(Alliance News) - Lamprell PLC on Monday saw its shares drop after tipping a reduction in full-year profit, as its operational productivity slowed and supply chain issues increased costs.
Lamprell is a Hamriyah, United Arab Emirates-based provider of oil field services.
Preliminary figures showed that revenue rose 15% to USD389 million in 2021 from USD260.4 million a year ago, but the company noted that profitability took a hit due to Covid-related costs.
"Lamprell has been successful in managing pandemic-related disruption effectively, although incremental costs due to reduced productivity and rephasing of work have impacted the group's profitability in 2021," Lamprell said.
Lamprell shares sunk 8.4% to 31.85 pence each in London on Monday morning.
Specifically, Lamprell said national lockdowns and travel restrictions early in the year hurt productivity and supply chains, leading to higher costs.
Lamprell's pipeline sat at USD7.9 billion on December 31, up from USD6 billion at the end of 2020. Specifically, the Renewables pipeline almsot doubled to USD4.6 billion from USD2.5 billion.
"This reflects our ability to be involved in high scope bids across the globe, with an increasing number of US-based projects entering our pipeline, a region set for a steep increase in offshore wind energy over the coming decade," the company said.
Chief Executive Christopher McDonald said: "We are pleased to deliver revenue growth for the third year, albeit with continuing impacts of the Covid-19 restrictions on the bottom line. Lamprell is embracing the energy transition with its Lamprell Reimagined strategy, we are very encouraged by the market outlook and bidding dynamics in both our end markets of renewables and oil and gas and the continuing significant growth of our bid pipeline."
By Greg Roxburgh; gregroxburgh@alliancenews.com
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