17 Feb 2011 07:00
17 February 2011
LAMPRELL PLC
("Lamprell" or the "Company")
Update on contracts
Lamprell plc (the "Company") has been notified by Seajacks 3 LTD ("Seajacks") that it is allowing the option for a second vessel, negotiated as part of the original transaction to construct a self-elevating and self-propelled offshore wind turbine installation vessel entered into in June 2010, to lapse.
In addition, the first option for a self-elevating and self-propelled offshore wind turbine installation vessel granted to Fred Olsen Windcarrier AS ("Windcarrier") in February 2010 has now lapsed without being exercised. The second option remains outstanding until August 2011.The existing vessels for these customers remain under construction at Lamprell's Hamriyah and Jebel Ali facilities respectively, and are scheduled to be delivered on time and on budget.
The Company believes that there are ongoing delays in the development of the offshore wind sector driven by a number of factors. Nevertheless Lamprell looks forward to the opportunity to continue to work with Seajacks, Windcarrier and other operators as the offshore wind sector grows in the medium and longer term.
The non-exercise of these options has no impact on the Company's expectations for the current year. It means that the Company has the opportunity to utilise facility capacity to pursue new construction contracts and it remains very active in terms of contract bidding in this area of its business. The company has a record bid pipeline at this time and sees in particular an increase in activity levels in the new build jackup market, reflecting the current buoyancy of that market segment.
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.