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About Chiyoda

Message from Management

中垣副社長

Founded in 1948 in the post war period to reconstruct Japan, Chiyoda started its engineering business for domestic projects mainly in the petroleum refining, gas processing and petrochemical fields, and expanded into overseas projects in the 1960’s. Since then, the Chiyoda Group has been growing steadily under the corporate philosophy of enhancing its business by aiming for harmony between energy and the environment, and contributing to the sustainable development of society.

The Group is facing dramatic changes in its operating environment. The global supplies for oil and gas have risen while demand has fallen. The long standing glut of oil and gas slows down oil and gas price recovery and tempers final investment decisions of large-scale projects by customers.

Under those critical circumstances, Chiyoda announced that it will record JPY 36,000 million of the final loss for the fiscal year ending March 2017. The expected loss was caused by the combination of a non-operating expense for the loss of equity and an extraordinary loss for loans and other expenses, related to EMAS CHIYODA Subsea Ltd., one of the Chiyoda’s affiliates, established at the end of March, 2016, to perform subsea Engineering, Procurement, Construction and Installation (EPCI) projects. I take this disappointing performance seriously as a board member, but would like to address that this loss is an investment-related issue. Our capabilities in engineering and project management continue to flourish as a global business.

The next fiscal year ending March 2018 may also be a difficult year to get new awards of large-scale LNG plants. Chiyoda will focus on awarding new projects in a variety of industrial fields covering hydrocarbon downstream projects in the US and non-ferrous metal industry including copper smelter projects. Further, Chiyoda will continue to pursue new challenges such as establishment of Hydrogen Supply Chain as a future energy resource.

The new board members will be assigned at the Ordinary General Meeting of Shareholders at the end of June and will draw up the new Mid-Term Management Plan (2017-2020).

In order to regain the trust of stakeholders, the Group works to make efforts to improve profitability through sound implementation of each project.

As an integrated engineering company, we contribute to the sustainable development of a society through tireless implementation of technologies.

It is my goal to maintain and improve our relationship with shareholders, clients, partners and other stakeholders through our new management team, supported by all the Group employees.

 

Keiichi Nakagaki
Senior Executive Vice President (Acting President & CEO)
Chiyoda Corporation