JGC Holdings Corporation (JGCCF) Q4 2024 Earnings Call

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Replay transcript excerpt

WEBVTT 00:00:00.031 -- 00:00:03.415 I'm Taguchi of Finance Unit. 00:00:03.415 -- 00:00:07.019 I'll explain the outline of financial results. 00:00:07.019 -- 00:00:09.900 Please turn to page 4. 00:00:09.982 -- 00:00:13.424 This is the highlights of FY2023. 00:00:14.427 -- 00:00:19.973 Due to the continued difficulties in some overseas projects in total engineering business, 00:00:19.973 -- 00:00:25.219 additional expenses were posted in Q4 as well, and partly also due to the additional 00:00:25.219 -- 00:00:30.082 risk contingencies cost, operating loss was incurred. 00:00:30.170 -- 00:00:35.233 Orders were sluggish as clients' investment decision for large contracts expected 00:00:35.233 -- 00:00:40.026 at the end of the fiscal year slid to the next fiscal year. 00:00:41.358 -- 00:00:44.926 Page 5 shows consolidated income statement. 00:00:44.926 -- 00:00:51.179 Net sales increased to 832.5 billion yen, up 37% year-on-year, 00:00:51.179 -- 00:00:56.812 but gross profit decreased 56 billion yen to 10.6 billion yen. 00:00:56.812 -- 00:01:02.063 This is due to the substantial decline in profitability in total engineering business. 00:01:02.063 -- 00:01:07.191 operating loss was 18.9 billion yen, ordinary profit was 0.3 billion 00:01:07.191 -- 00:01:12.616 yen, and loss attributable to owners or parent was 7.8 billion yen. 00:01:13.941 -- 00:01:19.547 Please take a look at slide 6. I'm going to talk about earnings by segments. 00:01:19.810 -- 00:01:24.517 Total engineering segment saw progress of large projects, and the net sales grew 40% 00:01:24.517 -- 00:01:27.839 year-on-year to 773.1 00:01:27.963 -- 00:01:30.604 billion yen. 00:01:30.650 -- 00:01:35.758 Large oil and gas-related and chemical plant projects underway in the Middle East 00:01:35.758 -- 00:01:40.926 and...