30 Nov 2017 07:00
30 November 2017
LAMPRELL PLC("Lamprell" and with its subsidiaries the "Group")
PROJECT UPDATE
Lamprell provides an update in relation to the East Anglia One offshore windfarm project. As announced previously, there were start-up costs and inefficiencies in relation to the project and the learning curve has proven to be steeper than anticipated.
We remain confident of meeting our client's expectations in terms of schedule and quality but we will incur extra costs to achieve this. As a result, we now expect the project to make a significant loss, which will be booked in 2017.
We are working with our client and supply chain to mitigate the additional costs. As the Company continues to work through the variable factors that will ultimately affect the costs on this project, the Company will be in a position to make an announcement with respect to the financial impact in due course. While we expect revenue for FY2017 to be in line with current guidance, we now expect earnings and EBITDA to be materially below current market expectations.
The Company continues to maintain a strong balance sheet and its robust cash position provides confidence in its future.
We remain of the view that the renewables market presents significant potential for the growth of the Group and we are convinced that the lessons learned from this first project in the sector have strengthened our capabilities. This will help to position us competitively for future project awards.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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Legal Entity Identifier of the Company: 2138008NUMXRMIEDF538
Classification: Additional regulated information required to be disclosed under the laws of a Member State
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 7,000 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 1.9 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol "LAM").