Clough DORIS, Ichthys Execute Binding Contract

- Clough DORIS, Ichthys Execute Binding Contract

Thursday, September 08, 2011
Clough Ltd.

Clough announced the execution of a binding contract between the Ichthys Joint Venture and Clough DORIS Joint Venture, for the Ichthys LNG Project Offshore Integrated Project Management Support Services (IPMS), which has a limitation on spending until attainment of FID. Receipt of the Letter of Intent for this circa A$250 million contract was announced by Clough on August 9, 2011.

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Clough to Sell Offshore Marine Business

- Clough to Sell Offshore Marine Business

Monday, August 08, 2011
Clough Ltd.

Clough has agreed to sell its offshore Marine Construction Division to SapuraCrest Petroleum Berhad (SapuraCrest), a company listed on the Malaysian stock exchange, for gross proceeds of approximately AUD 127MM in cash. The companies have entered into a conditional Master Sale and Purchase Agreement with certain conditions precedent.

Clough's offshore Marine Construction Division includes the derrick lay barge, Java Constructor, and associated marine construction equipment. Also included will be Clough's interest in the Clough Helix Joint Venture, which operates the chartered Normand Clough vessel, and its investments in specialist engineering businesses, OFI and Peritus. Relevant contracts including the Chevron Gorgon Domestic Gas pipeline project are proposed to be novated.

Post transaction the division will continue to operate from Perth with a continuing focus on both the Australian and regional markets. Clough will continue to provide a number of back office services to the business for a period of two years.

The sale will see Clough exit the asset intensive offshore marine construction market. Clough CEO, John Smith said, "While Clough has enjoyed a long history of successfully executing marine construction projects, it is a sector where significant capital investment is required to compete with the larger regional and global players. Our results have been lumpy in this division and consistency requires scale, flexibility of assets and broad geographic coverage. We believe SapuraCrest will bring these characteristics and we wish them and the skilled workforce who will transfer every success for the future. Opportunities abound in the Australian gas and mineral sectors. Our strategy remains that of Engineering led EPC and this transaction leaves Clough with significant net cash and with capacity for further investment."

The sale is subject to satisfaction of a range of conditions precedent, including SapuraCrest obtaining Malaysian Central Bank and shareholders' approval, the consent of relevant clients and partners, the transfer of certain marine construction division staff, and Clough receiving approval from its debt funders. It is anticipated that satisfaction of these conditions precedent will take up to three months. As a result, completion of the sale is currently expected to occur in Q2 of the 2011/12 financial year.

The Marine Construction Division reported an underlying loss of AUD 7.6MM in the 6months to December 31, 2010 after reporting underlying earnings of AUD 24.1MM in the year ended June 30, 2010. Based on current estimates, the one off profit on the sale is expected to be approximately AUD 8MM. The net increase in cash held by Clough will be approximately AUD 50MM after full repayment of Clough's debt facility with RBS and allowing for cash held by the division.

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Clough, SapuraCrest In Talks over Construction Business

- Clough, SapuraCrest In Talks over Construction Business

Wednesday, July 06, 2011
Clough Ltd.

Clough confirmed that it is currently in discussions with SapuraCrest Petroleum Berhad (SapuraCrest) regarding its Marine Construction business. These discussions may result in a sale transaction, cooperation and/or other business arrangement.

While the parties continue to make good progress with their discussions, no binding arrangements have been entered into and there is no assurance that any transaction

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Board Members at Clough Wave Goodbye

- Board Members at Clough Wave Goodbye

Friday, July 01, 2011
Clough Ltd.

Clough announced that Non-Executive Directors Brian Bruce and Roger Rees have stepped down from Clough's Board, effective immediately. Mr. Bruce, who has been a Clough Board member since November 2004, retired as CEO of Murray & Roberts on 30 June 2011. Mr. Rees, who joined the Clough Board for the first time in November 2005, retired as Financial Director of Murray & Roberts at the same time.

