Mitsubishi Corp. plans to buy back up to 6% of its shares for 300 billion yen ($2.2 billion), joining other commodity-exposed Japanese companies that are rewarding shareholders after reporting surging profits.
(Bloomberg) — Mitsubishi Corp.
plans to buy back up to 6% of its shares for 300 billion yen ($2.2 billion), joining other commodity-exposed Japanese companies that are rewarding shareholders after reporting surging profits.
The trading house will conduct the buyback from May 10 through the end of the year, it said Tuesday as it also announced fiscal year earnings, including a 62% jump in profit from its natural gas operations.
Mitsubishi will then retire all the shares on Jan. 31.
Read: Mitsui, Mitsubishi Set Buybacks on Surging Energy Trading Profit
Mitsubishi and other Japan-based firms with exposure to commodities are using the proceeds of last year’s surge in energy prices to carry out buyback programs.
Shares of Sumitomo Corp. jumped on Tuesday after it said it would purchase its own stock, while Tokyo Gas Co. and Mitsui & Co. have also announced similar plans since February.
Read: In Buffett’s Hotel Suite, Japan Trading Houses Flagged Big Plans
The trading companies, collectively known as “sogo shosha” in Japan, have a sprawling network of businesses including stakes in commodity projects overseas.
They have benefited from a surge in energy prices and a weaker yen, as well as a vote of confidence following renewed backing by Berkshire Hathaway Inc.
(Updates with other companies from third paragraph)
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