Chiyoda (6366) Q4 2024 earnings summary

Executive summary

• Revenue rose 17.6% year-over-year to 506.0 billion JPY, but the year ended with an operating loss of 15.0 billion JPY and a net loss of 15.8 billion JPY, reversing last year’s profit.

• The Golden Pass LNG project faced major disruption due to a JV partner's Chapter 11 bankruptcy, leading to significant losses and risk reassessment.

• Equity capital dropped sharply to 4.9 billion JPY as of March 2024, down from 22.2 billion JPY a year earlier.

• New orders surged 53.3% year-over-year to 237.5 billion JPY, while order backlog declined 13.5% to 993.9 billion JPY.

• Release of FY2025 forecast is withheld pending ongoing discussions with the Golden Pass LNG project customer.

Financial highlights

• FY2023 revenue reached 506.0 billion JPY, up from 430.2 billion JPY in FY2022.

• Gross profit turned negative at (0.2) billion JPY, down from 32.7 billion JPY in FY2022, mainly due to Golden Pass LNG project losses.

• Operating income fell to (15.0) billion JPY from 18.1 billion JPY year-over-year.

• Profit attributable to owners of parent was (15.8) billion JPY, compared to 15.2 billion JPY in FY2022.

• Cash and cash equivalents increased to 166.2 billion JPY, up 59.5 billion JPY year-over-year.

Outlook and guidance

• FY2025 forecast is withheld due to unresolved issues and ongoing negotiations related to the Golden Pass LNG project.

• A new three-year Midterm Management Plan will be released to strengthen foundations and return to stable profitability.

• No dividend distribution for FY2024 due to negative retained earnings.