November 12, 2008
Chiyoda Announces the Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2009
Chiyoda Corporation (TOKYO:6366)(ISIN:JP3528600004), Japan's leading engineering and construction firm, today reported consolidated financial results for the second quarter of the current fiscal year ending March 31, 2009.
New contracts on a consolidated basis were 116,810 million yen, a 35.2% decrease compared with the same period of the previous year, and the backlog of contracts decreased 39.5% to 555,699 million yen. Even though exceeding the initial forecasts, revenues decreased 23.0% to 240,760 million yen. Operating income decreased 39.5% to 6,904 million yen, ordinary income decreased 43.6% to 9,755 million yen and net income decreased 43.1% to 6,059 million yen, however, they were ahead of the plan by 1,904 million yen, 2,755 million yen and 2,059 million yen respectively. Net income per share was 24.36 yen.
In overseas markets, plans for the construction of new plants around the world continued to be driven by growth in global energy demand. Capital investment by oil, power and gas companies in the domestic market remained lively. However, in the third quarter the effect of the global financial crisis have begun to spread to the real economy. In Chiyoda's operating environment, there is concern over declining investment due to the shrinking financial market, and the substantial drop in the price of crude oil has had some effect. Chiyoda will continue to pay attention to economic conditions and their impact.
The operating environment remains harsh owing to a serious worldwide shortage of skilled construction workers, Chiyoda continues to implement a high level of risk management including measures to counter rising costs, and is making concerted efforts to properly execute ongoing projects. As a result, Chiyoda handed over the large-scale LNG plant in Sakhalin to the customer and the first train of the ultra-large-scale LNG plants (7.8MTPA) in Qatar entered into the commissioning stage.
Chiyoda is making no revision at this time to full-year consolidated financial results for the fiscal year ending March 31, 2009, or to the year-end dividend of 11 yen per share, announced on May 14, 2008. Chiyoda revised the exchange rate assumption used for the above forecasts from 100 yen to 95 yen to the U.S. dollar.
Chiyoda Corporation, headquartered in Yokohama, Japan, provides services in the field of engineering, procurement and construction (EPC), particularly in Gas Value Chain areas, for gas processing, oil refineries and other hydrocarbon processing and industrial plant projects on a global basis including the Middle East, Russia, South East Asian, Africa and Oceania regions. For 60 years, Chiyoda has constantly leveraged its extensive experience and a far-reaching global network to give it an unrivaled advantage.