Energy-related business turns profitable through large projects, high capacity utilization and cost reductions
First written in FY2018-Q3. 16 of 33 entries say "Advanced", first in FY2018. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026WorsenedAnnual report
「For projects that were temporarily suspended after the customer’s financing problems came to light, the timing and conditions for the specific resumption of manufacturing have not been confirmed. As the resumption of manufacturing and collection of consideration remain uncertain, we recorded a provision for doubtful accounts of ¥196.521 million in selling, general and administrative expenses for receivables recognized before we suspended manufacturing.」
In the energy-related business, orders received exceeded the previous year, but manufacturing was pushed back, factory utilization declined, and raw material prices and freight rates rose. In addition, projects were suspended due to customer financing problems, and a provision for doubtful accounts was recorded. - FY2026-H1WorsenedAnnual report
「Orders during the interim period exceeded the previous-year level, with 2 large orders for China in the first quarter and 1 large order related to equipment upgrades in the Middle East in the second quarter. However, the order backlog at the end of June 2025 was lower than usual, and orders received during the period were delayed beyond expectations, so manufacturing progress could not be brought back on schedule. As a result, revenue was ¥1,954.664 million, down 25.5% year on year, and segment profit was ¥503.737 million, down 36.5%.」
Although orders exceeded the previous-year level on the strength of large orders for China and the Middle East, manufacturing progress could not be recovered because of the low opening order backlog and delays in the timing of orders, resulting in lower revenue and segment profit. - FY2025-H1WorsenedAnnual report
「Manufacturing of ordered projects progressed as planned and revenue was recognised. However, in the previous interim period, the operating profit margin was high because lower-than-budgeted ocean freight costs, following a decline from the level assumed during the COVID-19 pandemic, boosted profit, and highly profitable quick-delivery projects were available because of customer circumstances. In the current interim period, personnel costs increased as employee stock-based compensation allocated at the end of the previous fiscal year was expensed to improve employee engagement. As a result, revenue was ¥2,622.071 million, up 0.3% year on year, and segment profit was ¥792.862 million, down 10.9%.」
Although manufacturing of ordered projects progressed as planned, the energy-related business lacked the temporary profit-boosting factors present in the previous year and was also affected by the expensing of employee stock-based compensation, among other factors. Segment profit therefore declined 10.9% year on year. - FY2024AdvancedAnnual report
「As a result, revenue was ¥6,565.515 million, up 18.7% from the previous fiscal year, and segment profit was ¥1,985.488 million, up 30.0%. Of the ¥6,565.515 million in revenue, ¥5,050.245 million, or 76.9% of energy-related business revenue, was generated from existing plants.」
The energy-related business reported higher revenue and profit, supported by sales activities targeting upgrade demand at existing plants, high utilisation rates and lower manufacturing costs. Revenue from existing plants was quantified at 76.9% of the total. - FY2024-Q3AdvancedAnnual report
「During the third quarter, the company also received orders for large equipment-upgrade projects. At the Dalian plant, it worked to improve profitability by maintaining a high utilisation rate through production-plan optimisation and reducing manufacturing-related costs, including subcontracted processing costs. As a result, revenue was ¥4,079.031 million, up 10.8% year on year, and segment profit was ¥1,328.773 million, up 40.8%.」
Additional orders for large equipment-upgrade projects, continued high utilisation at the Dalian plant and lower manufacturing costs resulted in segment profit of ¥1,328.773 million in the energy-related business, up 40.8% year on year. - FY2024-Q2AdvancedAnnual report
「During the first six months of the fiscal year, the company received orders for large new-build and equipment-upgrade projects. At the Dalian plant, it rearranged the production plan and worked to improve profitability by maintaining a high utilisation rate. As a result, revenue was ¥2,615.530 million, up 20.8% year on year, and segment profit was ¥889.962 million, up 66.8%.」
Orders for large new-build and equipment-upgrade projects, together with the rearrangement of the Dalian plant's production plan to maintain a high utilisation rate, resulted in a 66.8% year-on-year increase in segment profit in the energy-related business. - FY2024-Q1AdvancedAnnual report
「During the first quarter, lower manufacturing costs and a decline in ocean freight costs to pre-COVID levels reduced costs more than initially expected and boosted profit. As a result, revenue was ¥1,238.286 million, down 3.2% year on year, and segment profit was ¥427.570 million, up 28.0%.」
Revenue in the energy-related business declined 3.2% year on year, while segment profit rose 28.0% to ¥427.570 million, supported by lower manufacturing and ocean freight costs. - FY2023AdvancedAnnual report
「As a result, revenue was ¥5,531.960 million, up 12.7% from the previous fiscal year, and segment profit was ¥1,527.029 million, up 37.8%.」
