Offshore staff

PERTH, Western Australia -- Clough Ltd. outgoing Chairman Jock Clough reported another disappointing loss this year, primarily a result of provisioning on two Indian EPC contracts, G1 and Panna.

"Negotiations are continuing with our clients to resolve the outstanding issues on these contracts," Cluogh said.

The Australia-based engineering and construction company suffered a net loss of $11.5 million for the year ended June 30, 2006.

The remainder of the business is performing strongly and in line with expectations. In particular, the Services/EPCM, Petrosea and Property businesses reported continued growth. Excluding India, the Projects/EPC line of business is also on track, Clough said.

Clough's turnover rose by 46.5% to $705.5 million from $481.8 million a year ago, when it suffered a net loss of $44 million.

The outlook for the 2006/07 period is positive, with less than 20% of anticipated turnover and earnings expected to be derived from EPC fixed price contracts, Clough said.

Jock Clough handed the chairmanship of the company to Mike Harding following the annual general meeting Nov. 8.

11-09-06