Restraint on capital investment by oil- and gas-producing countries and others due to falling crude oil prices
First written in FY2017-Q2. 11 of 33 entries say "Softened", first in FY2017-Q3. Latest entry: FY2026.
Jgc Holdings moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 3 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026Additional postponement factorsAnnual report
「While various capital expenditure plans in Japan and overseas were progressing, some customers postponed final investment decisions on capital expenditure to fiscal 2026 and beyond because CAPEX continued to rise due to higher interest rates and increases in construction costs and other expenses. This trend was more pronounced in sustainable projects in Japan and overseas, including hydrogen, fuel ammonia and SAF, where customers were taking time to establish government regulatory frameworks, secure offtakers and obtain subsidies in addition to dealing with higher CAPEX.」
Postponement of final investment decisions to fiscal 2026 and beyond continued. For sustainable projects, the company added the establishment of regulatory frameworks, securing offtakers and obtaining subsidies as postponement factors alongside higher CAPEX. - FY2026-H1WorsenedAnnual report
「While various capital expenditure plans in Japan and overseas were progressing, some customers postponed final investment decisions on capital expenditure to the second half of fiscal 2025 or fiscal 2026 and beyond because CAPEX remained high due to rising interest rates and increases in construction costs and other expenses. This trend was more pronounced in sustainable projects in Japan and overseas, including hydrogen, fuel ammonia and SAF. Higher CAPEX meant that customers needed more time to secure subsidies and review budgets, and some projects began to be pushed back.」
The postponement of final investment decisions moved further out from fiscal 2025 and beyond to the second half of fiscal 2025 and fiscal 2026 and beyond. In particular, for hydrogen, fuel ammonia and SAF projects, delays in securing subsidies and reviewing budgets were identified as additional postponement factors alongside persistently high CAPEX. - FY2025-H1WorsenedAnnual report
「While various capital expenditure plans in Japan and overseas were progressing, some customers began postponing final investment decisions on capital expenditure to fiscal 2025 and beyond because initial investment costs remained high due to rising interest rates and increases in construction costs and other expenses.」
The company stated that some customers had begun postponing final investment decisions on capital expenditure to fiscal 2025 and beyond because rising interest rates and construction costs had kept initial investment costs high. The postponement moved further out from fiscal 2024 and beyond as indicated in the previous fiscal year. - FY2024MaterialisedAnnual report
「While various capital expenditure plans in Japan and overseas were progressing, some customers began postponing the timing of their investment decisions to fiscal 2024 and beyond because initial investment costs were trending higher due to rising interest rates and increases in construction costs and other expenses.」
The company stated that some customers had in fact begun postponing investment decisions to fiscal 2024 and beyond because of higher interest rates, construction costs and other expenses. - FY2024-Q3Monitoring the timing of customer investment decisionsAnnual report
「While various capital expenditure plans in Japan and overseas were progressing, customers' initial investment costs were trending higher due to rising interest rates and inflation, and we are therefore closely monitoring the timing of customers' investment decisions.」
Although capital expenditure plans in Japan and overseas were progressing, the company added that it was monitoring the timing of investment decisions because rising interest rates and inflation were increasing customers' initial investment costs. - FY2024-Q2SoftenedAnnual report
「Demand for natural gas, including LNG, which has a relatively lower environmental impact, remained high from the perspective of reconciling energy security with low-carbonization and decarbonization, and capital expenditure plans in oil- and gas-producing countries progressed for both new-build projects and the expansion and modification of existing plants.」
With demand for natural gas and LNG remaining high, progress in capital expenditure plans by oil- and gas-producing countries broadened from new-build projects to include the expansion and modification of existing plants. The environment of restrained investment eased further. - FY2024-Q1SoftenedAnnual report
「Demand for natural gas, including LNG, which has a relatively lower environmental impact, remained high from the perspective of reconciling energy security with decarbonization, and capital expenditure plans in oil- and gas-producing countries progressed steadily.」
The company stated that capital expenditure plans in oil- and gas-producing countries progressed steadily against the backdrop of continued strong demand for natural gas and LNG, further easing the risk of restrained investment. - FY2023RestatedAnnual report
「Many capital expenditure projects in oil- and gas-producing countries progressed steadily.」
The company continued to report steady progress on capital expenditure projects in oil- and gas-producing countries, supported by the importance of natural gas and LNG. - FY2023-Q3SoftenedAnnual report
「The importance of natural gas, including LNG, which has a relatively lower environmental impact, increased from the perspective of reconciling energy security with decarbonization, and capital expenditure in oil- and gas-producing countries moved into the implementation phase, with steady progress made on many projects.」
Capital expenditure in oil- and gas-producing countries moved into the implementation phase, and many projects progressed steadily, further easing the risk of restrained investment. - FY2023-Q2SoftenedAnnual report
「Energy demand continued to recover, and the importance of natural gas, including LNG, which has a relatively lower environmental impact, increased from an energy security perspective. Capital expenditure projects in oil- and gas-producing countries made steady progress toward implementation.」
