Clough to grow marine construction biz

Engineering and construction group Clough says it expects significant growth over the next financial year on the back of rapid expansion of its marine construction order book, after reporting a $10.9 million dip in profits.

Clough reported an interim net profit of $19.5 million, down from $30.4 million in the previous half year.

Total revenue for the half year ended December 31 was $524.9 million, significantly ahead of the comparative period on the back of increased project activity.

Net profit was held back by a $7.6 million loss in Clough's marine construction business, Clough's half-year results statement said.

Including a $4 million impairment in Clough's discontinued property business, net profit attributable to Clough shareholders for the half year was $15.3 million.

"The results were in line with expectations with our short term profit affected by a low level of activity in the marine construction sector and by the investments in organic growth in coal seam gas and our engineering capability," Clough chief executive John Smith said.

"However in the half we have continued to build order book, in particular in the marine construction sector, which will underpin activity through 2011/12 and beyond.

"Pleasingly we are experiencing a high level of tender activity with $1bn of tenders outstanding and a further $2.4bn of opportunities identified for tendering in the next 12 months.

"With the combination of the record level of work under contract and the tender pipeline we expect growth in 2011/12."