TIDMLAM
RNS Number : 6622P
Lamprell plc
30 March 2009
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30 March 2009
LAMPRELL PLC
("Lamprell" or the "Company")
2008 PRELIMINARY RESULTS
Lamprell (ticker: LAM), a leading provider of specialist engineering services to
the international oil & gas industry based in the UAE, announces its Preliminary
Results for the year ended 31 December 2008.
2008 FINANCIAL PERFORMANCE
* Revenue: US$ 740.8 million up 58.5% (2007: US$ 467.3 million)
* Adjusted operating profit: US$ 92.5 million up 12.8%* (2007: US$ 82.0 million)*
* Adjusted net profit: US$ 95.5 million up 10.8%* (2007: US$ 86.2 million)*
* Adjusted EPS (fully diluted): 47.58 cents up 10.6%* (2007: 43.04 cents)*
* Proposed final dividend: 3.15 cents (2.18 pence) per ordinary share (2007: 12.25
cents)
* Net cash and bank balances as at 31 December 2008 of US$ 97.8 million (2007: US$
159.1 million) with no long term debt.
STATUTORY RESULTS
The statutory results for the year ended 31 December 2008, after reflecting the
exceptional charges noted above, are as follows:
* Operating profit: US$ 82.5 million up 22.6% (2007: US$ 67.3 million)
* Net profit: US$ 85.5 million up 19.6% (2007: US$ 71.5 million)
* EPS (fully diluted): 42.59 cents up 19.2% (2007: 35.72 cents)
* For the current year stated before reflecting exceptional charges for share
based payments of US$ 6.6 million (2007: US$ 14.7 million) granted to certain
directors and selected management personnel pre IPO, and before reflecting
various legal and professional charges amounting to US$ 3.4 million (2007: US$
nil) incurred in connection with the admission of Lamprell plc to the Main
Market of the London Stock Exchange plc.
PROJECTS COMPLETED IN 2008
* The upgrade and refurbishment of the Transocean jackup rig, the C.E. Thornton,
was completed on schedule in October 2008 and the rig subsequently mobilised to
India to resume its contract with Reliance and ONGC.
* Hercules jackup rigs 261 & 262 arrived at Lamprell's Sharjah facility in June
2008. The rigs were transported on a heavy lift vessel from the Gulf of Mexico
after Hercules secured drilling contracts with Saudi Aramco. The works scope
included spud can repairs, accommodation upgrades including the fabrication and
installation of additional modules, leg repairs and the installation of a fifth
generator. The works were successfully completed in November 2008.
* The construction of six process modules for Saipem. These modules were designed
and constructed for the Gimboa Floating Production, Storage and Offloading
("FPSO") unit to suit typical production of around 60,000 barrels of oil per
day. The modules were delivered to Saipem ready for installation onto the FPSO
and Lamprell thereafter provided assistance with that installation. The FPSO is
now working for Sonangol in Angola.
* In March 2008 Lamprell loaded out and delivered the third Kashagan flash gas
compression barge to Single Buoy Moorings Inc. following the completion of a
modification work scope including the addition of further access platforms to
the barge.
* In September 2008 Oilfield Engineering delivered the first of four new build
LeTourneau design fast moving land rigs.
CURRENT PROJECTS
* Completion of the commissioning and delivery of the Seajacks Kraken new build
self propelled liftboat to Seajacks International Limited in March 2009, on time
and in budget. The construction phase of the second liftboat, the Seajacks
Leviathan, has significantly advanced during 2008 and the unit will be launched
later in the year awaiting final completion and commissioning.
* The construction phases of the new build jackup rig projects for Scorpion
Offshore Limited have significantly advanced during 2008 and the first rig, the
Offshore Freedom, is on target for delivery in April 2009, with the Offshore
Mischief planned to be launched later in the year awaiting final completion and
commissioning.
* The Al Ghallan jackup drilling rig refurbishment project for National Drilling
Company ("NDC") was completed in March 2009. This project, with an estimated
final contract value of US$ 59 million is part of the NDC strategic Rig
Integrity Assurance Program ("RIAP"), and has been completed successfully and
delivered on time and on budget. The project is the second contract awarded
under the RIAP program and follows the successful completion of the NDC Junana
upgrade project in 2007.
* The new build jackup rig project with Riginvest GP for the construction and
delivery of a completely outfitted and equipped, LeTourneau designed,
self-elevating Mobile Offshore Drilling Platform of a Super 116E (Enhanced)
Class design is continuing and now planned for completion in November 2010.
* The construction phase of the lump sum turnkey construction contract with
BassDrill Limited ("BassDrill") for a self erecting tender assist drilling unit
with living accommodation and a modular mast equipment package, is progressing
on target for completion later this year.
NEW CONTRACT AWARDS IN 2009
* New contract award with Master Marine ASA ("Master Marine") with a value of US$
16.9 million. The contract is for the construction of spud cans for Master
Marine's jackup "JackTel" which has recently been awarded a contract by
ConocoPhillips to operate as an accommodation platform in the Ekofisk field in
the Norwegian sector of the North Sea. Delivery is scheduled for early 2010.
* New contract award with Noble Drilling with a contract value of US$ 8.6 million.
The contract is for the upgrade and refurbishment of jackup rig Noble Roy
Rhodes. The contract work scope includes cantilever and sub-base modifications,
drilling equipment upgrades and accommodation refurbishment. The rig arrived at
Lamprell's Sharjah facility in March 2009 and the work schedule is anticipated
to last for 5 months.
