To Our Stakeholders
We have announced the financial result of the second quarter for the fiscal year ending March 2019, on November 9, 2018.
In this quarter, the Chiyoda Group has recorded an operating loss of 96,267 million yen, ordinary loss of 96,271 million yen and loss attributable to owners of parent of 108,606 million yen due to significantly increased construction costs for ongoing LNG projects, notably the Cameron LNG Project in Louisiana in the U.S. In addition we made an announcement that we would be suspending our annual dividend for next year.
To cope with this situation, Chiyoda has established a Countermeasures Task Team led by President and CEO, charged with reorganization of the project, using all available measures to avoid further losses without delay.
In addition, the Chiyoda Group has revised its medium-term management plan "Mirai Engineering - A Grand Opportunity for the Future” which was issued in August 2017, with the main points summarized as follows;
1. Resource allocation to ongoing projects including Cameron LNG
2. Strengthening of risk management system and being selective in taking new orders to avoid overstretch
3. Fixed cost reduction initiatives
4. Enhancement of financial position
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I would humbly request your continued support and understanding of the Chiyoda Group’s future endeavors during this difficult time.
President & CEO