The energy-related business captured demand for upgrades at existing plants, increasing revenue from ¥4,906.853 million and segment profit from ¥1,108.408 million in the previous fiscal year to ¥5,531.960 million and ¥1,527.029 million, respectively. - FY2023-Q3AdvancedAnnual report
「As a result, revenue was ¥3,681.193 million, up 4.9% year on year, and segment profit was ¥943.942 million, up 15.5%.」
Against a backdrop of sales activities targeting demand for upgrades at existing plants and several large project orders, revenue and profit in the energy-related business exceeded the previous-year level, with segment profit rising to ¥943.942 million. - FY2023-Q2WorsenedAnnual report
「In terms of production, many employees of 那賀設備（大連）有限公司 contracted COVID-19 following the lifting of China's zero-COVID policy, causing operations in December to decline substantially and affecting revenue recognised according to manufacturing progress. As a result, revenue was ¥2,165.711 million, down 19.3% year on year, and segment profit was ¥533.614 million, down 21.5%.」
In the energy-related business, lower operating levels at the Dalian plant affected manufacturing progress and revenue, causing revenue and segment profit to fall below the previous-year level. - FY2023-Q1WorsenedAnnual report
「As a result, revenue was ¥1,279.426 million, down 4.8% year on year, and segment profit was ¥333.919 million, down 3.8%.」
Although the energy-related business is pursuing sales related to demand for upgrades at existing plants, both revenue and segment profit fell below the previous-year level. - FY2022WorsenedAnnual report
「As a result, revenue was ¥4,906.853 million, down 7.3% from the previous fiscal year, and segment profit was ¥1,108.408 million, down 11.5%.」
Revenue and segment profit in the energy-related business both fell below the previous fiscal-year level. The company states that weak demand for new plant construction and supply-chain disruptions affected orders and production. - FY2022-Q3AdvancedAnnual report
「Although the global economy is on a gradual recovery path, new oil-refining and petrochemical plant construction, particularly in Europe and the United States, remains sluggish. As a result of sales activities focused mainly on China, the company secured a large order in March 2022 related to replacement demand for equipment at existing plants.」
Amid weak demand for new plants in Europe and the United States, sales activities focused on China led to the acquisition in March 2022 of a large order related to replacement demand for equipment at existing plants. - FY2022-Q2RestatedAnnual report
「As a result, revenue was ¥2,684.918 million, up 8.7% year on year, and segment profit was ¥680.121 million, down 0.4%.」
In the energy-related business, manufacturing of a large project for China contributed to revenue, while segment profit declined 0.4% year on year. The business continues to be supported by previously ordered large projects, while demand for new plant construction remains weak. - FY2022-Q1WorsenedAnnual report
「As a result, revenue was ¥1,344.343 million, down 12.7% year on year, and segment profit was ¥347.182 million, down 22.4%.」
Although manufacturing of a large project for China contributed to revenue, both revenue and segment profit in the energy-related business fell below the previous-year level. - FY2021WorsenedAnnual report
「As a result, revenue was ¥5,294.008 million, down 5.4% from the previous fiscal year, and segment profit was ¥1,253.140 million, down 24.3%.」
Although the energy-related business secured orders for large projects, capital investment in Europe and the United States stagnated because of COVID-19, and both revenue and segment profit fell below the previous fiscal-year level. - FY2021-Q3WorsenedAnnual report
「For the first nine months of the fiscal year, manufacturing progress on large projects ordered in or before the previous fiscal year supported revenue. However, manufacturing of newly ordered large projects had not yet begun as of the end of the quarter, resulting in revenue of ¥3,761.074 million, down 12.1% year on year, and segment profit of ¥943.684 million, down 27.8%.」
Previously ordered large projects supported revenue, while manufacturing of newly ordered large projects had not yet begun. Revenue and segment profit in the energy-related business fell below the previous-year level. - FY2021-Q2WorsenedAnnual report
「For the first six months of the fiscal year, manufacturing progress on large projects ordered in or before the previous fiscal year supported revenue. However, orders for new projects were sluggish, resulting in revenue of ¥2,471.077 million, down 18.9% year on year, and segment profit of ¥682.881 million, down 27.3%.」
In the energy-related business, previously ordered large projects continued to support revenue, but sluggish orders for new projects caused revenue and segment profit to fall below the previous-year level. - FY2021-Q1RestatedAnnual report
「In the energy-related business, manufacturing progress on large projects ordered in or before the previous fiscal year contributed to revenue. Revenue was ¥1,540.318 million, up 8.0% year on year, and segment profit was ¥447.206 million, down 3.0%.」
The structure in which manufacturing progress on previously ordered large projects supports revenue and profit remains in place. Segment profit remained positive at ¥447.206 million, although it declined 3.0% year on year. - FY2020AdvancedAnnual report