OPERATIONAL DEVELOPMENTS
Despite the uncertain economic environment, our operational developments are
continuing as planned, however, we continue to review the phasing of investment
in the new facilities and where it is considered that capital expenditure can be
deferred without impacting the operational capability of the facilities, the
expenditure has been delayed. We believe our expansion is essential so that
Lamprell is well placed to harness future business streams once the financial
markets have improved and we see an upturn once more in activity levels.
The construction of our new 250,000m² facility in the Hamriyah free zone is
continuing. The dredging work is now complete and the 1.25km quay wall is close
to completion, with the inner basin having been completed in early 2009. In
addition, the construction of the main office, client office and main workshops
are all ongoing and several construction areas have been completed. As planned
we now expect that the first jackup drilling rig will undergo refurbishment work
at the quayside during April 2009.
The Company's new 47,000m² facility with 158 meters deep water quay side in
Sattahip, Thailand is now complete and our first revenue generating project
commenced in the first quarter of 2009. In addition, the Board of Investment
privileges for the new Thailand operation were granted on 4 December 2008
providing amongst other benefits, certain corporate tax and import duty
exemptions.
BOARD CHANGES
At a Board meeting held on 27 March 2009 Jonathan Silver was appointed to the
role of Non-Executive Chairman with immediate effect. Jonathan is a qualified
lawyer who has been working in the United Arab Emirates since 1980. In 1989 he
was appointed Head of Clyde & Co's operations in the region. Jonathan chairs
Clyde & Co's regional management board and represents the region on the firm's
global management board. Throughout his career in the legal profession, Jonathan
has advised the boards of public and private companies from around the world
extensively on their obligations, responsibilities and governance arrangements.
Jonathan has been associated with the Lamprell Group for more than 20 years,
providing legal advice to the Company. He was actively involved in the Company's
listing on the Alternative Investment Market and with the listing of its entire
issued ordinary share capital on the Official List of the UK Listing Authority
and admission to trading on London Stock Exchange plc's main market for listed
securities. Jonathan joined the Board of Lamprell plc on 24 August 2007 as a
Non-Executive Director.
Peter Whitbread will be stepping down from the position as Chief Executive
Officer ("CEO") with effect from 1 May 2009. The intent to step down was
initially advised to the Market at the time of the initial offering in October
2006 and Peter will be taking over a role more outwardly focused on the long
term strategic development of the Company. Peter will assume the role of
Director of International Development and will focus on the development and
maintenance of client relationships and on the longer term strategic positioning
of the Company. Peter is a valued member of Lamprell's Executive team having
served with the Company since 1992 in the position of CEO and he played an
instrumental role in bringing the Group to market in 2006.
Nigel McCue has been appointed CEO with effect from 1 May 2009. Nigel was
appointed to the Board on 7 July 2006 as a Non-Executive Director prior to being
appointed to the Executive position of Chief Operating Officer in May 2008.
Nigel has over 30 years of experience in the petroleum industry and, prior to
being appointed Chief Operating Officer of Lamprell, he was a Director and the
Chief Executive Officer of Jura Energy Corporation, a company listed on the
Toronto Stock Exchange, and is now the Chairman and a member of the Compensation
Committee of that company. He is also a Director of Nemmoco Petroleum Limited, a
private exploration and production company. Prior to this, he was a Director and
the Chief Financial Officer of Lundin Petroleum AB. Nigel has also held various
positions with Chevron Overseas Inc. and Gulf Oil Corporation. Nigel is the
Senior Independent Non-Executive Director, within the definition of the FRC
Combined Code, of Dragon Oil plc, where he is the Chairman of its Audit
Committee and a member of the Remuneration and Nomination Committees.
CURRENT TRADING
The Board is cautious in the short term market for new build construction and
although FPSO related activities were significant in the first half of 2008,
there was a slow down in the second half of the year due to a general reduction
of capex budgets and the weakening oil price. Notwithstanding this fact, the
Board remains confident in the long term viability of the offshore construction
market both for fixed and floating structures.
Activities relating to land rigs have continued at a consistent level and
progress on the four new build API 2000 HP fast moving land rigs continues on
schedule. There have been a number of land rigs which have been temporarily laid
up in the first quarter of 2009, reflecting a sharp reaction to the sudden drop
in the oil price and the impact of the world wide financial uncertainty.
However, because of the regional dynamics of the Middle Eastern market, a market
which we have operated in for over thirty years, we anticipate a strong recovery
in land drilling activities in the Middle East in the second half of 2009.
In the rig refurbishment market we remain busy currently but expect a slowdown
in the second half of the year. On 20 March we announced that as a result of
that change we expected the out turn for 2009 to be below the market's
expectations at that time. However, our order book remains significant despite
this recent slowdown in business.
Commenting on this announcement, Peter Whitbread, CEO of Lamprell said:
"In 2008 we delivered significant revenue and earnings growth, exceeding all
targets set at the beginning of the year and we continue to operate with a
substantial order book extending into late 2010.
We are pleased to announce today that on 27 March 2009 the Board appointed
Jonathan Silver as Non-Executive Chairman. Jonathan's detailed knowledge of the
Group and the Middle East region means he is the ideal candidate for the role
and the Board is delighted he has agreed to become the Chairman of Lamprell plc.
In addition it has been confirmed by the Board that on 1 May 2009 I will be
stepping down from the position of CEO which I have held for the past 17 years.
The intent to step down was initially advised to the market at the time of the
initial offering in October 2006 and I am delighted that Nigel McCue is stepping
into this position. I am confident that Nigel has the right level of experience
and knowledge to successfully take the Company forward.
These are challenging times for the sector as a whole but I believe Lamprell is
taking the steps necessary to position itself both to withstand the current
period of uncertainty and take advantage of new opportunities when the market
does improve. Our track record of on time and on budget project execution
remains central to our offering and underpins our confidence in our long term
prospects, which remain promising as we seek to build a strong platform for
future growth."
