Clough Delivers Strong Financial Performance

Perth-based Engineering and construction company Clough has reported that its Total Revenue has increased to $637.7 million, up 22%, with Profit before Interest and Tax of $56 million, an increase of 74%.

Net Profit after Tax stands at $52.4 million, lower than $66.6 million last year, which included a contribution from the sale of Shedden Uhde and Clough Engineering & Maintenance (CEM) businesses of $32.1 million.

Net Profit after Tax from continuing operations consisted of $45.1 million, and order intake was up 39% to $714 million.

Commenting on the performance, CEO John Smith noted, "These are an excellent set of results given the challenges thrown up by the economic environment. Eliminating the 2007/08 one-off gain on the sale of the Shedden Uhde and Clough Engineering & Maintenance businesses, the Net Profit after Tax is significantly improved which puts us in a position both to pay an increased dividend and to reinvest in the business."

Smith continued, "Looking forward the outlook is mixed with the economic downturn having caused a lag in customer's commitments; however, in this region, we have a number of major projects which we expect to proceed.

"The Order Book does not yet include a number of significant prospects where Clough is positioned to secure a substantial order value in the short term. These include the PNG Upstream Infrastructure for Exxon, the EPCM phase of Gorgon where the final investment decision is anticipated within the next quarter and the engineering phase of a major domestic gas project."

Smith concluded, "The sale of Petrosea, completed on July 6 and which realized gross proceeds of $114.5 million, was a result of a strategic decision to focus on the oil and gas sector. In the coming year, you will see us seeking to strengthen our engineering in both gas process and subsea, our construction capability particularly to participate in domestic LNG projects both conventional and Coal Seam Gas and to expand our presence geographically across the Asian oil and gas region."