Nikkiso raised its full-year operating profit forecast from ¥16.5 billion to ¥19.7 billion and disclosed that approximately ¥2 billion of the increase comprises one-off profit. Although the company has cryogenic pumps for LNG applications, the entire increase cannot be attributed to the impact of LNG demand.
On 14 August 2024, Nikkiso announced that it would raise its full-year operating profit forecast by ¥3.2 billion, from ¥16.5 billion to ¥19.7 billion. The company explained that the increase includes approximately ¥2 billion in one-off profit, meaning that the impact of one-off items must be assessed alongside ongoing earnings improvement.
The company operates businesses that include cryogenic pumps for LNG applications, but the impact of other businesses, such as aircraft components and medical equipment, must also be assessed. Although the share price rose at the same time as the earnings announcement, the entire increase cannot be explained solely by the contribution from LNG demand.
Based on earnings information, the editorial policy is to compare 20 other companies with links to the LNG supply chain across 5 categories, while avoiding expanding the data before the details of each company’s individual contracts and order status have been confirmed. The causal relationship between market movements and earnings remains subject to the disclosure of formal information in the future.
The breakdown is expected to become clearer through segment information in earnings reports, the impact of foreign exchange rates and expense revisions. A simple comparison of each company’s LNG-related contribution is considered difficult.