「As a result, revenue was ¥5,593.826 million, up 57.2% from the previous fiscal year, and segment profit was ¥1,656.262 million, up 85.3%.」
Against a backdrop of manufacturing for large projects, price negotiations for materials procurement and production-plan optimisation, segment profit in the energy-related business increased from ¥893.834 million in the previous fiscal year to ¥1,656.262 million. - FY2020-Q3AdvancedAnnual report
「As a result, revenue was ¥4,279.079 million, up 54.4% year on year, and segment profit was ¥1,307.031 million, up 76.3%.」
With procurement of materials for large projects completed, manufacturing progressing, costs reduced through price negotiations and production plans optimized, segment profit in the energy-related business expanded to ¥1,307.031 million. - FY2020-Q2AdvancedAnnual report
「In the energy-related business, procurement of materials for large projects ordered in the previous fiscal year was nearly complete, and manufacturing progressed as scheduled. In materials procurement, increased order volumes led to more favorable price negotiations and substantial cost reductions. In manufacturing, the Company worked to improve production efficiency by optimizing production plans in light of manufacturing processes and delivery schedules, including for projects ordered during the current fiscal year. As a result, revenue was ¥3,045.328 million, up 81.4% year on year, and segment profit was ¥938.898 million, up 124.4%.」
With procurement of materials for large projects completed, manufacturing progressing, costs reduced and production plans optimized, segment profit in the energy-related business expanded to ¥938.898 million. - FY2020-Q1AdvancedAnnual report
「In the energy-related business, procurement of materials and manufacturing for large projects ordered in the previous fiscal year are progressing. In materials procurement, increased order volumes led to more favorable price negotiations and substantial cost reductions. In manufacturing, the Company is working to improve production efficiency by optimizing production plans in light of manufacturing processes and delivery schedules, including for projects ordered during the current fiscal year. As a result, revenue was ¥1,426.301 million, up 104.3% year on year, and segment profit was ¥461.056 million, up 130.8%.」
Procurement of materials and manufacturing for large projects progressed, and lower costs through price negotiations and optimized production plans drove energy-related segment profit to ¥461.056 million, up 130.8% year on year. - FY2019AdvancedAnnual report
「As a result, revenue was ¥3,558.214 million, up 11.9% year on year, and segment profit was ¥893.834 million, up 23.2%.」
The energy-related business expanded segment profit to ¥893.834 million, driven by a focus on competitively advantageous projects, accumulated orders, the restructured production system and improved negotiating power in materials procurement. - FY2019-Q3AdvancedAnnual report
「As a result, revenue was ¥2,770.815 million, up 27.4% year on year, and segment profit was ¥741.461 million, up 47.7%.」
The energy-related business expanded segment profit to ¥741.461 million, up 47.7% year on year, driven by a focus on competitively advantageous projects, accumulated orders, the restructured production system and improved negotiating power in materials procurement. - FY2019-Q2AdvancedAnnual report
「As a result, revenue was ¥1,679.025 million, up 13.0% year on year, and segment profit was ¥418.318 million, up 23.9%.」
The energy-related business progressed with manufacturing of orders already received under the restructured group production system, expanding first-half segment profit to ¥418.318 million. - FY2019-Q1AdvancedAnnual report
「As a result of progressing with the manufacture of projects ordered in the previous consolidated fiscal year, revenue was ¥698.266 million, up 17.7% year on year, and segment profit was ¥199.793 million, up 130.1%.」
The energy-related business expanded segment profit by 130.1% year on year, driven by manufacturing of orders already received and lower costs resulting from the reconstruction of the production system. - FY2018AdvancedAnnual report
「At Naga Nichizo Equipment (Dalian) Co., Ltd., high utilization was maintained throughout the year, and costs related to projects under manufacture were reduced thoroughly. As a result, manufacturing costs for the consolidated fiscal year were substantially reduced, and segment profit was ¥725.590 million, compared with a segment loss of ¥170.027 million in the same period of the previous year.」
High utilization at the Dalian plant and cost reductions were implemented throughout the year, turning the energy-related business from a segment loss in the same period of the previous year to segment profit of ¥725.590 million. - FY2018-Q3First statedAnnual report
「In the energy-related business, manufacturing progressed on large projects ordered in the previous fiscal year and projects ordered during the current period, resulting in revenue of ¥2,174.810 million, up 73.3% year on year. Segment profit was ¥501.909 million, compared with a segment loss of ¥191.833 million in the same quarter of the previous year.」
The fact that the energy-related business turned from a segment loss in the previous year to segment profit of ¥501.909 million, driven by manufacturing of large projects, high plant utilization and lower manufacturing costs, is recorded for the first time as an independent performance theme.