The State Utilities Behind the Power PlantsNarrow moat

Marubeni (8002) — moat facet

Marubeni's power plants sell to state utilities on long contracts, which is steady until a government renegotiates.

Marubeni has been an independent power producer since 19941. Its power plants sell under long-term contracts to utilities and governments, which is why the business is steadier than coal or copper. The IPP projects earned ¥43.0 billion in the year to March 2026, down from ¥59.8 billion2.

IPP projects net profit (¥ bn)59.8Yr to Mar 202543.0Yr to Mar 2026Marubeni IR presentation, May 2026; includes an Indonesian geothermal impairment of about ¥11bn
A steady business that fell by more than a quarter in a year.

The fall came from specific assets rather than customers defaulting: Marubeni impaired an Indonesian geothermal project by about ¥11 billion3, and it sells stakes as projects mature, booking a gain of about ¥13 billion on an overseas power plant in April-June 20264.

The client here is often a state utility in an emerging market. The contract is long and the counterparty is a government, which is safe until the government decides to renegotiate.

The business has been built over three decades: independent power production from 1994 and renewable power from 19975. Its net coal-fired generation capacity is about 1.4 GW6, and the segment also holds water and wastewater businesses whose profit rose from ¥11.8 billion to ¥13.8 billion and FPSO projects at ¥6.4 billion7.

The measure is IPP profit excluding gains and impairments. If it keeps falling, the portfolio is ageing faster than it is being replaced.

Moat trajectory: Narrowing

IPP profit fell from ¥59.8 billion to ¥43.0 billion with an impairment in Indonesia; the company is selling mature stakes.

The number that tests this moat
Reported
IPP projects net profit
¥43.0bn against ¥59.8bn, year to March 2026

Long-term contracts should make this steady; a falling line means ageing assets or renegotiation.

Source: Marubeni full-year IR presentation, May 2026 ↗
References
  1. ReportedMarubeni has been an independent power producer since 1994.
    Marubeni Integrated Report 2026, introduction and At a Glance - the company history from 1858 and the market positions the company states for its businesses. — 2026 · publ. 2026 · source ↗
  2. ReportedThe IPP projects earned ¥43.0 billion in the year to March 2026, down from ¥59.8 billion.
    Marubeni Corporation, full-year IR presentation for the fiscal year ended March 31, 2026 - net profit of major group companies by segment, with ownership and business descriptions. — FY to March 2026 · publ. 1 May 2026 · source ↗
  3. ReportedThe fall came from specific assets rather than customers defaulting: Marubeni impaired an Indonesian geothermal project by about ¥11 billion, and it sells stakes as projects mature, booking a gain of about ¥13 billion on an overseas power plant in April-June 2026.
    Marubeni Corporation, full-year IR presentation for the fiscal year ended March 31, 2026 - capital allocation, divestments and investments, shareholder returns, dividends and buybacks, credit ratings, and the share price and market value milestones. — FY to March 2026 · publ. 1 May 2026 · source ↗
  4. ReportedThe fall came from specific assets rather than customers defaulting: Marubeni impaired an Indonesian geothermal project by about ¥11 billion, and it sells stakes as projects mature, booking a gain of about ¥13 billion on an overseas power plant in April-June 2026.
    Marubeni Corporation, IR presentation for the three months ended June 30, 2026 - adjusted net profit, core operating cash flow, one-time items, capital allocation, major group company results and the share buyback plan. — April-June 2026 · publ. 3 August 2026 · source ↗
  5. ReportedThe business has been built over three decades: independent power production from 1994 and renewable power from 1997.
    Marubeni Integrated Report 2026, introduction and At a Glance - the company history from 1858 and the market positions the company states for its businesses. — 2026 · publ. 2026 · source ↗
  6. ReportedIts net coal-fired generation capacity is about 1.4 GW, and the segment also holds water and wastewater businesses whose profit rose from ¥11.8 billion to ¥13.8 billion and FPSO projects at ¥6.4 billion.
    Marubeni Integrated Report 2026, Section 2 - sustainability and climate disclosures including net generation capacity of coal-fired power projects. — 2026 · publ. 2026 · source ↗
  7. ReportedIts net coal-fired generation capacity is about 1.4 GW, and the segment also holds water and wastewater businesses whose profit rose from ¥11.8 billion to ¥13.8 billion and FPSO projects at ¥6.4 billion.
    Marubeni Corporation, full-year IR presentation for the fiscal year ended March 31, 2026 - resource asset table (stakes, capacities, partners and exposures), equity volumes, sensitivities to commodity prices and currencies, and the Middle East risk scenarios and risk-management framework. — FY to March 2026 · publ. 1 May 2026 · source ↗
Sources
Generated September 24, 2026