26 Jul 2012 07:00
LAMPRELL PLC
("Lamprell" or the "Group")
TRADING UPDATE
Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas and renewables industry, makes the following announcement:
Following the Company's Trading Update of 7 June, the Company has been undertaking a further review of its financial position and as a result has now revised its previous forecast. As a consequence of additional costs arising from the delayed deliveries of the Windcarrier 1 and 2 projects, the loss at the half year is expected to be approximately US$ 45 million.
In addition, an extension to the timeframe for achieving direct overhead and corporate cost savings that were previously anticipated will impact the full year result. Revenue for 2012 is still anticipated to be approximately US$ 1.1 billion. However, the Company now anticipates a loss for the year in the range of US$ 12 million to US$ 17 million.
As a result of these anticipated first half losses, Lamprell will be seeking waivers from certain of its banks in relation to its banking covenants.
Deliveries of equipment for the jackup drilling rigs that the Company is constructing are currently being received in accordance with the revised delivery schedules.
-ends-
Enquiries:
Lamprell plc | |
Nigel McCue, CEO | +44 (0)20 7920 2330 |
Jonathan Cooper, CFO | |
M:Communications, London | |
Patrick d'Ancona | +44 (0) 207 920 2347 |
Andrew Benbow | +44 (0) 207 920 2344 |
Cautionary Statement
This announcement contains certain forward-looking statements with respect to the financial condition and operational results of Lamprell plc. These statements and forecasts involve risk, uncertainty and assumptions because they relate to events that depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. These forward looking statements are made only as at the date of this announcement. Nothing in this announcement should be construed as a profit forecast. Except as required by law, Lamprell plc has no obligation to update the forward-looking statements or to correct any inaccuracies therein.
Notes to editors
Lamprell, based in the United Arab Emirates ("UAE"), and with operations throughout the region, has played a prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years and is the regional market leader in the rig market. Lamprell is a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries.
Lamprell employs over 14,000 people across six 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 JV agreement) and Kuwait. Combined, the Group's facilities provide a total area of over 925,000 m² with 2.2 km of quayside.
Oil & Gas
·; New Build Jackup Drilling Rigs
·; New Build Offshore
·; Rig Refurbishment
·; Engineering & Construction
·; Land Rig Services
Renewable Energy
·; Wind Farm Installation Vessels
·; Transformer Stations (AC & DC)
·; Wind turbine Foundations
Services
·; Engineering Services
·; INSPEC (NDT, Mechanical & Calibration services)
·; Sunbelt H2S Safety Services
Operations & Maintenance
www.lamprell.com