(Alliance News) - Oil rig construction firm Lamprell PLC on Tuesday reported an uplift in its half year revenue but said it expects a "slightly negative" earnings performance amid the backdrop of Covid-19 and related supply chain bottlenecks.
Revenue in the first six months of 2021 is expected to be USD175 million, up 23% on USD142.5 million a year ago.
However, earnings before interest, taxes, depreciation and amortisation was "slightly negative" compared with a positive USD300,000 contribution a year prior. Lamprell reiterated its expectation for "broadly breakeven" full-year Ebitda.
Looking ahead to the second half, Lamprell noted that momentum in its renewable energy business continues to improve, with a number of decisions on current renewables bidding opportunities expected in the six month period to the end of December. Revenue of USD295 million has already been secured for the second half.
Lamprell's bid pipeline has grown by nearly USD1 billion, or 17%, to USD6.9 billion since the beginning of the year, with the majority of added projects from the renewables industry. Renewables opportunities comprised around 50% of the pipeline as at June 30.
"Our strategy is now fully aligned with the broader energy transition. The Renewables business unit is benefiting from the growth in global opportunities and limited fabrication capacity and we are encouraged by the level and quality of engagement with current and prospective clients," commented Chief Executive Christopher McDonald.
"The work in recent years to reposition the business, reduce overheads and develop a strong track record in renewables has transformed Lamprell and provides us with an improving outlook."
The Middle East was highlighted by Lamprell as an area for potential future expansion, with it "actively seeking to transition" its Oil and Gas business unit to Saudi Arabia.
Lamprell shares dropped 4.1% to 40.25 pence each in London on Tuesday.
By Will Paige; willpaige@alliancenews.com
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