Japanese engineering giant Chiyoda made a slightly higher net profit than it expected in the past year, and boosted its backlog significantly, but identified a number of risks in its outlook.
Chiyoda said it made revenue of 315.4 billion yen ($2.9 billion) in the year ending 31 March 2021, down 70.5% year-on-year, but ahead of its own prediction.
Net profit was 8 billion yen ($73.5 million), one-third less than in the previous year but, again, superior to its own forecast.
Its backlog sits at 1.12 trillion yen, nearly 40% higher than one year ago thanks in large part to the North Field LNG expansion contract in Qatar which Chiyoda won with partner Technip Energies.
The North Field job comprises four new mega LNG trains each with capacity of 8 million tonnes per annum.
LNG plants and gas-related work account for more than 85% of Chiyoda's total backlog.
The company is currently executing the Tangguh LNG expansion project in Indonesia, the Golden Pass LNG development in the USA, and is providing reviews and support for the LNG project in Nigeria.
No completion date was disclosed for Tangguh, which Chiyoda is executing with Saipem and Tripatra. The schedule is under review due to Covid-19.
Golden Pass is being built by Chiyoda with partners Zachry and McDermott; completion is planned in 2025.
Meanwhile, the company is part way through a "revitalization plan" in the aftermath of its net loss net loss of 215 billion yen in the 2019 financial year.
The plan is to "reinvigorate our existing businesses and explore and unearth new businesses".
Chiyoda has recognised several major business risks including the Covid-19 pandemic; the effects of economic, political and social change; natural disasters such as earthquakes; surging equipment and material costs; and difficulty in securing workers and equipment.
In addition, the Ichthys LNG project still looms large as a financial risk through the ongoing disputes with the project client Inpex and various sub-contractors.