To Our Stakeholders
We would like to convey our heartfelt appreciation for the understanding by all stakeholders of our JGC Group business activities and the steadfast support shown us.
In the plant EPC market in fiscal 2018, a recovery in crude oil prices after several years of stagnation has led to tangible signs that oil majors and state-run oil companies are taking a different stance on capital investment. Client investment is also resurgent in large-scale LNG projects, spurred by higher demand in China, India, and Southeast Asia. October 2018 saw the final investment decision (FID) in the LNG Canada project. The award of this project to our joint venture is another sign of such trend.
The current return to plant market growth is precisely the time when JGC must accelerate moves toward stable performance and greater corporate value. Specifically, this involves shifting from a management focus on oil and gas EPC business, which remains sensitive to crude oil price fluctuation, to higher earning capacity from overseas infrastructure, domestic EPC business, and functional materials manufacturing. We must coordinate this business in pursuit of both stronger revenue and greater stability for the JGC Group as a whole.
As announced in November 2018, JGC is in the process of reviewing the transition to a holding company as our new group management structure, which would take effect on October 1, 2019. We have determined that such management structure will enable us to establish the diversified corporate group we envision and steadily increase corporate value.
To keep stakeholders informed of the broad value provided by the JGC Group, the 2018 edition of the JGC Report covers business activities, future management strategies, specific business initiatives, and developments in environment, social, and governance (ESG) spheres in greater breadth and depth than ever. We hope this gives stakeholders insight on how the JGC Group is uniquely positioned to meet our goals in both economic and societal terms.
Thank you for your continuous support. We remain committed to meeting the expectations of our shareholders, clients, business partners, local communities, and other stakeholders.
Chairman and Chief Executive Officer (CEO)
President and Chief Operating Officer (COO)