Despite exceeding expectations, Chiyoda has reported significant decreases in new contracts, revenues and operating income for the second quarter of the current fiscal year when compared with the same period of the previous year.
The Yokohama based company recently handed over the large-scale LNG plant in Sakhalin to the customer, while the first train of the ultra-large-scale LNG plants in Qatar entered into the commissioning stage as a result of a continued emphasis on project execution.
Tight labour supply and rising material costs continue to create a difficult operating environment, particularly in Qatar. In response, 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 construction projects.
Plans for the construction of new plants in overseas markets had been driven by the continued growth in global energy demand. However, the downturn in the global economy has lead to concern at Chiyoda over declining investment in a shrinking financial market.
Chiyoda states that it will continue to pay careful attention to the fluctuating economic conditions and their potential impact on the company.