Japanese engineering house Chiyoda has reported a net loss of 15.3 billion yen (US$135 million) in the quarter ending 30 September 2021 after recognising a loss on the Ichthys LNG project in Australia.

Chiyoda said it recorded an extraordinary loss of 20.4 billion yen ($180 million) for Ichthys LNG following an out-of-court settlement with the Ichthys operator Inpex.

Chiyoda said its revenue in the quarter was 147.4 billion yen, down 14.2% on the same period last year.

Gross profit was 11.9 billion yen, 0.8% higher than in the corresponding quarter in 2020.

The company has three major LNG projects in its backlog - the Qatar LNG and Golden Pass LNG projects have a backlog value of more than 100 billion yen; the Tangguh project has a backlog value of more than 10 billion yen.

Qatar LNG, which it is performing in joint venture with Technip Energies, is due for completion in 2027; while Golden Pass in partnership with McDermott and Zachry is due in 2025; Chiyoda with Saipem and Tripatra are targeting completion of Tangguh in 2022.

Ichthys

The Ichthys settlement between Chiyoda and its joint venture partners JGC and KBR was announced on 15 October.

A separate dispute between Chiyoda, JGC and KBR with a sub-contracting consortium comprising GE, UGL and CH2M is ongoing.

Outlook

Looking ahead, Chiyoda said the outlook for the future is unpredictable due to the effects of Covid-19 on the global economy.

"The business environment in which we operate is undergoing significant changes. These include the accelerating transition to decarbonisation/hydrogen energy, the increasingly widespread adoption of low-carbon and renewable energy, and the evolution of digital technologies.

"We will reinvigorate the existing businesses that are bolstering our earnings for now, while also accelerating initiatives in the new business areas that will pave the way for our future."

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