(Alliance News) - Oilfield services firm Lamprell PLC is looking to win new work in the Middle East and Europe, it said Thursday, after a 31% fall in interim revenue.
Lamprell posted revenue of USD106.4 million in the six months to June, down 31% year-on-year. The pretax loss widened significantly, to USD51.9 million from USD20.9 million.
The firm has faced a tough past two years. Major problems at the East Anglia One wind farm project significantly hindered 2017 financial performance, while 2018 was pulled back by low levels of activity in the oil and gas industry.
East Anglia One is now essentially finished, with Lamprell saying Thursday that parties are in discussions over the commercial close out of the project. Elsewhere, the Moray East project in Scotland is on track and on budget.
Chief Executive Christopher McDonald said: "I am pleased to see work returning to our yards with both Moray East project ramping up and the rig refurbishment segment providing a steady flow of projects.
"Our focus and effort in delivering strategic opportunities in Saudi Arabia has intensified since being added to Saudi Aramco's LTA list, and I am confident, despite delays, we will see results from this effort. The renewables industry continues to demonstrate encouraging growth, and we are also beginning to see early but solid interest in the newbuild jack-up rig market. These developments will underpin our gradual recovery over the coming years."
As of June 30, Lamprell had a bid pipeline of USD6.3 billion, broadly flat from December, with around two-thirds of this in the Middle East. Some USD2 billion of that pipeline is in renewable energy, with two work bids submitted, and Lamprell will find out if the bids are successful in early 2020.
Lamprell reiterated 2019 revenue guidance of between USD275 million and USD300 million, held back by delays by core project awards. The high end of that range requires new work wins.
In 2018, revenue was USD234.1 million, down 37% on the year before. Lamprell previously had narrowed its 2019 guidance from an earlier forecast of USD250 million to USD400 million.
Shares were 2.4% lower on Thursday morning in London at 47.45 pence each.