-Ends-
+--------------------------------------------------+--------------------------+
| Enquiries: | |
+--------------------------------------------------+--------------------------+
| | |
+--------------------------------------------------+--------------------------+
| Lamprell plc | +44 (0) 207 153 1547 |
+--------------------------------------------------+--------------------------+
| Peter Whitbread, Chief Executive Officer | |
+--------------------------------------------------+--------------------------+
| Nigel McCue, Chief Operating Officer | |
+--------------------------------------------------+--------------------------+
| Scott Doak, Chief Financial Officer | |
+--------------------------------------------------+--------------------------+
| | |
+--------------------------------------------------+--------------------------+
| M:Communications, London | +44 (0) 207 153 1547 |
+--------------------------------------------------+--------------------------+
| Patrick d'Ancona | +44 (0) 207 153 1548 |
+--------------------------------------------------+--------------------------+
| Georgina Briscoe | +44 (0) 207 153 1531 |
+--------------------------------------------------+--------------------------+
| Charlotte Kirkham | |
+--------------------------------------------------+--------------------------+
Chief Executive Officer's Statement
I am pleased to announce that we have had another successful year in 2008,
having seen significant growth in revenues of 58.5% compared to 2007, and a net
profit (adjusted for exceptional charges) for the year of US$ 95.5 million (US$
85.5 million after exceptional charges).
Towards the end of 2008 we entered a time of market uncertainty as a result of
the worldwide financial crisis. Lamprell, like every other company, is looking
at a different economic landscape from that which existed this time last year.
In mid 2008, the Group was operating against a backdrop of record oil prices,
with the oil services sector working at near maximum capacity. This is in stark
contrast to the operating markets we are now experiencing and as a result, we
have reviewed our business to ensure we are able to steer the Group effectively
through these turbulent times.
One of the cornerstones of Lamprell's development and success has been its
rigorous approach to project execution. We are committed to offering our
customers the highest standards available and our clients enjoy exacting levels
of service. We are in the privileged position of enjoying a great many repeat
contracts from our customers who see the value which Lamprell brings. In
addition to this, we have been fortunate to have a strong balance sheet and net
cash position.
Throughout our history, we have approached expansion and development in a
measured way, only embarking on such projects when we could afford to pay for
such developments from our own cash resources. At a time when bank debt is not
readily available, we are pleased to continue operating with no long term debt.
In the past year we have undertaken some of the largest and most complex
projects in the Company's history. We have a strong order book going forward,
which at the end of the year stood at approximately, US$ 600 million extending
into late 2010 and to date there have been no cancellations received impacting
our order book.
On our major Engineering, Procurement and Construction ("EPC") contracts we
completed the commissioning and delivery of the Seajacks Kraken new build self
propelled liftboat to Seajacks International Limited in March 2009, on time and
on budget. The construction phase of the second liftboat, the Seajacks
Leviathan, has significantly advanced during 2008 and the unit will be launched
on schedule later in the year awaiting final completion and commissioning.
The construction phases of the new build jackup rig projects for Scorpion
Offshore Limited have significantly advanced during 2008 and the first rig, the
Offshore Freedom, is on target for delivery in April 2009, with the Offshore
Mischief planned to be launched later in the year awaiting final completion and
commissioning. We are delighted that Scorpion have now arranged the full funding
requirements for the Offshore Freedom and also that they have arranged financing
to meet a substantial progress payment on the Offshore Mischief and have stated
to the market that they are confident of meeting all future contract payments.
The new build jackup rig project with Riginvest GP for the construction and
delivery of a completely outfitted and equipped, LeTourneau designed,
self-elevating Mobile Offshore Drilling Platform of a Super 116E (Enhanced)
Class design is continuing and is now planned for completion in November 2010.
In addition, the construction phase of the lump sum turnkey construction
contract with BassDrill Limited ("BassDrill") for a self erecting tender assist
drilling unit is progressing on target for completion later this year.
The Al Ghallan jackup drilling rig refurbishment project for National Drilling
Company ("NDC") was carried out during the year and has been completed
successfully on time and on budget in February 2009. This project, with a
contract value to Lamprell of US$ 59 million, is part of the NDC Strategic Rig
Integrity Assurance Program ("RIAP"). The project is the second contract awarded
under the RIAP program and follows the successful completion of the NDC Junana
upgrade project in 2007.
The Board
On 6 November 2008 we moved our listing from the Alternative Investment Market
to the Official List of the UK Listing Authority and the shares of Lamprell plc
were admitted for trading on the London Stock Exchange plc's main market for
listed securities.
Subsequent to our move to the Official List, Peter G Birch, the then Chairman of
the Company, resigned from the Board of Lamprell plc due to personal reasons.
David Moran who held the position of Director of Corporate Communications
stepped down from the Board on 2 November 2008 and has subsequently left the
Company. We acknowledge the contribution made by both Peter and David during
their tenure with the Company.
Colin Goodall joined the Board of Lamprell as a Non-Executive Director on 14
September 2008. Colin was appointed to the role of Senior Independent
Non-Executive Director on 2 November. In addition, on 15 September 2008, the
Board announced the appointment of Brian Fredrick who joined the Board as a
Non-Executive Director with effect from 1 January 2009. Brian has held a variety
of senior banking roles, most recently with HSBC.
Jonathan Silver joined the Board on 24 August 2007, pursuant to arrangements
made with Lamprell Holdings Limited, the Company's principal shareholder, at the
time the Company's shares were admitted to trading on the Alternative Investment
Market. In accordance with those arrangements, Jonathan ceased to be a Director
immediately upon Admission to the Official List becoming effective. However, the
Board considered that Jonathan's detailed knowledge of the Group and the Middle
East region made it desirable for his services to be retained and accordingly,
the Board resolved to reappoint Jonathan immediately as a Non-Executive
Director.
