technologies
Customers
  • Renewable energy companies
  • Environmental investors
  • ESG-promoting companies
  • Regulatory authorities
Products
  • Offshore Wind Installation Technology
  • Environmentally Considerate Floating Structures
  • CO2 Reduction Technology Development
  • Sustainability Reporting

Competitive Advantage

Strengths

  • Japan's only manufacturer of floating oil and gas equipment
  • World No. 2 track record in floating facility construction
  • High technological capabilities and EPCI response
  • Strong global customer base
  • Advanced digitalization technologies
  • Multinational global workforce
  • Extensive experience in long-term FPSO operations
  • Support from Mitsui E&S Group
  • ISO9000 quality certification
  • Advanced factory certified by World Economic Forum
  • Efficient leasing and chartering business
  • Advanced safety and environmental management system
  • Flexible response via global bases
  • Comprehensive maintenance and repair network
  • Strong financial position and stable balance sheet

Competitive Advantages

  • Overwhelming superiority with world's largest TLP track record
  • Enhanced customer convenience through full-process EPCI services
  • Operations optimization using digitalization
  • Global customer network and long-term contracts
  • Technical and capital support from Mitsui E&S Group
  • Total services from manufacturing to operations
  • Nearly 100% overseas sales ratio for global competitiveness
  • Rapid regulatory compliance with advanced environmental technologies
  • 24/7 project management by multinational talent
  • Capability to simultaneously operate and manage multiple large FPSOs
  • High-quality delivery guaranteed by ISO certification
  • Possesses World Economic Forum-certified 'Lighthouse' factory
  • Numerous track records in major overseas oil field projects
  • Robust supply chain and procurement capabilities
  • Risk reduction through advanced safety management systems

Threats

  • Long-term instability in crude oil prices
  • Cost increase risks from stricter environmental regulations
  • Project impacts from political instability in emerging countries
  • Technological innovation and price competition from rivals
  • Impact of exchange rate fluctuations on earnings
  • Declining oil demand from alternative energy adoption
  • Risks of international supply chain disruptions
  • Resource supply halts due to geopolitical risks
  • Intensifying global competition for talent acquisition
  • Adaptation burdens from rapid digital technology advances
  • Operational halts from natural disasters
  • Risks of technology patent litigation

Innovations

2020: WEF-Certified Advanced FPSO Factory 'Lighthouse'

Overview
FPSO facility off Brazil certified as a world-leading factory advancing the Fourth Industrial Revolution.
Impact
Elevated international recognition and promotion of new customer acquisition.

2021: Enhancement of Digitalization Technologies

Overview
Promotes operational efficiency using long-term operations data from FPSOs.
Impact
Achieved reductions in operating costs and improvements in uptime.

2022: Integration of Manufacturing Processes in EPCI Business

Overview
Established efficient project integration management from design to installation.
Impact
Achieved shorter delivery times and improved quality.

2023: Development of Ultra-Deepwater FPSO Design Technology

Overview
Practical implementation of ultra-deepwater operation technologies tailored for presalt oil fields.
Impact
Strengthened competitive edge and technological differentiation.

2024: Remote Monitoring System for Equipment Using AI and IoT

Overview
Advanced anomaly detection and preventive maintenance, contributing to safety improvements.
Impact
Shortened fault response times and reduced maintenance costs.

Sustainability

  • Promoting energy-saving production methods at advanced factories
  • Strengthening waste reduction and recycling systems
  • Participation in marine environmental protection programs
  • Promoting collaboration with green energy development
  • Introducing environmentally considerate standards in supply chain
  • Thorough safety and health management systems
  • Promoting employee diversity and international talent utilization
  • Maintaining ISO14001 environmental management certification
  • Setting and managing progress on CO2 emission reduction targets
  • Environmental education support programs for local communities
  • Collaboration with international sustainability rating agencies
  • Energy optimization through digital technologies