Chiyoda reports drop in annual profit
Japanese engineers Chiyoda Corp on May 7 reported a 34.4% year/year drop in net profit for the 12 months ending March 2021 owing to the disruptions caused by the Covid-19 pandemic.
The company booked a profit of 7.99bn yen ($73mn) compared with 12.17bn yen in the previous year. For the 12 months ending March 2022, it expects a further decline in profit to 6bn yen. It also warned that receivables or advanced monies expected from Ichthys LNG under an engineering, procurement and construction (EPC) contract might be partly uncollectible. The plant has been completed and delivered but the customer is in dispute with some subcontractors and the outcome of these disputes could affect the conpany's business, it said.
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Chiyoda is executing the EPC phase of LNG plants in Qatar, the US, Indonesia, and Nigeria. In Qatar, Chiyoda has won the order for the EPC phase of the North Field East LNG project. In the US, commercial production has started on all trains at the Cameron LNG project. The Golden Pass LNG project is in the EPC phase. In the Nigeria LNG project, Chiyoda is providing review and other technical support to its partners, it said.
The company said it is working on executing the construction work needed to bring to completion the Tangguh LNG project in Indonesia, and Texas Ethylene project and the Golden Pass LNG project in the US. “The engineering and procurement phases of the North Field East LNG project have also moved into high gear,” it said.
The North Field East project represents the first phase of LNG expansion in Qatar, while the second phase, referred to as the North Field South project (NFS), will further increase Qatar’s LNG production capacity from 110mn mt/yr to 126mn mt/yr.
At home, Chiyoda is working on reinforcing the LNG terminals it originally built and adding new reinforcements against earthquakes and tsunamis at gas-fired power plants.