We are pleased to announce that on 27 March 2009 the Board appointed Jonathan
Silver as Non-Executive Chairman. Jonathan's detailed knowledge of the Group and
the Middle East region means he is the ideal candidate for the role and the
Board is delighted he has agreed to become the Chairman of Lamprell plc. He has
already made an invaluable contribution to the Group's development in recent
years and we look forward to working with him as we seek to build our business,
both in the Middle East and overseas.
On 1 May 2009 I will be stepping down from the position of CEO which I have held
for the past 17 years. My intention to step down was initially advised to the
Market at the time of the initial offering in October 2006 and I am delighted
that Nigel McCue is stepping into the CEO position. I am confident that Nigel
has the right level of experience and knowledge to successfully take the Company
forward.
I will be taking on a role more outwardly focused on long term strategic
development of the Company. This position, entitled Director of International
Development, will focus on the development and maintenance of client
relationships and on the longer term strategic positioning of the Company as we
seek to further expand the Company`s international interests and markets. This
role will also entail working closely with Nigel in providing managerial
assistance and support to him in his new role as CEO.
I would also like to particularly thank the founder and President of the
Company, Steven Lamprell, for his friendship and support during the 17 years of
working together. Without that long term relationship and trust, the Company
would not have developed to the structure that we have today. This ongoing
support and enthusiasm, particularly during the current difficult and uncertain
market conditions, is truly appreciated both from a business as well as a
personal standpoint.
Future Developments
Despite the uncertain economic environment, our operational developments are
continuing as planned. We believe our expansion is essential so that Lamprell is
well placed to harness future business streams once the financial markets have
improved and we see an upturn once more in activity levels.
Construction of the new facility at Hamriyah continues and operations are
scheduled to commence in the second quarter of 2009. When completed the new
facility will have a developed area of 250,000m² with a deepwater berthing quay
wall 1,250 meters in length and 9 meters deep. Lamprell will have a much more
flexible capacity with the ability to work on up to 10 rigs simultaneously and
construct up to three new build jackups. Lamprell will also be able to refurbish
drill ships and semi submersible drilling units which, up to this time, the
Company has been unable to service in any significant capacity because of space
and water depth constraints.
We are additionally developing and expanding our facilities at Jebel Ali and we
have recently completed the construction of an extension to our existing
production facility.
The Company's new 46,950m² facility with 158 meters deep water quay side in
Sattahip, Thailand, is now complete and our first revenue generating project
commenced in the first quarter of 2009. In addition, the Board of Investment
privileges for the new Thailand operations were granted on 4 December 2008
providing amongst other benefits, certain corporate tax and import duty
exemptions.
Market Overview
As a result of the diverse range of activities that Lamprell undertakes and its
broad range of customers, all of the Company's facilities have remained active
during 2008. This has been a significant contributor in delivering a strong
financial performance for the year and reporting net profit for 2008 in line
with market expectations, despite current market conditions.
During this current period, Lamprell continues to remain operationally active
but also extremely vigilant. The Board continues to be cautious with respect to
the market for new build orders for drilling jackup rigs as it expects that
these may slow, as clients reduce their capital expenditure plans and focus on
existing assets.
The Company continues to see a significant interest in the use of jack up
liftboats for alternative energy usage, particularly related to the development
of offshore wind farms and our proposals activity generally remains active.
Rig refurbishment performed strongly in 2008 with higher levels of activity than
expected in the second half of the year. This business area has remained buoyant
as we enter 2009, however, there have been recent signs of a slow down which is
likely to impact during the second half of 2009.
The Board remains optimistic of the medium term prospects for this business
area. Over 75% of the existing global rig fleet is over twenty five years old
and over twenty five percent of that fleet is located within Lamprell`s regional
catchment area. To that end, the Company anticipates that demand for its
services will continue, despite the fact that multiple new build rigs will be
delivered in the next three years and the current oil price is depressed. The
continued maintenance and refurbishment of this aging fleet is still seen as a
regional priority for operators and will continue to represent a major ongoing
component in the overall mix of projects which Lamprell will be undertaking in
the coming years.
FPSO related activities were significant in the first half of 2008, however,
there was a slow down in the second half of the year due to a general reduction
of capex budgets and the weakening oil price. Notwithstanding this fact, the
Board remains confident in the long term viability of the offshore construction
market both for fixed and floating structures.
Activities relating to land rigs have continued at a consistent level and
progress on the four new build API 2000 HP fast moving land rigs continues on
schedule. The demand for land rigs also continued to grow through to the end of
2008 both in the UAE and internationally and the rig count in the Middle East
has seen a substantial increase in the past three years. There have been a
number of land rigs which have been temporarily laid up in the first quarter of
2009, reflecting a sharp reaction to the sudden drop in the oil price and the
impact of the world wide financial uncertainty. However, because of the regional
dynamics of the Middle Eastern market, we anticipate a strong recovery in land
drilling activities in the Middle East in the second half of 2009. This provides
the Board with confidence that both the refurbishment and new build land rig
markets will regionally recover and will be attractive for some years to come.
The Board believes it is well placed to capitalise on the rig refurbishment
opportunities that are being presented to the Company with the increasing
offshore rig count in the Middle East region and although they are cautious in
the short term market for new build construction, the Board is confident of the
Company's long term prospects for the markets in which we operate.
Dividend
Given the current difficult market conditions and the general uncertainty of the
markets, the Board of Directors is recommending a final dividend payment of 3.15
cents per ordinary share, with a Sterling equivalent of 2.18 pence per ordinary
share. This will be payable, when approved, on 18 June 2009 to eligible
shareholders on the register at 22 May 2009.
