(Sharecast News) - Lamprell shares tumbled on Tuesday as the oil and gas services group warned of "severe liquidity constraints" and said creditor payments were being deferred to maintain liquidity.
The company said 2021 was a key year for its major projects with significant, near-term working capital requirements, which have put severe pressure on the balance sheet and require additional funding to complete.
To fulfil near-term working capital needs and meet its medium-term strategic objectives, Lamprell said it must complete a new funding arrangement of €120-150m by the end of the third quarter, either through a combination of debt and equity, or via a larger equity raise.
"A raise of capital in Q3 2021 is required to strengthen the group's balance sheet. Until this injection of funding is secured, a level of extended credit will continue to be required to maintain liquidity," it said.
The group also said it is in "advanced stages" of negotiation with banks to secure project finance facilities.
"While approval is expected by the board, there can be no certainty of the project finance facilities being concluded," it said.
The warning from Lamprell came with its full-year results, which showed that year-on-year revenue grew 30% to $338.6m, while net losses narrowed to $53.4m from $183.5m the year before.
At 1030 BST, the shares were down 22% at 52.90p.
25 Jun 2015 08:33
