Japan’s Marubeni considers fresh shareholder distributions on healthy cash flow

TOKYO :Japanese trading house Marubeni forecast on Friday an increase in cash flow for the fiscal year ending in March, allowing for additional shareholder distributions and spending on new investments.
The company expects its core operating cash flow to increase by 10 billion yen ($66 million) to 580 billion yen, divestments to rise by 90 billion yen to 160 billion yen and free cash flow to grow by 30 billion yen to 110 billion yen, it said on Friday.
In particular, Marubeni now expects higher profits in its power, finance and real estate businesses, among others, compared to its May forecast.
Shareholder distributions are forecast at 200 billion yen and new investments and capital expenditures at 650 billion yen, the company’s presentation showed.
So far this fiscal year, Marubeni has distributed 125 billion yen to shareholders and spent 453 billion yen on new investments and capital expenditures.
“We will consider implementing additional shareholder returns in the future, taking into account the status of cash flow and balance sheets, and pursuing maximisation of returns,” Chief Financial Officer Takayuki Furuya told reporters.
On Friday, Marubeni posted a net profit of 238.1 billion yen for the six months to end-September, down 13 per cent from the same period a year earlier, due to lower commodity prices. 
Marubeni kept its forecast for net profit for the fiscal year ending March 31, 2025, unchanged at 480 billion yen. 
($1 = 152.5200 yen)