19/02/2009 - 09:55

Clough interim profit falls to $24m

19/02/2009 - 09:55

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Losses from discontinuing operations have hit Clough's bottom line with the engineering and construction company reporting a 30 per cent fall in its interim net profit.

Clough interim profit falls to $24m

Losses from discontinuing operations have hit Clough's bottom line with the engineering and construction company reporting a 30 per cent fall in its interim net profit.

For the six months to the end of December, Clough reported a net profit of $23.8 million, down from the prior corresponding period's $34 million.

In its report, Clough said the result includes losses of $2.9 million from discontinuing operations, comprising PT Petrosea Tbk and related entities, which gives the company an underlying result from continuing operations of $26.2 million.

Earlier this week, Clough confirmed it will sell its 82 per cent stake in Petrosea, which concentrates on the Indonesian coal industry, to allow it to focus on the oil and gas sector.

The renewed focus follows a strategic review.

Also included in the profit result is an income tax expense of $2 million and losses attributable to outside equity interest in controlled entities were $500,000.

On a division by division basis, Clough reported a segment result of $25 million for its oil and gas sector, down from $33.5 million, while the result for the mining and infrastructure arm jumped from the previous year's $484,000 to $5.4 million.

Meanwhile its property division extended its loss from $200,000 to $758,000.

Total revenue from continuing operations, excluding one off business disposals, was up 24 per cent to $331 million.

Clough said the revenue increase was on the back of significant projects including work at Woodside Petroleum's Pluto project, Apache Energy's Varanus Island gas plant and Chevron's Gorgon project.

Earnings before interest and tax was up 78 per cent to $29.7 million while order intake for the period rose 67 per cent to $387 million.

Clough said work in hand on continuing operations is at $443 million.

Cash balance for the period reduced to $54 million mostly due to a bond payment for the disputed G1 project in India and capital expenditure on the Java Constructor upgrade and Marine Construction support equipment.

Shares in Clough were up one cent to 30c at 12:00 AEDT.

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