Perth-based Clough has announced a $50.1 million net profit after tax for the 2010 financial year and that former Woodside executive Keith Spence will be taking over as chairman later this year.
Perth-based Clough has announced a $50.1 million net profit after tax for the 2010 financial year and that former Woodside executive Keith Spence will be taking over as chairman later this year.
The engineering and construction company reported underlying earnings before interest and tax of $63.6 million, up 13 per cent.
The company's total revenue for continuing operations increased by 26 per cent to $805 million and it closed its order book at $1 billion.
"In the past year Clough has achieved a strong operational result whilst continuing to build our order book with world class LNG projects," said Clough CEO John Smith.
Looking to the future, Mr Smith said, "Current oil prices and recovery in the financial markets will, we expect, stimulate offshore oil and gas projects and return the subsea sector to growth."
Meanwhile, Mr Spence will replace Mike Harding who will step down as chairman at the company's AGM in October.
Current non-executive director Keith Spence will take over as chairman.
Chief financial officer Neil Siford will also join the Board as an executive director.
See full company statement below:
Engineering and construction company Clough Limited (ASX:CLO) today announced a strong performance for the 2009/10 financial year, recording improved financial results.
Underlying earnings before interest and tax increased by 13% to $63.6m, total revenue from continuing operations increased by 26% to $805.0m, and order book closed at $1bn. Cash holdings increased in the year to end at $107m.
2009/10 Highlights:
- Continuing operations:
o Total revenue increased 26% to $805.0m.
o Underlying earnings before interest and tax, up 13% to $63.6m.
o Net profit after interest and tax (NPAT) continuing operations up 4% to $51.1m.
- Statutory NPAT of $50.1m compared to $52.4m in 2008/09.
- Work in hand at 30 June 2010 totalled $1.0b.
- Acquisition of 31.3% Forge shareholding completed; cash investment of $55m in April 2010. Strategic Alliance implemented.
- Completion of Petrosea sale in July 2009.
- Final settlement achieved with the Oil and Natural Gas Corporation in December 2009, cash collected.
- Strategic investment in Ocean Flow International, Peritus, Clough Helix Joint
Venture and Clough Seam Gas.
- Cash holdings increased to $107m; net cash of $51.6m.
- Continued improvement of HSE performance, LTIF of 0.36.
Commenting on the performance, Clough's CEO, John Smith stated:
"In the past year Clough has achieved a strong operational result whilst continuing to build our order book with world class LNG projects. Major awards in the period include the EPCM contract on Chevron's Gorgon LNG Project (as part of the Kellogg Joint Venture) and the Upstream Infrastructure and EPC4 contracts on Exxon's PNG LNG project. In the same period we resolved our dispute with ONGC and made significant progress in the implementation of our strategy as an engineering-led EPC contractor to the oil and gas industry".
A number of key acquisitions and investments were made during the period, the most high profile being a major shareholding and strategic alliance with the Forge
Group, formalised in April 2010.
Clough Seam Gas, established in May 2010, sees Clough enter the coal seam gas market with a team of industry experts dedicated to providing EPC services to the promising coal seam gas industry in Queensland.
Investments to strengthen Clough's participation in the subsea and marine construction sector included the acquisition of Ocean Flow International, a Houston based deepwater engineering specialist, and investment in Peritus International, a subsea, pipelines and floating structures engineering specialist, established in January 2010. Both businesses are currently performing to plan.
The Clough Helix Joint Venture, announced in February 2010, offers a wide range of subsea services from well intervention to subsea construction and the Normand Clough has mobilised for the JV's first project for China National Offshore Oil Corporation in the South China Sea.
Looking to the future, Mr Smith commented "Current oil prices and recovery in the financial markets will, we expect, stimulate offshore oil and gas projects and return the subsea sector to growth. The prospect for Australian gas to provide an increasing proportion of world LNG supply looks bright. We will continue to work hard to equip Clough to deliver in these two important sectors."
