And FWIW another update on Clough from The Australian.
I wonder if NRW will be involved in any way with Webuild on any of the ex-Clough projects?
And wonder will we get formal word on Mardie or some other new contrac/s before the half year results?
We must??
Last year there was a note about the conference call on February 8 and then an announcement on February 11 parcelling up $110m of new contracts [reminder].
Watch this space?
Italy’s Webuild could avoid up to $2bn of financial claims if a deal for collapsed contractor Clough proceeds, as the companies edge closer to an agreement covering several major Australian energy projects.
Minutes from a creditors’ meeting held on January 25 detail how a mooted buyout of Clough by Webuild for sales proceeds of $38.9m would hand the Italian company over 1000 staff across businesses comprising Clough Projects, E2o and Sharp Resources.
The deal was touted as avoiding claims of between $1bn-2bn from Clough’s clients, with the troubled Snowy Hydro 2.0 expansion named as a project responsible for a large portion of the outstanding sum.
While the documents outline the broad shape of a potential deal between the pair, sources said a pending update to be released by Webuild this week would specify which projects the Italian contractor would ultimately scoop up and those that would be passed up. That is likely to change the final sale proceeds figure with Clough still owing creditors more than $248m.
Webuild has effectively already taken over Clough’s role on the Snowy 2.0 contract, and the bulk of the blue-collar workers are employed and now paid by the joint venture partnership.
The Kerry Stokes-backed Waitsia project in Western Australia, run by Mitsui E&P and Beach Energy, is expected to also be scooped up by Webuild with the companies waiting for an announcement by the Italian company in the next few days.
Blue-collar workers, particularly on the Waitsia project, jumped ship during January with only half of staff turning up for the first bus of the new year to return to the gas project site in the state’s mid-west. Clough chief executive Peter Bennett.
Mitsui and Beach are understood to be prepared for the contract to switch to a reimbursable basis, effectively removing some of the financial risk and boosting the chances of the development being completed on time and budget.
Webuild has indicated its interest in the Perdaman project, according to sources, with negotiations focusing on keeping to the current budget while incentivising early completion of the plant.
Transgrid’s Energy Connect scheme, on the other hand, has received less interest from Webuild amid speculation an external party such as Spain’s Acciona may have interest in teaming up with Clough’s joint venture partner Elecnor on the $2.3bn facility should the Italian company decide not to pursue the development.
The WA engineering firm collapsed in early December after a takeover by Webuild fell through less than four weeks after a deal was initially struck. Sources said 106 white-collar staff had resigned from Clough since the announcement on December 5, with up to a third of those losses comprising engineering employees.
The minutes also pledge that creditors would “avoid the crystallisation of employee entitlements of $30m”. It’s understood a large number of Clough employees remain with the company in the expectation they will leave once overdue staff payments are made.
Deloitte and Webuild originally gave themselves until December 21 to finalise a deal on projects including Waitsia, its contract with Energy Australia on the Tallawarra gas plant and the Australian Navy’s Lombrum base in PNG.
That deadline was then extended to January 25 and then again to January 30.
Deloitte was appointed as voluntary administrators to Clough after Webuild’s December decision to pull out of a deal to buy the company for $500,000, plus the forgiveness of about $350m owed by its South African parent company, Murray & Roberts.
NWH Price at posting:
$2.99 Sentiment: Hold Disclosure: Held
(20min delay)