This result was an improvement on the previous corresponding period, when the engineering giant posted losses totalling more than $54 million.

Clough said the fiscal 2006 result was impacted by further losses and provisions on the two Indian contracts announced in the first half results. In February, the company posted $16.7 million of losses due to delays and budget overruns at the Panna and G1 oil and gas projects.

Meanwhile, sales growth in the 2005-06 financial year increased 46.5% to reach $922 million, while work in hand was about $809 million.

Clough chief executive and managing director David Singleton said the impact of the Indian projects was disappointing.

“Over the past year we have continued our focus on rebuilding Clough into a profitable business,” he said.

“However, the negative results from the Indian contracts have clearly indicated the need for further contract and project execution improvements.”

But Clough said the rest of the business, including its services/EPCM, property and Petrosea units, were performing strongly and in line with expectations.

Clough added that it has booked a further $150 million orders since the end of 2005-06.

“I am pleased that the company has returned to profit in the second half of the year in spite of our problems in India,” Singleton said.

“The quality of our order book in terms of risk is the best it has been for many years and we enter the new financial year with a sense of real optimism.”