Clough-Unithai Engineering Limited (CUEL), which is 33% owned by the Perth contractor, will design and build three wellhead platforms and associated intra-field subsea pipelines. This brings to US$132 million that the CUEL venture has won since October 2000.

"We continue to have optimism for more new contracts in the oil and gas sector as oil prices stay above the US$20 mark," said outgoing managing director, Dr Brian Hewitt.

CUEL's onshore construction operations are located in Unithai's shipyard, which is the largest offshore fabrication centre in Thailand.

Analysts have welcomed the strong operating result, which saw a net A$113 million cash position, against $14.4 million in debt. The $4.9 m loss contrasts with the previous period's $13.4 million profit.

"During the half it generated 42 million in cash flow, paid a dividend and paid off significant amounts of debt," said Peter Strachan of DJ Carmichael stockbrokers.

Clough has housed a number of its troublesome projects inside the newly created Mining and Infrastructure division, which posted a $14m loss on $147m turnover. Problems in Asian onshore projects were evident in the hydrocarbon facilities division, which only made $6m on $239m turnover.

However, the dilutory effects of the Clough dividend reinvestment scheme, issuing stock instead of cash, drew fire.

"It's stupid for a company to consider a dividend reinvestment scheme when it have so much cash - what's the point? The fact that the Clough family (the major shareholder) has said they would take their stock at no discount to market holds no water either - the current 42 cent share price is discounted enough already from the $1.15 it was previously," said Strachan.

"It's not a good use of cash."