23 Apr 2020 13:42
23 April 2020
LAMPRELL PLC("Lamprell" and with its subsidiaries the "Group")
EAST ANGLIA ONE PROJECT - FINAL CONTRACT SETTLEMENT
Lamprell is pleased to announce that it has reached a final settlement with ScottishPower Renewables with regards to the close-out of the East Anglia One project. This settlement removes both the risk of liquidated damages of USD 33.8 million and will materially improve the Group's liquidity by approximately USD 40 million in due course as set out below.
The final settlement will result in a cash payment to Lamprell of USD 18.9 million in May 2020. In addition, the Group will now commence the process of releasing up to USD 23 million of the restricted cash reported on 14 April 2020 (USD 35 million) relating to the project performance guarantee, approximately half of which is expected to be released in the coming months.
In September 2019, the Group reported project losses of USD 95.6 million up to the period ended 30 June 2019. Following this final settlement and subject to audit, the overall project losses amount to USD 118.2 million, an additional loss of USD 22.6 million that will materially affect the Group's financial performance for the year ended 31 December 2019. The project loss covers all outstanding works to completion and the increased costs incurred by the subcontractor in Belfast. We now anticipate that, subject to audit, 2019 revenue to be slightly lower than previous guidance at USD 260 million.
Further to the Financial Conduct Authority's (FCA) directive for listed companies to defer release of their results due to the ongoing impacts of COVID 19, Lamprell anticipates it will release its results for the year ended 31 December 2019 on 6th May 2020.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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Notes to editors
Lamprell PLC, based in the United Arab Emirates ("UAE") and with over 40 years' experience, is a leading provider of fabrication, engineering and contracting services to the offshore and onshore oil & gas and renewable energy industries. The Group has established leading market positions in the fabrication of shallow-water drilling jackup rigs, liftboats, land rigs, and rig refurbishment projects, and it also has an international reputation for building complex offshore and onshore process modules and fixed platforms.
Lamprell employs more than 4,000 people across multiple facilities, with its primary facilities located in Hamriyah, Sharjah and Jebel Ali, all of which are in the UAE. In addition, the Group has facilities in Saudi Arabia (through a joint venture agreement). Combined, the Group's facilities cover approximately 828,000 m2 with 1.6 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol "LAM").