19 May 2011 07:00
19 May 2011
LAMPRELL PLC
("Lamprell")
INTERIM MANAGEMENT STATEMENT
Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas and renewables industry, issues the following Interim Management Statement for the period 1 January 2011 to 18 May 2011.
The performance in the year to date has been in line with management expectations and 2011 has started encouragingly.
We continue to see evidence of improvements in our operating markets and our bid activity remains at a historically high level. As previously reported, 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.
Work in Hamriyah and Jebel Ali continues to progress on time and on budget in relation to Lamprell's major Engineering, Procurement and Construction ("EPC") 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 year to date and these projects have included work scopes covering the full range of our upgrade and refurbishment service. These 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's financial position has not changed significantly from 31 December 2010.
The Company has today 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) (the "Offer"). 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 Lamprell's shareholders, amongst other matters. Further details are set out in the prospectus expected to be published by the Company today.
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.
-ends-
Enquiries:
Lamprell plc | +44 (0) 207 920 2347 |
Jonathan Silver, Chairman Nigel McCue, Chief Executive Officer Scott Doak, Chief Financial Officer | |
M:Communications, London | |
Patrick d'Ancona | +44 (0) 207 920 2347 |
Andrew Benbow | +44 (0) 207 920 2344 |
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.