Chiyoda: Continued Positive Financial Results for FY 2007 Largest Backlog of Contracts Ever Enables Achievement of Sustainable Earnings Growth
IR Information May 14, 2007
May 14, 2007
Chiyoda Corporation (TSE: 6366; ISIN: JP3528600004), Japan's leading engineering and construction firm, today reported consolidated financial results for the fiscal year ended March 31, 2007.
New contracts for the fiscal year were 557,707 million yen on a consolidated basis, a 30.7% decrease compared with the previous fiscal year. Overseas, new contracts decreased 41.8% to 402,409 million yen and increased 37.8% to 155,297 million yen in Japan. The backlog of contracts as of March 31, 2007 was 1,048,679 million yen. Consolidated revenues increased 24.1% to 484,895 million yen. Operating income rose 38.5% to 28,700 million yen, ordinary income rose 58.9% to 36,797 million yen and net income increased 21.3% to 23,531 million yen. Both ordinary income and net income were higher than forecast. Net income per share was 122.41 yen. Chiyoda plans to pay a year-end dividend of 15 yen per share.
Reflecting worldwide growth in energy demand, investment in the gas value chain by natural gas producing nations and Energy Majors has been robust. In the fiscal year ended March 31, 2007, the Chiyoda Group received two large contracts for gas processing plant projects in Qatar. As for ongoing projects, in November 2006 Chiyoda completed the 4.7 million ton per annum LNG plant project in Qatar, Train 5 for Ras Laffan Liquefied Natural Gas Co., Ltd. (2). Construction was successfully completed in a very short time span of 28 months.
In the domestic market, capital investment by oil and petrochemical companies was also lively, and the Chiyoda Group achieved higher-than-forecast results for both new contracts and revenues, primarily in the fields of oil and petrochemicals.
Regarding the fiscal year ending March 31, 2008, Chiyoda will work to acquire new contracts, focusing on projects where the Company's technological advantages are highly recognized while maintaining an optimum balance with ongoing project execution. Chiyoda will also manage the high cost of materials and the tight supply of labor in order to execute as scheduled the three large-scale LNG projects in Qatar (6 LNG plants with an annual capacity at the 7.8 million ton each), as well as other ongoing projects in Japan and overseas.
For the fiscal year ending March 31, 2008, Chiyoda forecasts consolidated new contracts of 250,000 million yen, revenues of 550,000 million yen, operating income of 30,000 million yen, ordinary income of 38,500 million yen and net income of 23,500 million yen, and plans to pay a year-end dividend of 18 yen per share. The assumed exchange rate is 115 yen to the U.S. dollar.
Chiyoda Corporation, headquartered in Yokohama, Japan, provides services in the field of engineering, procurement and construction (EPC)for gas processing, oil refineries and other hydrocarbon processing and industrial plant projects, particularly in Gas Value Chain areas, on a global basis including the Middle East, Russia, Africa and South East Asian regions. For almost 60 years, Chiyoda has constantly leveraged its extensive experience and a far-reaching global network to give it an unrivaled advantage.