Clough offers hope for LNG

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A rare treat this morning for investors with mining services firm, Clough, announcing a profit upgrade. From the AFR:

Strong contract performance and cost efficiency and productivity measures have seen the engineering and project services company upgrade fiscal 2013 earnings before interest and tax expectations to $90 million on revenue of $1.5 billion.

…Clough has benefited from its exposure to the more defensive oil and gas space, with mining and minerals contractors hit the hardest following the slump in commodity prices.

However oil and gas focused contractor Worley Parsons joined the likes of Transfield Services, Boart Longyear and UGL in issuing earnings downgrades last month, which called into question the relative safety of oil and gas.

 

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

    • Clough’s being doing it tough for years now, I think beccause of that they run a tighter ship than most. No guarantee of course.

  1. I don’t know that this means much given it is clear that the mining capex cliff will proceed the LNG capex cliff by a 1-2 years.

    There have been no new major LNG projects announced in the last 6 months – I guess we will find out how ‘defensive’ LNG is.

  2. Alex Heyworth

    Clough also manage shutdowns and decommissioning, so they can benefit from a slump as well as a boom.