The loss amounted to $105.3 million. Clough also reported earnings for ongoing operations of $25.4 million and a turnover of $761.2 million, which was in line with company forecasts.
Clough said this was due to lower activity on large oil and gas contracts like G1 and Panna, which were at the height of their activity in 2006.
To isolate the impact of the disputes on the G1 oil and gas contract and the BassGas contract to the 2007 financial year, Clough has taken provisions of $130.7 million in the year-end accounts.
In July, Clough wrote off $110 million against the two contracts.
Newly appointed chief executive John Smith said the result reflected a year of mixed fortunes for the company.
“Clough’s result on ongoing operations once again improved over the period, demonstrating that current projects are being successfully delivered,” he said.
“However, having achieved yet another year of underlying profit growth, this had to be offset by taking appropriate provisions on the two prior year contracts.”
Across Clough’s individual business units, Services and Construction continued to grow with an increase in earnings of 16% to $11.3 million.
This was due to increased work scope and contract extensions on engineering support and construction contracts.
The Offshore Oil and Gas business delivered earnings of $20.4 million before the provisions on the G1 and BassGas contracts.
Indonesian subsidiary Petrosea experienced earnings growth of more than 30% to $12 million after the exclusion of a one-off contract settlement in 2005-06.
Moving forward, Clough will undertake a capital raising to help the company deal with the financial implications of the provisions and to finance growth.
Clough plans to raise $5.6 million through the placement of new shares at 36.8c each.
Despite a rocky year, Smith predicts a recovery going into the 2008 financial year.
“With the two prior year contracts isolated and the recapitalisation agreed, Clough is well placed to implement a focused growth strategy,” he said.
“The board has backed a vessel investment program to allow delivery of a complete service in marine construction and we are strengthening our team in LNG.
“We will seek to build on our engineering led asset support contracts with Woodside and ConocoPhillips – 2007-08 is about transition, delivery and predictability.”
