Contraction in Energy-Related Demand Due to Lower Crude Oil Prices and Global Economic Slowdown

「Amid sluggish demand for new plants in China as the energy environment there changes, we focused on demand for upgrades to existing plants and orders outside China. As a result, orders received during the consolidated fiscal year exceeded the previous year. However, manufacturing for individual projects outside China was pushed back further than expected due to factors including U.S. policy developments and the situation in the Middle East, resulting in consolidated net sales falling substantially below the previous year.」

「In the energy-related business, sales to China declined as the energy environment in China changed. However, as a result of focusing on orders from destinations outside China, orders received during the nine months ended 31 March 2026 were at the same level as the previous year.」

「Although customers remain cautious about investment in new plant construction, they are actively investing in upgrades to existing plants, including scheduled repairs and production capacity expansions. By making maximum use of our strengths, including our delivery record and quality, and working to build and deepen relationships of trust with process owners and customers, our group actively pursued sales activities targeting demand for upgrades to existing plants and succeeded in securing many orders.」

「In the energy-related business, although customers remain cautious about investment in new plant construction due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation, capital investment in existing plants, mainly for equipment upgrades, is showing signs of recovery.」

「In the energy-related business, although customers remain cautious about investment in new plant construction due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation, capital investment in existing plants, mainly for equipment upgrades, is showing signs of recovery.」

「In the energy-related business, although customers remain cautious about investment in new plant construction due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation, capital investment in existing plants, mainly for equipment upgrades, is showing signs of recovery.」

「In the energy-related business, companies remain cautious about new plant capital investment due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation.」

「In the energy-related business, companies remain cautious about new plant capital investment due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation.」

「In the energy-related business, companies remain cautious about new plant capital investment due to various factors, including the slowdown in Chinese economic growth, the prolonged situation in Ukraine, soaring resource and energy prices, and inflation.」

「Although the global economy is on a gradual recovery trend, activity toward new plant construction is not robust due to various factors, including supply chain disruptions caused by the situation in Ukraine, soaring resource and energy prices, and a slowdown in the Chinese economy resulting from the zero-COVID policy, among other factors.」

「Although the global economy is on a gradual recovery trend, activity toward new oil refining and petrochemical plant construction remains sluggish, particularly in Europe and the United States,」

「Although the stagnant global economy is on a gradual recovery trend, activity toward new oil refining and petrochemical plant construction remains sluggish.」

「In the energy-related business, manufacturing of a large-scale project for China that was ordered in 2021 is progressing and contributing to revenue, but activity toward new oil refining and petrochemical plant construction, particularly in Europe and the United States, remains sluggish, and difficult conditions continue.」

「In the energy-related business, activity toward the construction of new oil refining and petrochemical plants has remained sluggish due to concerns, among other factors, that the COVID-19 pandemic would prolong the stagnation of the global economy. Although the normalization of economic and social activity is expected as COVID-19 vaccinations progress, uncertainty about the outlook remains strong, and there are no signs of recovery in plant capital investment, particularly in Europe and the United States.」

「In the energy-related business, activity toward the construction of new oil refining and petrochemical plants has remained sluggish due to concerns, among other factors, that the COVID-19 pandemic would prolong the stagnation of the global economy. In regions where COVID-19 infections have been resurging, particularly Europe and the United States, willingness to invest in facilities has declined, with no signs of recovery. In China, by contrast, willingness to invest in facilities has been recovering along with the economy, and we are actively pursuing sales activities with the aim of securing orders, particularly for demand for new plant construction in the country.」

「However, against the backdrop of the gradual recovery in crude oil prices, the number of customer inquiries increased in the previous fiscal year, and this trend has continued in the current fiscal year, with plant owners becoming increasingly positive toward capital investment.」

「However, against the backdrop of the gradual recovery in crude oil prices, the number of customer inquiries increased in the previous fiscal year, and this trend has continued in the current fiscal year, with plant owners becoming increasingly positive toward capital investment.」

「In the energy-related business, fluctuations in crude oil prices and the strength or weakness of the global economy are influencing plant owners' investment decisions, while inquiries related to new plant construction and upgrades have continued to increase amid the recent rise in crude oil prices.」

「In the energy-related business, fluctuations in crude oil prices and global economic trends are influencing plant owners' investment decisions, and inquiries have recently increased as crude oil prices have risen.」

「In the energy-related business, fluctuations in crude oil prices and global economic trends are influencing plant owners' investment decisions, and inquiries have recently increased as crude oil prices have risen.」

「In the energy-related business, fluctuations in crude oil prices and global economic trends are influencing plant owners' investment decisions.」

「In the energy-related business, fluctuations in crude oil prices and the strength or weakness of the global economy continue to influence plant owners' investment decisions.」

「Although we captured some demand for plant equipment upgrades in China, the continued contraction in demand and the emergence of new competitors have intensified price competition further.」

「Although crude oil prices had recovered to a certain level, demand continued to contract during the six-month period. Price competition among existing certified suppliers remained severe, and the emergence of a new quasi-supplier in China intensified price competition further.」

「In the energy-related business, the downward trend in crude oil prices came to a halt at the beginning of the year, and inquiries and orders related to plant capital investment gradually increased. On the other hand, although the decline in crude oil prices has halted, crude oil prices remain low, and plant owners continue to make cautious investment decisions because of uncertainty about the outlook.」

「Lower crude oil prices created growing uncertainty about the outlook, and plant owners continued to make cautious investment decisions, causing delays in the expected order timing for many projects. In addition, shrinking demand resulting from cautious investment decisions intensified price competition.」