Outlook
2008 was another successful year for Lamprell. In the period, we saw significant
revenue and earnings growth, exceeding all targets set at the beginning of the
year, and we continue to operate with a substantial order book extending into
late 2010. We have a strong balance sheet and operate with no long term debt,
and are proud to maintain a business model without claims or cases of litigation
either against us or against our clients, subcontractors or suppliers.
However, it has become apparent in recent weeks that there is a marked slowdown
in the Company's business except for the rig refurbishment business which is
currently busy but is anticipated to slowdown in the second half of the year. On
20 March we announced that as a result of that change we expected the out turn
for 2009 to be below the market's expectations at that time.
We fully recognise the challenging prevailing market conditions that the wider
service sector is currently encountering. In order that we operate as prudently
as is possible, we are reviewing the impact this might have on our business in
the short term and action has already been taken to achieve cost savings, which
is possible as a result of our flexible business model. Whilst the market today
presents significant challenges to the Group, we are confident that our long
term prospects remain promising as we seek to build a strong platform for future
growth.
I would like to take the opportunity to again express the thanks and
appreciation of the Board of Directors and my own personal thanks to all of our
workforce for their support and unfailing efforts for producing a great year in
2008.
Peter Whitbread
Chief Executive Officer
Operating Review
Lamprell had a very successful year in 2008, with all operating facilities
successfully working on a wide range of different projects. During the year
Lamprell has continued to focus on maintaining our high standards of project
execution with a particular focus on safety, maintaining high quality standards
and to delivering projects both on time and on budget to all our customers. This
focus has ensured that Lamprell has not only maintained and indeed strengthened
its relationships with its existing customers, but also added new key customers
to our expanding client base.
During the year Lamprell has continued to focus on core business whilst
developing Engineering, Procurement and Construction ("EPC") new build projects,
including the construction of jackup drilling rigs, liftboats and tender assist
drilling units. The EPC projects ongoing during 2008 have all continued to
progress on schedule and we now look forward to delivering our first completed
EPC projects during 2009.
The principal markets in which Lamprell operates, and the principal services
provided are:
* upgrade and refurbishment of offshore jackup rigs;
* new build construction for the offshore oil and gas sector;
* oilfield engineering services, including the upgrade and refurbishment of land
rigs;
* EPC new build construction of jackup drilling rigs, liftboats and tender assist
drilling units.
The operational aspects of these business activities are reviewed as follows:
Upgrade and refurbishment of offshore jackup rigs
During 2008 Lamprell executed refurbishment and upgrade works on a total of
twenty five jackup rigs. The rigs, owned by a wide range of international
drilling contractors including National Drilling Company, Ensco Oceanics
International Company, Nabors Drilling International Limited, Noble
International Limited, Transocean Offshore International Ventures, Rowan
Drilling, Hercules Offshore Middle East Ltd and Japan Drilling Company, were all
berthed at our Sharjah and existing Hamriyah facilities.
Refurbishment and upgrade projects such as these vary greatly in scope from
project to project and depend on the existing condition of each rig and the
owner's upgrade requirements. A minor project can have a work schedule lasting a
few days, whereas a major upgrade project with a significant engineering
requirement can last for twelve months or more. Typical upgrade and
refurbishment projects include some of the following work scopes:
* leg extensions and/or strengthening;
* conversion of slot rigs to cantilever mode;
* living quarters extension, upgrade and refurbishment;
* engine replacement and re-power works;
* mud process system upgrade and/or refurbishment;
* helideck replacement, upgrade and/or refurbishment;
* condition-driven refurbishment, including structural steel and piping
replacement and painting.
The jackup rig upgrade and refurbishment projects carried out in 2008 included:
NDC Al Ghallan
The rig, which was working for ADNOC, arrived at our Sharjah facility in May
2008 for an extensive upgrade and refurbishment program scheduled as part of
NDC's Rig Integrity Assurance Program ("RIAP"). The work scopes on this project
included the conversion of the rig from slot to cantilever drilling, the
addition of hull sponsons and accommodation refurbishment. The project has been
completed in the first quarter of 2009 and the rig has returned to Abu Dhabi to
continue its drilling program. Notably two million man-hours were expended and
the project was completed without a lost time incident.
Transocean CE Thornton
The CE Thornton was mobilised to Lamprell's Sharjah facility from India on the
completion of its drilling program. The rig arrived in April 2008 with a major
upgrade and refurbishment work scope, including condition driven works such as
hull steel replacement and piping renewals, as well as accommodation
refurbishment and the complete repainting of the rig. On completion of the
project in October 2008 the rig returned to India to resume its contract with
Reliance and ONGC.
Hercules 261 & 262
Hercules rigs 261 & 262 arrived at Lamprell's Sharjah facility in June 2008. The
rigs were transported on a heavy lift vessel from the Gulf of Mexico after
Hercules secured drilling contracts with Saudi Aramco. The works scope included
spud can repairs, accommodation upgrades including the fabrication and
installation of additional modules, leg repairs and the installation of a fifth
generator. The works were successfully completed in November 2008.
Offsite and other services
In addition to major refurbishment projects we also undertook a wide range of
minor projects including the supply of engineering services, procurement
activities and various smaller rig refurbishment projects carried out on board
rigs whilst they remain in operation. These projects do not account for a large
proportion of revenue but they provide a critical service to our customers and
reflect Lamprell's flexible approach to servicing our clients needs.
