LONDON (Alliance News) - Lamprell PLC Monday said it is on track to deliver full-year results in line with expectations and has continued to perform well despite challenging market conditions.
"The group is on track to deliver results for 2015 in-line with previous guidance. The group has continued to see strong operational and financial performance in 2015 with the delivery of three major projects during the first half of the year," said the company.
The oil services company said it currently has six jackup rigs being constructed in the Hamriyah facility in the United Arab Emirates, which will increase to seven rig construction projects in the second half of 2015. It said the piperack modules construction project for Petrofac is also "progressing well".
In April, the company said it had won a contract from the National Drilling Co to build a new jackup rig, and on Monday Lamprell said the company has the option for Lamprell to build a further two rigs which runs into the third quarter of 2015.
The company also secured an order for five additional piperacks and one module for an existing client and a contract award for suction caps and buoyancy tanks from a new client. Both the rig refurbishment and the land rig services business units have seen "steady starts to the year" with several awards from new and existing clients, it said.
"As anticipated, we have seen customers delaying some project sanctions for discretionary capital spend but Lamprell's bidding pipeline remains strong amid the challenging market conditions as a result of its high standards of quality and safety, competitive pricing and market leading operational performance," said the company.
"The group's focus remains firmly on the conversion of a range of substantial bidding opportunities in the coming months. A degree of uncertainty remains as to the impact of the market environment on the sector," it added.
Lamprell reiterated that it is continuing to cut costs and that its financial results will be "heavily weighted" to the second half of the year.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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