LAM.L Regulatory News (LAM)

7 June 2011

LAMPRELL PLC

("Lamprell" or "the Group")

AGM Statement

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas and renewables industry, is holding its Annual General Meeting at 12pm UAE time (9am UK time) today at Suite 102, City Tower 2, Sheikh Zayed Road, Dubai, UAE. At the meeting, Chairman, Jonathan Silver, will make the following statement:

"2010 proved to be a very positive year for Lamprell. We saw a significant improvement in many of our operating markets after the turbulent period experienced during the economic crisis. Strengthening oil prices also contributed to unprecedented levels of enquiries and bid activity. A positive development was the unforeseen turnaround in the new build jackup market in the second half of 2010. This was in part triggered by a post-Macondo effect but moreover by a continuing drive for more modern, cost-effective and efficient drilling units designed to meet the ever increasing technical demands of the drilling industry.

The positive trends seen in 2010 have continued into 2011 and the performance in the year to date has been, as outlined in the Interim Management Statement on the 19th May 2011, in line with management expectations. We continue to see evidence of improvements in our operating markets and our bid activity remains at a historically high level. We are experiencing renewed activity in the rig refurbishment and upgrade market, representing a strong improvement from the lower levels of expenditure experienced in the second half of 2010.

We remain focused upon pro-active management of the Group's cost base, in particular the level of labour employed and the amount of hired equipment being utilised, whilst at the same time ensuring first class project execution. In addition, the procurement group continues its work to establish strategic agreements with key suppliers and capture further cost savings.

From an operating perspective Lamprell continues to focus on maintaining high standards of project execution, with a particular emphasis on safety and quality, whilst delivering projects both on time and on budget. We believe that this close attention to providing our customers with exactly what they require is fundamental in ensuring the long term growth of our business.

Work in Hamriyah and Jebel Ali continues to progress on time and on budget in relation to Lamprell's major Engineering, Procurement and Construction contracts and on the ongoing new build projects in Jebel Ali.

In rig refurbishment we have worked on a total of 20 jackup rigs in 2011, and these projects have included work scopes covering the full range of our upgrade and refurbishment service. Projects have been shared between our UAE facilities, with Hamriyah facility working on 14 rigs and Sharjah working on 6 jackups.

The Group maintains a substantial order book extending to 2013 which at the end of April was approximately US$ 933 million, comprising US$ 807 million from EPC projects, US$ 41 million from new build land rigs, US$ 32 million from offshore construction projects, including offshore well head platforms, Floating Production Storage and Offloading units and accommodation modules, and US$ 53 million from jackup rig refurbishment projects.

The Group has recently announced that it is making an offer to purchase the entire issued share capital of Maritime Industrial Services Co. Ltd. Inc. ("MIS") at a price of 38 NOK per share, representing a total maximum consideration of NOK 1,869 million ($336.1 million/£208.1 million). MIS is a diversified engineering and contracting group focused on the energy sector, and is listed on the Oslo Stock Exchange. The Offer is to be financed through a rights issue and by way of new bank facilities. Completion is conditional upon approval by shareholders, and there is an Extraordinary General Meeting on 13 June 2011 in this regard.

This transaction represents a significant step for Lamprell in its evolution as we continue to expand both the breadth and depth of our service offering and the geographical range of our customer base. There is a strong complementary fit between Lamprell and MIS, enabling the enlarged group to pursue new opportunities with enhanced resource and technical competence. In particular, we see real competitive advantage in the companies' combined engineering offering as well as greater access to new business in the downstream and onshore sectors.

We believe that this transaction will rapidly create value for our shareholders and that we can demonstrate the merits of bringing together these two businesses both through new business opportunities and operational and financial synergies. 

Whilst the transaction process moves ahead, we are ensuring that we maintain momentum in our ongoing activities. We continue to see high levels of enquiries for our services in most sectors of our business and the Board remains optimistic that the long term prospects of the Group remain promising."

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Notes to editors

Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry.

·; Lamprell's three primary facilities are in Port Khalid and the Hamriyah Free Zone, in the Emirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai, all of which are in the UAE.

·; The principal markets in which Lamprell operates, and the principal services it provides, are:

o Engineering, procurement and construction of jackup rigs, liftboats and drilling related equipment;

o Upgrade and refurbishment of offshore jackup rigs;

o New build construction for the offshore oil and gas sector, including Floating Production, Storage and Offloading systems and other offshore and onshore structures; and

o Oilfield engineering services, including the upgrade, refurbishment and new building of land rigs.