Australia: Clough Order Book Rises

Engineering and construction company Clough Limited today announced a 9% increase in total revenue to $540m, with underlying earnings from continuing operations of $22.7m for the half-year ended 31 December 2011.

Statutory NPAT reflected a gain on the sale of the Marine Construction business, but was impacted by a further impairment on legacy property holdings.

Clough’s CEO Kevin Gallagher said H1 underlying earnings were in line with market guidance and major contract awards post half year close positions the company for significant future earnings growth.

“While Clough achieved top line revenue growth during the first half of 2011-12, earnings were impacted by previously announced losses on a fixed price contract, and margin dilution on two EPC contracts. Fee renegotiations are progressing and discussions with our clients have been constructive.

“Approximately $650 million in new contracts and contract extensions were secured during the reporting period, including the company’s first major coal seam gas project, the K128 contract on Santos’ Gladstone LNG project in Queensland, INPEX’s Ichthys IPMS project, offshore Darwin, and CSBP’s NAAN3 Ammonium Nitrate plant in Perth.

“To augment an already healthy order book, more than $700 million worth of new contract awards were announced early in 2012, notably the largely reimbursable Hook-up and Commissioning contract and Jetty contract for Chevron’s Wheatstone project, and the Marine Offloading Facility notice of award for INPEX’s Ichthys project. As a result Clough’s order book has increased to a record $2.4 billion, with approximately $850 million in revenue already secured for FY13, and approximately $700 million in revenue already secured for FY14, providing a solid basis for strong earnings growth in the short and medium term.”

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LNG World News Staff, February 23, 2012