The company stated that capital expenditure projects in oil- and gas-producing countries progressed toward implementation as energy demand recovered and natural gas and LNG became more important. - FY2023-Q1SoftenedAnnual report
「In the overseas market for the Group's comprehensive engineering business, energy demand recovered and the importance of natural gas, including LNG, which has a relatively lower environmental impact, increased from an energy security perspective. As a result, oil- and gas-producing countries showed a marked increase in the restart of capital expenditure plans.」
Against the backdrop of recovering energy demand and the growing importance of natural gas and LNG, the restart of capital expenditure plans by oil- and gas-producing countries became more pronounced, further easing the environment of restrained investment. - FY2022SoftenedAnnual report
「Energy demand began to recover during the second half of the fiscal year. In addition, the importance of natural gas, including LNG, which has a relatively lower environmental impact, increased from an energy security perspective, prompting oil- and gas-producing countries to begin restarting their capital expenditure plans.」
The recovery in energy demand and the growing importance of natural gas and LNG led oil- and gas-producing countries to begin restarting capital expenditure plans, easing the environment of restrained investment. Uncertainty remained due to COVID-19, higher resource prices and the situation in Ukraine. - FY2022-Q3RestatedAnnual report
「During the first nine months of the fiscal year, in the overseas market for the comprehensive engineering business, both the Energy Solutions field, including oil refining, petrochemicals and chemicals, gas processing, LNG, clean energy and nonferrous smelting, and the Facility Infrastructure Solutions field, including power generation, receiving terminals, pharmaceuticals, healthcare, water treatment and railways, remained in an uncertain business environment. Although the global economy was recovering as COVID-19 vaccinations progressed, the pace of recovery varied by country and region, and the spread of variants and other factors continued to make the outlook uncertain.」
The company continued to state that, although the global economy was recovering as vaccination progressed, uneven recovery across countries and regions and the spread of variants kept the business environment uncertain. - FY2022-Q2WorsenedAnnual report
「Although the global economy was generally recovering as COVID-19 vaccinations progressed, the pace of recovery varied by country and region due to the spread of variants and other factors, and the business environment remained uncertain.」
The company stated that the global economy was recovering as vaccination progressed, but the pace of recovery varied across countries and regions because of the spread of variants, leaving the outlook uncertain. - FY2022-Q1SoftenedAnnual report
「During the first three months of the fiscal year, in the overseas market for the comprehensive engineering business, both the Energy Solutions field, including oil refining, petrochemicals and chemicals, gas processing, LNG, clean energy and nonferrous smelting, and the Facility Infrastructure Solutions field, including power generation, receiving terminals, pharmaceuticals, healthcare, water treatment and railways, remained in an uncertain business environment. The global economy was trending toward recovery as COVID-19 vaccinations became more widespread. Customer capital expenditure was beginning to show signs of improvement, including orders for front-end engineering design services, but final investment decisions had not yet been reached and conditions remained difficult.」
The recovery in the global economy as COVID-19 vaccines became more widespread and orders for FEED services brought some improvement from the previously uncertain market environment. However, customers had not yet made final investment decisions and difficult conditions continued. - FY2021-Q3RestatedAnnual report
「Although the global economy remained uncertain due to the impact of COVID-19, crude oil prices were gradually recovering but had not yet changed customer capital expenditure trends. The market outlook therefore remained difficult to predict.」
The company continued to describe uncertainty in the global economy and noted that, although crude oil prices were recovering, this had not yet led customers to resume capital expenditure. - FY2021-Q2RestatedAnnual report
「Although the global economy showed signs of recovery from the impact of COVID-19, which began in early 2020, it remained depressed. Crude oil prices also remained low, and the outlook for the market environment therefore continued to be uncertain.」
The company continued to state that the outlook for the market environment was uncertain because the global economy remained weak despite signs of recovery and crude oil prices remained low. - FY2021-Q1RestatedAnnual report
「The market environment remained uncertain as the global economy deteriorated significantly due to the impact of COVID-19 and crude oil prices remained at low levels.」
The deterioration in the global economy caused by COVID-19 and continued low crude oil prices resulted in ongoing uncertainty in the market environment. - FY2020WorsenedAnnual report
「The market environment became uncertain as the global spread of COVID-19 was expected to slow the global economy and reduce energy demand, while customers postponed final investment decisions against the backdrop of a sharp decline in crude oil prices.」
The company stated that the global spread of COVID-19 and the sharp fall in crude oil prices led customers to postpone final investment decisions and capital expenditure plans, making the market environment more uncertain. - FY2020-Q3More specific risk factorsAnnual report
「In the overseas oil and gas field of the comprehensive engineering business, it remained necessary to monitor global political and economic conditions, including U.S.-China trade frictions and the situation in the Middle East. However, oil- and gas-producing countries had begun restarting capital expenditure plans, particularly for large-scale LNG and new refinery projects, and the surrounding business environment was improving overall.」
