Loss and Litigation Risks in Overseas Infrastructure Projects
First written in FY2018-Q3. 6 of 17 entries say "Restated". Latest entry: FY2025-H1.
Marubeni moved to the "Worse" side of this theme in 2021, 5 years after the typical company in this theme (2016).
The whole theme swung hardest in 2019: 3 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「Higher earnings in the wholesale and retail power business and the reversal of the contract loss provision for the Taiwan power plant EPC (engineering, procurement and construction) project recognized in the previous year」
Gross profit in the Power segment improved year on year due to the reversal of the contract loss provision for the Taiwan power plant EPC project and higher earnings in the wholesale and retail power business. - FY2024MitigatedAnnual report
「Profit for the period (loss) improved by ¥68.0 billion year on year to a profit of ¥40.3 billion, due to higher earnings in the overseas wholesale and retail power business and a year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC (engineering, procurement and construction) project, among other factors.」
Although provisions for additional costs remain in the Taiwan power plant EPC project, the Power segment improved from a loss in the previous fiscal year to a profit of ¥40.3 billion. - FY2024-Q3MitigatedAnnual report
「Quarterly profit increased by ¥3.2 billion year on year to ¥43.3 billion, despite the recognition of provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC (engineering, procurement and construction) project, due mainly to higher earnings in the overseas power generation business.」
Although provisions for additional costs continued to be recognized in the Taiwan power plant EPC project, quarterly profit in the Power business increased by ¥3.2 billion year on year due mainly to higher earnings in the overseas power generation business. - FY2023MitigatedAnnual report
「Power Profit for the period (loss) improved by ¥68.0 billion year on year to a profit of ¥40.3 billion, due to higher earnings in the overseas wholesale and retail power business and a year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC (engineering, procurement and construction) project, among other factors.」
The Power segment improved from a loss in the previous fiscal year to a profit of ¥40.3 billion, mainly due to a decrease in provisions for additional costs in the Taiwan power plant EPC project. - FY2023-Q3MitigatedAnnual report
「Gross profit (loss) improved by ¥28.4 billion year on year to a profit of ¥25.2 billion, due to higher earnings in the overseas wholesale and retail power business and a year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC (engineering, procurement and construction) project.」
A year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC project improved gross profit in the Power segment, including overseas infrastructure projects, from a loss to a profit of ¥25.2 billion. - FY2023-Q2MitigatedAnnual report
「Gross profit (loss) improved by ¥28.4 billion year on year to a profit of ¥25.2 billion, due to higher earnings in the overseas wholesale and retail power business and a year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC (engineering, procurement and construction) project.」
A year-on-year decrease in provisions for additional costs arising from construction delays and other factors in the Taiwan power plant EPC project improved gross profit in the Power segment from a loss to a profit of ¥25.2 billion. - FY2022MaterialisedAnnual report
「During the current consolidated fiscal year, the Company recognized a loss of ¥36,059 million, including an allowance for contract loss, as a result of revising the additional costs expected to arise due to construction delays and other factors in a power plant construction contract project in Taiwan.」
A loss of ¥36.059 billion was recognized on a year-to-date basis due to construction delays and other factors in the Taiwan power plant construction contract project. - FY2022-Q3WorsenedAnnual report
「During the nine-month period ended the current third quarter, the Company recognized a loss of ¥35,611 million, including an allowance for contract loss, as a result of revising the additional costs expected to arise due to construction delays and other factors in a power plant construction contract project in Taiwan.」
The risk associated with the overseas infrastructure project materialized as a ¥35.611 billion loss resulting from construction delays and other factors in the Taiwan power plant construction contract project. - FY2022-Q2MaterialisedAnnual report
「Gross profit (loss) deteriorated by ¥14.0 billion year on year to a loss of ¥3.2 billion, due to a one-time loss on an overseas EPC project.」
The loss relating to an overseas infrastructure project was actually recognized as a one-time loss on an overseas EPC project in the cumulative second-quarter results of the Power segment. - FY2021-Q3RestatedAnnual report
「As of the end of the current third-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reiterated the explanation that pending lawsuits relating to damages and the collection of receivables in overseas infrastructure projects remain outstanding and that their outcome cannot be predicted, except for certain projects. - FY2020RestatedAnnual report
「As of the end of the current consolidated fiscal year, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reconfirmed that losses and pending lawsuits relating to overseas infrastructure projects remained outstanding at the fiscal year-end. - FY2020-Q3RestatedAnnual report
「As of the end of the current third-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reconfirmed the disclosure that pending lawsuits relating to damages and the collection of receivables in overseas infrastructure projects remain ongoing and that their outcome cannot be predicted, except for certain projects. - FY2020-Q1RestatedAnnual report
「As of the end of the current first-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reconfirmed the disclosure that pending lawsuits relating to damages and the collection of receivables in overseas infrastructure projects remain ongoing and that their outcome cannot be predicted, except for certain projects. - FY2019-Q3RestatedAnnual report
「As of the end of the current third-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reconfirmed the disclosure that pending lawsuits relating to damages and the collection of receivables in overseas infrastructure projects remain ongoing and that their outcome cannot be predicted, except for certain projects. - FY2019-Q2RestatedAnnual report
「As of the end of the current second-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
Reconfirmed the disclosure that pending lawsuits relating to damages and the collection of receivables in overseas infrastructure projects remain ongoing and that their outcome cannot be predicted, except for certain projects. - FY2018MaterialisedAnnual report
「The Company has also recognized losses on overseas infrastructure projects.」
Losses on overseas infrastructure projects were actually recognized in “Other gains and losses” for the current fiscal year. Pending lawsuits relating to damages and the collection of receivables were also disclosed. - FY2018-Q3First statedAnnual report
「“Other gains and losses” in the condensed quarterly consolidated statement of comprehensive income for the nine-month period ended the current third quarter includes losses on overseas infrastructure projects. ... As of the end of the current third-quarter consolidated accounting period, there are also pending lawsuits and other legal proceedings relating to damages and the collection of receivables in overseas infrastructure projects. Except for certain projects for which losses have been recognized, it is impossible to predict the outcome at this time.」
It was stated that losses on overseas infrastructure projects were included in profit or loss for the quarter and that pending lawsuits relating to damages and the collection of receivables also existed.