Chiyoda Plunges into Huge Loss over U.S. Gas Plant Project
Tokyo, Nov. 9 (Jiji Press)--Major Japanese plant engineering firm Chiyoda Corp. <6366> said Friday that it suffered a consolidated net loss of 108,606 million yen in April-September, hit by a surge in costs for a liquefied natural gas plant project in the United States.
Due to the huge loss, compared with a year-before profit of 3,480 million yen, the company's capital ratio plunged to 12.7 pct at the end of September from 37.5 pct at the end of March.
The latest earnings report included a note that "substantial doubts" may arise about the company's continuation as a going concern.
"We're looking at every possible option (to improve the company's financial standing), consulting with our top shareholder, Mitsubishi Corp. <8058>, and creditor banks," Chiyoda President Masaji Santo told a news conference on Friday.
Possible actions by Chiyoda are seen including a capital increase by new share issuance.
[Copyright The Jiji Press, Ltd.]