Henry Laas, who was appointed as CEO designate and successor of Brian Bruce at Murray & Roberts on 1 April 2011, will replace Brian Bruce as Non-Executive Director to the Clough Board. Murray & Roberts' newly appointed Financial Director, Cobus Bester, will replace Roger Rees.

"I would like to thank Brian Bruce and Roger Rees for the enormous contribution they have made to Clough," said Clough's Chairman Keith Spence.

"Brian is Clough's longest serving Board member, and during his seven year tenure his strategic thinking, leadership and international expertise has helped successfully transform Clough into the world class engineering and construction business we see today.

"We have also benefited greatly from Roger's extensive international corporate finance experience. His input into due diligence studies, acquisitions and disposal of companies at Clough over his six year tenure has been invaluable.

"I wish Brian and Roger all the very best for the future and look forward to working with Henry Laas and Cobus Bester to achieve the next phase of growth at Clough."

Mr. Laas holds a Bachelor of Engineering (Mining) degree from the University of Pretoria and an MBA from the University of the Witwatersrand. He has extensive experience in the mineral resources and mining contracting sectors. As Managing Director of Murray & Roberts Cementation and its predecessor RUC Mining Contractors over 10 years since March 2001, he played an instrumental role in the expansion of the Cementation Group global footprint.

Mr. Bester is a Chartered Accountant with over 22 years experience in the construction and engineering industry. He was the group Financial Director for Basil Read and Concor Limited for 3 and 6 years respectively and was appointed Managing Director of Concor in 2005. Concor was acquired by Murray & Roberts in 2006 and subsequently delisted from the JSE Limited. Mr. Bester has been a Director of Murray & Roberts Limited since 2007.

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Clough Wins Construction Work at AU Macedon Proj.

- Clough Wins Construction Work at AU Macedon Proj.

Friday, June 24, 2011
Clough Ltd.

Clough announced the award of a circa A$45 million contract to the STREICHER-Clough Joint Venture (SCJV) for pipeline construction work on the Macedon Project.

SCJV is a 50/50% joint venture between Clough and Germany's pipeline engineering and construction specialists, STREICHER Group.

The scope of work includes horizontal directional drilling, construction of an onshore wet gas pipeline and sales gas pipeline and umbilical installation. Work is due to commence in June 2011 with completion anticipated in May 2012.

"We are delighted to be working on this important Western Australian project," said Clough's CEO John Smith.

"We will utilize resources and expertise from our Clough Seam Gas division and partner STREICHER to deliver the best possible project outcomes."

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Clough Names New CEO

- Clough Names New CEO

Thursday, June 23, 2011
Clough Ltd.

Clough announced Kevin Gallagher will be appointed to succeed John Smith as Chief Executive Officer of Clough. Mr Gallagher will take up his appointment with Clough towards the end of August.

Mr Gallagher brings 20 years experience in oil and gas operations, including 13 years experience with Woodside Energy, where he has led oil and gas operations in Australia, the USA and North and West Africa. Mr Gallagher currently holds the positions of Executive Vice President, North West Shelf Business Unit and CEO of North West Shelf Venture at Woodside. During Mr Gallagher's tenure Woodside's North West Shelf LNG project achieved new revenue and production records.

"After an extensive local and international search, I am delighted to welcome Kevin Gallagher as Clough's new CEO," said Clough's Chairman Keith Spence.

"Kevin has held senior management and executive positions on many high profile Australian oil and gas projects in the past 11 years. He has an established track record in strategy development, execution, and building and motivating high performance teams. He also has significant experience working in complex contractual environments.

"I would also like to acknowledge and thank John Smith for his contribution during his four years as CEO of Clough. During his tenure John successfully guided Clough through turbulent times to return the company to profitability. John leaves the company in an excellent position, with a strong balance sheet and a robust order book of world class projects.

"Under Kevin's leadership I believe we can build on this strong market position to achieve the next phase of growth."

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