Offshore staff
PERTH, Western Australia -- Australian engineering group Clough Ltd. has finished work on ONGC's Panna field offshore India. Though this project has reached completion, the company says it expects the independent mediation process dealing with completion issues on the G1 contract to begin within the next two months.
According to Clough, the company's net debt increased to $84.96 million for the six months ending Dec. 31, 2006, from $48 million in the first half of 2006. The loss was primarily driven by cash outflows on the Panna and G1 contracts, legal costs related to the BassGas arbitration process, and financing of existing projects in the property business, the company says.
"Petrosea and Services & Construction again delivered earnings growth. However, the performance in our offshore oil and gas business is the most pleasing because we are now executing projects successfully in this major part of Clough's operations," says Clough chief executive John Cooper.
Clough expects the arbitrator to deliver findings on the dispute with Origin Energy on the BassGas contract before the end of this year. Clough says it remains committed to achieving a resolution to this dispute and finding the best possible outcome for shareholders.
2/27/2007
