Kyushu Electric Power Co. will issue ¥200 billion ($1.5 billion) in preferred shares to help fund its green transition at a time when high fuel prices are weighing on the sector's profitability, the company said Friday.

Japanese utilities were hit by high fuel costs last year as a post-pandemic energy crisis was exacerbated by Russia's invasion of Ukraine.

The government has also delayed raising electricity prices as it tries to rein in inflation, at time when companies are feeling pressure to work toward meeting a national carbon neutrality goal set for 2050.