clough were, til a few years ago exclusively mining services, then established an offshore division - and what division gets all the highlights in todays report.......??
ENGINEERING and construction company Clough says the decision to sell its 82% stake in Indonesian coal mining contractor Petrosea will substantially increase cash holdings in the second half of the financial year, after today reporting a $54 million reduction in cash holdings for the first half.
Total revenue for the period ending December 31, 2008 was $469 million, including revenue from joint ventures.
Total revenue from continuing operations gained 24% to $331 million on the back of significant projects, including Woodside’s Pluto LNG jetty, the refurbishment of Apache’s Varanus Island gas plant and hurricane repair works in the Gulf of Mexico, Chevron’s Gorgon LNG project and OMV’s Maari field development.
Earnings before interest and tax rose 78% to $29.7 million.
The company reported new orders received in the period increased 67% to $387 million, and work in hand on continuing operations was at $443 million for the period.
The significant orders in the period included further work on the Gorgon project, asset support work for both Chevron and ConocoPhillips, and work for the vessels.
The major upgrade to the Java Constructor is progressing on schedule and within budget, and is expected to be completed in April 2009, the company said.
“The upgraded vessel will be highly competitive in the market in terms of its capability and cost base,” the company said.
The contractor said due to capital investment spent on the Java Constructor and supporting marine construction equipment, payment of the G1 bond in July and the exclusion of Petrosea cash from the December 2008 balance left cash holdings at a $54 million loss.
“Demand for energy is driven by population growth and therefore well-funded oil and gas projects and OPEX spend will proceed even in this difficult economic time,” Clough chief John Smith said.
Smith said the company was still in discussions with several potential buyers of the Petrosea share.
NMS Price at posting:
12.7¢ Sentiment: Buy Disclosure: Held
