Clough issues full year profit warning

WA engineering and construction group Clough has warned its full-year profit is likely to be significantly lower than forecast.

The company attributed the lower result to bad weather at Chevron's Gorgon LNG project on Barrow Island, access problems at the Exxon C1 project in PNG and a sharp increase in tendering activity in its Clough Seam Gas division, which increased costs.

The company gave a revised full year EBIT forecast in a range of $46 million to $51 million with NPAT of between $38 million and $43 million.

This contrasts with previous guidance of EBIT between $50 million and $60 million and net profit of between $40 million and $50 million.

Clough chief executive John Smith said the weather disturbance on Barrow Island, with seven evacuations this year had been frustrating for all concerned.

"With the cyclone season behind us, productivity will improve," he said.

"In difficult conditions in PNG our 2000 people on the ground have achieved significant progress and have now worked over six million man-hours without a lost time injury.

"Our team now has unhindered access to all sites."

Clough shares were off one cent, or 1.27 per cent, to 78 cents at 1.40am

 

(http://au.news.yahoo.com/thewest/business/)