* $105 mln 2012 loss vs $74 mln 2011 profit
* Sees gradual return to profit this year
* Order book at $1.3 bln, bid pipeline of $4.1 bln
* No 2012 dividend
* Shares up 4.4 pct
By Lorraine Turner and Rhys Jones
LONDON, March 21 (Reuters) - Oil rig maker Lamprell charted the "back to basics" strategy it says will return it toprofitability by 2014 after swinging to a $105 million loss inthe most challenging year in its history.
Rapid growth in recent years prompted the oil servicescompany to expand into riskier areas, such as wind turbinevessels, where operational difficulties led to a series ofprofit warnings last year.
"We probably took on risk that we didn't fully control;getting back to basics is about focusing on the core business,"new chief executive Jim Moffat told Reuters on Thursday.
"The good news is that there is a lot of core businessaround right now; we don't have to shrink," he said, citing theNorth Sea and Middle East.
The FTSE 250 company's 2012 loss of $105 million before taxand exceptional items, against a 2011 profit of $74 million, wasin line with expectations. Revenues fell 8.8 percent to $1.05billion.
Late last year the oil services company said it expected atotal loss of about $105 million, having previously forecast aloss of between $12 million and $17 million.
Nigel McCue stepped down as chief executive in October afterprofits were hit by problems including delays to the delivery oflifeboats for offshore wind farm installations.
"2012 was unquestionably the most challenging year inLamprell's history," Chairman John Kennedy said in a statementon Thursday.
"The board expects 2013 to be a recovery year, with stablerevenues as compared to 2012 and a gradual return toprofitability during the year."
TAKING ITS MEDICINE
The Dubai-based company was stung earlier in the week with a2.4 million pound ($3.6 million) fine from Britain's FinancialServices Authority for failing to keep the market fully informedof its deteriorating financial position last year.
The regulator said the penalty for Lamprell was the firstunder tougher new policy for such rule breaches, basing fines ona company's market capitalisation.
CEO Moffat was sanguine on the unprecedented fine, saying:"The fine simply draws a line under the whole thing ... we feltit was more appropriate as a management team to simply acceptour medicine and move on."
Lamprell has a current order book of $1.3 billion and a bidpipeline of $4.1 billion, with 85 percent of 2013 booked andmore than 30 percent booked for 2014, Moffat said.
Shares in Lamprell, which have fallen 57 percent over thepast year, were up 4.4 percent at 0943 GMT, outperforming a 0.3percent decline in the FTSE 250 index.
"For investors prepared to look forward to 2014, we believeLamprell still offers significant upside," Liberum analystssaid. "The outlook statement is positive, emphasising the returnof the stability to the business, a focus on core capabilitiesand the ongoing support from customers."
Lamprell, which confirmed the permanent appointment ofinterim Chief Financial Officer Frank Nelson, also announcedthat there would be no full-year dividend and that it wouldreview its payout policy once the business returns toprofitability.