New build construction for the offshore oil and gas sector
Our Jebel Ali facility has been working on a variety of major projects during
2008 for clients including Single Buoy Moorings ("SBM"), Saipem SA, Kanfa AS and
Scana AMT AS. These projects all require the utilisation of our state of the art
facility as well as high levels of project management control to ensure that
safety and quality standards are maintained whilst keeping a strong focus on
delivering on schedule.
The Jebel Ali facility undertakes a range of different new build construction
projects which in 2008 included:
Process barges
SBM Kashagan Flash Gas Compression Barges
In 2006 Lamprell commenced the construction of three process barges for SBM.
These barges form part of the ongoing development of the Kashagan project, the
world's largest oil and gas project, and each weighs in excess of 3,000 tonnes,
including 1,800 tonnes of topside process components. In July 2007, the first
two barges were successfully loaded out from our Jebel Ali facility onto the
Lamprell owned semi-submersible barge, the "Hamriyah Pride". The third barge was
delivered to SBM in March 2008 following the completion of a modification work
scope including the addition of further access platforms to the barge.
FPSO process modules
Saipem Gimboa
In 2008 Lamprell completed the construction of six process modules for Saipem.
These modules were designed and constructed for the Gimboa FPSO to suit typical
production of around 60,000 barrels of oil per day. The modules were delivered
to Saipem ready for installation onto the FPSO and Lamprell thereafter provided
assistance with the integration of the modules onto the FPSO. The FPSO is now
working for Sonangol in Angola.
SBM Frade FPSO process modules
In the first quarter of 2007 Lamprell was awarded the contract to build seven
process modules and a turret manifold deck by SBM for their Frade FPSO. The work
scope includes structural, piping, E&I and pressure vessel works. The modules
were delivered to SBM from March to May 2008 ready for integration onto the
converted tanker located at Dubai Drydocks. Following delivery Lamprell provided
resources to assist with the integration of the modules onto the FPSO.
Oilfield Engineering services
Lamprell's Oilfield Engineering operation, located within our main Jebel Ali
facility, was busy throughout 2008, executing contracts for a variety of clients
including LeTourneau Technologies Drilling Systems Inc ("LTI"), Nabors Drilling,
KCA Deutag and Ensign. Projects executed during 2008 included the new build
construction of four fast moving land rigs for LTI, the upgrade and
refurbishment of five land rigs, as well as the construction of land camps and
the inspection and overhaul of mechanical and rotary equipment. In addition to
these projects, we also executed a number of minor offsite projects to assist
our clients by providing our services on location at drilling sites.
Engineering, Procurement and Construction ("EPC")
Throughout 2008 Lamprell continued the construction of a range of major EPC new
build projects. These projects are being executed at both our Jebel Ali and
Hamriyah Free Zone facilities.
Seajacks liftboats
Throughout 2008 we have continued the construction of two harsh environment
special purpose self-propelled four legged jackup "liftboats" for Seajacks
International Limited. These turnkey contracts cover all aspects of project
execution from design to delivery. The first unit, the Seajacks Kraken was
loaded out from our Jebel Ali facility in September 2008 and transported to our
Hamriyah facility for completion and commissioning. The Kraken was subsequently
successfully delivered to Seajacks in March 2009. The second liftboat, Seajacks
Leviathan, will be delivered to Seajacks later in 2009.
Scorpion S116E jackup drilling rigs
Throughout 2008 construction has continued at Lamprell's Hamriyah facility on
the Offshore Freedom and Offshore Mischief LeTourneau design S116E jackup
drilling rigs for Scorpion Freedom Ltd and Scorpion Rigs Ltd. The Offshore
Freedom hull was launched using Lamprell's semi-submersible barge, Hamriyah
Pride, in September 2008 and the rig is scheduled for final delivery to Scorpion
in April 2009. The construction of the Offshore Mischief continues in the yard
with the load out of the hull scheduled for later in 2009.
BassDrill tender assist drilling units
In June 2008 we announced the contract award from BassDrill Limited ("BassDrill)
for the construction of two self erecting tender assist drilling units. The
engineering and procurement activities relating to the first unit are now
significantly advanced and construction of the vessel and the modular mast
equipment package is ongoing at our Jebel Ali facility. The first unit will be
delivered later in 2009 and work on the second unit is scheduled to commence
thereafter.
Human resources
Attracting, developing and retaining talented staff is still of paramount
importance to the success of Lamprell as a business. At Lamprell we consider our
employees to be our greatest asset and the continuous development and multi
skilling of our staff remains a focus for our growth success. The Human
Resources Department has developed policies and best practices for effective
employee management enabling managers to capitalise on the strengths of the
employees and their ability to contribute to the accomplishment of work. It is
recognised that successful employee management helps employee motivation,
employee development, and employee retention.
Retention was an issue of concern for all major players in the oil and gas
industry at the beginning of the year. However at Lamprell the retention issues
were minimised due to the Company's successful benchmarking, job matching and
"career ladder" methodologies. This was combined with communication of clear
expectations to the employee, providing frequent feedback and making the
employee feel valued.
The provision of purpose built accommodation and transportation for the labour
force further enhanced our ability to manage the retention issues and
dramatically improved the quality and work life balance expectations of the
employees.
We aim to provide a safe and supportive work environment to our employees from
diverse cultural backgrounds and in an environment that provides a competitive
compensation programme that is affordable to the Company. We believe this
continues to be our market differentiator and will strengthen our position as an
"employer of choice". These will continue to be our goals in 2009 and beyond.
The HR department continues to work closely with senior business leaders on
strategy execution, in particular designing HR systems and processes that
address strategic business issues, organisational and people capability
building, longer term resource and talent management planning, and intelligence
gathering of good people management practices internally and externally.
