Chiyoda Announces Its Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2010
IR Information Nov 11, 2009
Chiyoda Corporation (TSE: 6366; ISIN: JP3528600004), Japan’s leading engineering and construction firm, today announced its consolidated financial results for the second quarter of the fiscal year ending March 31, 2010.
Consolidated New Contracts for the cumulative second quarter of the current fiscal year amounted to 73.218 billion yen (year-on-year decrease of 37.3%), while the consolidated Contract Backlog amounted to 328.014 billion yen (41.0% year-on-year decrease). The Chiyoda Group recorded cumulative Consolidated Revenues of 164.658 billion yen (31.6% year-on-year decrease), an Operating Loss of 2.382 billion yen (compared to a consolidated Operating Profit of 6.904 billion yen for the same cumulative quarter in the prior fiscal year), an Ordinary Loss of 380 million yen (compared to Ordinary Income of 9.755 billion yen for the same cumulative quarter in the prior fiscal year), and a Net Loss amounted to 1.745 billion yen (compared to a Net Income 6.059 billion yen for the same cumulative quarter in the prior fiscal year).
In the cumulative second quarter of the current fiscal year, the market environment surrounding the Chiyoda Group appears some signs of recovery --particularly in emerging countries-- from the global financial crisis that erupted during the prior fiscal year. There have been steady, positive movements in customer investment activities, matching expectations for a rebound in the industrial demand for oil and gas.
Under these circumstances, the Chiyoda Group has focused on securing contracts for new projects while engaging in the steady execution of on-going projects. The Chiyoda Group also has focused its efforts overseas on securing new contracts for LNG plant construction in Papua New Guinea, Floating LNG plants in Brazil, for desulfurization plant design services in Singapore, EPC management services for refinery improvement projects in Venezuela, and so on.
Regarding the execution, of the six trains (7.8 million tons/year each) in the ultra-large-scale LNG plants under construction in Qatar, two were completed, in addition to the single train completed during the prior fiscal year. The Chiyoda Group is now working to complete the remaining three trains. Because of significant construction delays in the Qatargas Trains 6 and 7 caused by the lower-than-expected productivity of the construction subcontractors, the Chiyoda Group incurred additional costs by having to adopt various measures to reinforce construction resources, including the hiring of new subcontractors. Accordingly, construction costs for the project have increased. Such being the situation, the Chiyoda Group will further strengthen its project risk management, particularly with respect to Qatargas Trains 6 and 7, and use utmost effort to improve its profitability.
The Chiyoda Group is making no revision at this time to its full-year forecasts of consolidated financial results for the fiscal year ending March 31, 2010. With respect to the year-end dividend, the Chiyoda Group revised it to 3.00 yen per share, as announced on October 23, 2009. The forecasts continue to assume an exchange rate of 90.0 yen to the U.S. dollar, as announced on October 23, 2009.