While maintaining its explanation of resumed investment plans and overall improvement in the business environment, the company specifically identified U.S.-China trade frictions and the situation in the Middle East as factors requiring monitoring. - FY2020-Q2RestatedAnnual report
「During the first six months of the fiscal year, in the overseas oil and gas field of the comprehensive engineering business, including oil refining, petrochemicals, gas processing and LNG, it remained necessary to monitor global political and economic conditions. However, oil- and gas-producing countries had begun restarting capital expenditure plans, particularly for large-scale LNG and new refinery projects, and the surrounding business environment was improving overall.」
The company continued to describe the restart of capital expenditure plans, particularly for large-scale LNG and new refinery projects, and the overall improvement in the business environment, while noting the need to monitor political and economic conditions. - FY2020-Q1SoftenedAnnual report
「In the overseas oil and gas field of the comprehensive engineering business, including oil refining, petrochemicals, gas processing and LNG, it remained necessary to monitor global political and economic conditions. However, oil- and gas-producing countries had begun restarting capital expenditure plans, particularly for large-scale LNG and new refinery projects, while domestic plans included the refurbishment and maintenance of existing refinery facilities and new chemical-sector facilities. Overall, the surrounding business environment was gradually improving.」
The company said that, despite the need to monitor political and economic conditions, the restart of investment was broadening through large-scale LNG and new refinery projects overseas and refurbishment and new-build projects in Japan, with the business environment improving overall. - FY2019-Q3WorsenedAnnual report
「During the first nine months of the fiscal year, crude oil prices had been volatile since October, but oil- and gas-producing countries had begun restarting their capital expenditure plans, and the business environment surrounding the Group was improving overall.」
The description changed from stable crude oil prices through the previous quarter to volatile price movements since October. The restart of investment plans and overall improvement in the business environment continued. - FY2019-Q2SoftenedAnnual report
「During the first six months of the fiscal year, stable crude oil prices since 2016 prompted oil- and gas-producing countries to begin restarting their capital expenditure plans, and the business environment surrounding the Group is improving overall.」
The company stated that the business environment was improving overall as crude oil prices remained stable and investment plans resumed, with no reference to the uncertainty mentioned through the previous quarter. The risk of restrained capital expenditure had eased further. - FY2019-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, stable crude oil prices since 2016 led to signs of oil- and gas-producing countries resuming their capital investment plans, and the business environment surrounding the Group was improving overall, although some uncertainty remained.」
The company continued to state that the business environment was improving as crude oil prices remained stable and investment plans resumed, while some uncertainty remained. - FY2018RestatedAnnual report
「During the fiscal year, stable crude oil prices since 2016 prompted oil- and gas-producing countries to begin restarting their capital expenditure plans, and the business environment surrounding the Group is gradually improving, although some uncertainty remains.」
The company continued to explain that the business environment was improving as crude oil prices remained stable and investment plans resumed, although uncertainty remained. - FY2018-Q3RestatedAnnual report
「During the first nine months of the fiscal year, stable crude oil prices since 2016 prompted oil- and gas-producing countries to begin restarting their capital expenditure plans, and the business environment surrounding the Group is gradually improving, although some uncertainty remains.」
The company continued to state that the environment was improving as crude oil prices remained stable and investment plans resumed, while some uncertainty remained. - FY2018-Q2RestatedAnnual report
「During the first six months of the fiscal year, stable crude oil prices since 2016 prompted oil- and gas-producing countries to begin restarting their capital expenditure plans, and the business environment surrounding the Group is gradually improving, although some uncertainty remains.」
The company reiterated that the environment continued to improve on the back of stable crude oil prices and the restart of capital expenditure plans, while some uncertainty remained. - FY2018-Q1SoftenedAnnual report
「During the first three months of the fiscal year, stable crude oil prices since 2016 prompted oil- and gas-producing countries to begin restarting their capital expenditure plans, and the business environment surrounding the Group is gradually improving.」
The filing stated that the risk of restrained capital expenditure had eased further as crude oil prices remained stable and oil- and gas-producing countries began restarting their investment plans. - FY2017-Q3SoftenedAnnual report
「During the first nine months of the fiscal year, the gradual recovery in crude oil prices, which had been declining since mid-2014, prompted oil- and gas-producing countries to begin restarting their capital expenditure plans. Although capital expenditure on large-scale LNG projects and other projects remained restrained, the business environment surrounding the Group improved.」
The environment of constrained capital spending eased in part as crude oil prices recovered and capital spending plans were restarted. However, spending remained constrained on large-scale LNG projects and other projects. - FY2017-Q2First statedAnnual report
「During the first six months of the fiscal year, overall capital expenditure restraint by oil- and gas-producing countries, major oil companies and others continued in response to the decline in crude oil prices that began in mid-2014.」
The company explained that customers, including oil- and gas-producing countries and major oil companies, continued to restrain capital expenditure against the backdrop of lower crude oil prices.