General Recruitment
The recruitment drive continues with over 5400 permanent staff in the Company at
the end of 2008, a 26% increase in headcount during the year. Our search for new
and talented staff is a continual process as a result of the competitive market
in which the Company operates. As a result of the growth that Lamprell has
experienced, we aim to recruit staff with the requisite skills and professional
experience to add value to the Company and the service which we offer to our
clients. This is particularly so in the areas of engineering and project
management, where we clearly differentiate ourselves from our competitors.
Operating facilities
In accordance with our strategy to promote organic growth we maintained our
capital investment program throughout 2008. The aim of this investment is to
increase our capacity, increase our existing levels of productivity and improve
the working environment for both yard and administrative personnel.
The construction of our new 250,000m2 facility in the Hamriyah free zone is
continuing and remains an exciting focus point of Lamprell's development. The
dredging work is now complete and the 1.25km quay wall is close to completion,
with the inner basin having been completed in early 2009. In addition, the
construction of the main office, client office and main workshops are all
ongoing and several construction areas have been completed. As planned we now
expect that the first jackup drilling rig will undergo refurbishment work at the
quayside during March 2009.
In May 2008 Lamprell signed an initial five year lease for a 46,950m2 facility
with 158 meters of exclusive deep water quay side in Sattahip, Thailand. The
facility has subsequently been enhanced with offices, fabrication areas and
equipment and the first revenue generating project, Rig Ensco 51 arrived at the
facility in the first quarter of 2009 for minor refurbishment works.
In Jebel Ali we completed the construction of an extension to our existing
production facility. This building has three levels and it provides increased
covered storage capacity on the ground floor with additional office space for
project personnel on the first and second floors.
During the year our investment in operating equipment also continued including
mobile cranes, forklift trucks, generators and automated welding equipment.
Nigel McCue
Chief Operating Officer
Financial Review
Results for the year from operations
+------------------------+--------------------+--------------+-------------+
| | 2008 (US$m) | 2007 (US$m) | Change |
+------------------------+--------------------+--------------+-------------+
| Revenue | 740.8 | 467.3 | 58.5% |
+------------------------+--------------------+--------------+-------------+
| Gross profit | 129.3 | 107.8 | 19.9% |
+------------------------+--------------------+--------------+-------------+
| Adjusted EBITDA * | 102.3 | 89.5 | 14.3% |
+------------------------+--------------------+--------------+-------------+
| Adjusted EBITDA | 13.8% | 19.1% | |
| margin * | | | |
+------------------------+--------------------+--------------+-------------+
| Adjusted operating | 92.5 | 82.0 | 12.8% |
| profit * | | | |
+------------------------+--------------------+--------------+-------------+
| Adjusted operating | 12.5% | 17.5% | |
| margin * | | | |
+------------------------+--------------------+--------------+-------------+
| Adjusted net profit * | 95.5 | 86.2 | 10.8% |
+------------------------+--------------------+--------------+-------------+
| Adjusted net margin * | 12.9% | 18.4% | |
+------------------------+--------------------+--------------+-------------+
| Adjusted diluted | 47.58c | 43.04c | 10.5% |
| earnings per share * | | | |
+------------------------+--------------------+--------------+-------------+
* For the current year stated before reflecting exceptional charges for share
based payments of US$ 6.6 million (2007: US$ 14.7 million) granted to certain
directors and selected management personnel pre IPO, and before reflecting
various legal and professional charges amounting to US$ 3.4 million (2007: US$
nil) incurred in connection with the admission of Lamprell plc to the Main
Market of the London Stock Exchange plc.
Group revenue increased by 58.5% to US$ 740.8 million (2007: US$ 467.3 million)
reflecting strong growth over the prior year. This growth was largely driven by
a significant increase in revenue generated from EPC projects comprising three
new build jackups, two liftboats and the first self erecting tender assist
drilling unit. Revenue from other key activities reflected a strong performance
but generally was lower than 2007 as the prior year reflected exceptional
revenues, particularly with respect to jackup rig upgrade and refurbishment
activities. The offshore new build activity, based in Jebel Ali, also reflected
a lower level of revenue for the year with projects largely being completed in
the first half of the year and no significant new projects planned to commence
until H1 2009. Revenue from Oilfield Engineering services, related to the
refurbishment and construction of land rigs and land camps, reflected initial
revenues from the construction of four new build fast moving land rigs under a
contract with LeTourneau Drilling Systems Inc. The Group revenue includes the
results of International Inspection Services Limited, with revenue growth
resulting from a significant increase in the demand for the inspection and
non-destructive testing services the subsidiary provides.
Gross profit increased by 19.9% to US$ 129.3 million (2007: US$ 107.8 million)
resulting in a gross margin of 17.5% (2007: 23.1%). This decrease is mainly due
to the higher level of lower margin EPC activity, the margin being lower as a
result of the higher level of procurement with respect to both material
purchases and the level of sub-contractor work. In addition, the year reflected
a lower level of higher margin rig refurbishment activity than the prior year
and a lower level of completions of major offshore construction new build
activities undertaken in the Jebel Ali facility. The projects in 2007 reflected
a number of positive variations and also included contract completion bonuses.
Adjusted EBITDA (before exceptional charges) increased to US$ 102.3 million
(2007: US$ 89.5 million) reflecting an increase of 14.3% over the prior year.
Adjusted EBITDA margin (before exceptional charges) for the year decreased to
13.8% (2007: 19.1%) largely in line with the decrease in operating margin mainly
reflecting the change in revenue mix with greater contribution to total revenue
by lower margin EPC contracts.
