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The services group’s shares tumbled 24 per cent after it said profits had been overstated by up to $40 million. It also slashed its full-year earnings guidance, blaming weather disruption and supply chain costs.
The costs of building the $6 billion Snowy 2.0 hydropower project are expected to soar further after contractor Clough collapsed, with its administrators scrambling to raise money to continue energy and infrastructure projects around Australia.
Webuild will not proceed with a proposed acquisition of engineering group Clough, forcing the Perth-based contractor building Snowy 2.0 into administration.
The proposed sale of Clough to Webuild, which was struck in early November, will put the Italians in charge of building the $6 billion hydropower project Snowy 2.0.
The construction giant says its working capital requirements are ‘especially acute’.