Adjusted operating profit in 2008 (before exceptional charges) was US$ 92.5
million (2007: US$ 82.0 million) reflecting an increase of 12.8%. The
exceptional charges in the current year reflect share based payments of US$ 6.6
million (2007: US$ 14.7 million) related to shares gifted and a deferred share
award in connection with the admission of Lamprell plc to AIM and also before
reflecting various legal and professional charges amounting to US$ 3.4 million
(2007: US$ nil) incurred in connection with the admission of Lamprell plc to the
Main Market of the London Stock Exchange plc. The adjusted operating profit
margin (before exceptional charges) decreased from 17.5% in 2007 to 12.5% in
2008 largely reflecting a decreased gross margin as a result of the change in
revenue mix.
As a result of the strong revenue growth and strong operational performance, the
adjusted net profit (before exceptional charges) increased by 10.8% to US$ 95.5
million (2007: US$ 86.2 million). The adjusted net margin (before exceptional
charges) decreased to 12.9% (2007: 18.4%) primarily due to the decrease in the
Group's operating margin and a decrease in net interest income to US$ 3.0
million (2007: US$ 4.2 million) largely reflecting lower average deposit rates
achieved on cash balances held by the Group during the year.
Interest income
Interest income of US$ 3.0 million (2007: US$ 4.2 million) relates mainly to
bank interest earned on surplus funds deposited on a short term basis with the
Company's bankers. The decrease reflects a lower level of average deposit rates
achieved during the year offset by an increase in average funds on deposit
during 2008 when compared to 2007.
Taxation
The Company, which is incorporated in the Isle of Man, has no income tax
liability for the year ended 31 December 2008 as it is taxable at 0% in line
with local Isle of Man tax legislation. The Group is not currently subject to
income tax in respect of its operations carried out in the United Arab Emirates,
and does not anticipate any liability to income tax arising in the foreseeable
future. On 4 December 2008, Lamprell Asia Limited, was granted Board of
Investment privileges which allows the Company's wholly owned subsidiary in
Thailand to operate with a tax exempt status for a period of up to eight years.
Earnings per share
Fully diluted adjusted earnings per share (before exceptional charges) for 2008
increased to 47.58 cents (2007: 43.04 cents) reflecting primarily the improved
profit of the Group for the year. Fully diluted earnings per share, as reported
in the statutory results, for 2008 increased to 42.59 cents (2007: 35.72 cents).
Operating cash flow and liquidity
The Group's net cash flow from operating activities for the year was US$ 18.3
million (2007: US$ 176.8 million) The net cash flow from operations was lower
than the prior year and mainly reflected increased profit for the period offset
by movements in working capital, largely comprising an increase in trade and
other receivables, including an amount due from a major EPC customer which was
largely cleared subsequent to the year end. Amounts due from customers on
contracts from predominantly EPC projects also increased reflecting the advanced
stages of certain EPC projects. Payments have been received post year end
against these balances.
The amounts due to customers on contracts was US$ 72.5 million (2007 US$ 95.1
million) which includes cash advances due to customers of US$ 31.3 million
(2007: US$ 86.5 million). Other working capital movements reflect timing
differences in respect to other receivables and also supplier commitments
primarily on the larger EPC contracts.
Investing activities for the year absorbed US$ 47.9 million (2007: US$ 21.4
million) as a result of a significant investment in property, plant and
equipment amounting to US$ 54.4 million (2007: US$ 15.0 million) largely
comprising the purchase of operating equipment and investment in new buildings.
This investment activity was offset by interest income of US$ 3.0 million
received from surplus funds and also the release of margin deposits of US$ 3.5
million.
Net cash used in financing activities was US$ 29.4 million (2007: US$ 22.6
million). This represents dividend payments of US$ 37.5 million (2007: US$ 22.5
million) and the purchase of treasury shares to meet the settlement of share
awards to certain directors and staff of US$ 2.6 million. This was offset by an
increase in short term borrowings of US$ 10.7 million.
Capital expenditure
Capital expenditure on property, plant and equipment during the year amounted to
US$ 54.4 million (2007: US$ 15.0 million). The main area of expenditure was the
investment in operating equipment amounting to US$ 23.5 million to support the
growth in activities experienced during the year and to replace hired equipment
where this was deemed cost effective. Expenditure on cranes reflects an
investment of US$ 15.1 million. Further expenditure on buildings and related
infrastructure at Group facilities amounted to US$ 27.1 million, including
capital work-in-progress, with additional committed expenditure amounting to US$
25.4 million reflecting the development of the infrastructure of the Company at
all facilities but primarily expenditure at the new Hamriyah facility.
Shareholders' equity
Shareholders' equity increased from US$ 158.8 million at 31 December 2007 to US$
212.3 million at 31 December 2008. The movement mainly reflects the retained
profits for the year of US$ 85.5 million net of dividends declared of US$ 37.4
million. The movement also reflects a credit for the accounting of share based
payments of US$ 8.1 million made to certain Directors and employees of the Group
and charged to General and Administrative expenses.
Dividends
For the year ended 31 December 2008, the Board of Directors of the Group having
duly considered the current market conditions, profit earned, cash generated
during the year and taking note of the capital commitments for the year 2009,
recommend a final dividend of 3.15 cents per share. If approved this will be
paid to shareholders on 18 June 2009 provided they were on the register on 22
May 2009.
Scott Doak
Chief Financial Officer
Lamprell plc
Consolidated income statement
+-------------------------------------+---------+-----+------------+-+-------------------+
| | | Year ended 31 December |
+-------------------------------------+---------+----------------------------------------+
| | Note | 2008 | 2007 |
+-------------------------------------+---------+--------------------+-------------------+
| | | USD'000 | USD'000 |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Revenue | | 740,831 | 467,332 |
+-------------------------------------+---------+--------------------+-------------------+
| Cost of sales | 2 | (611,528) | (359,532) |
+-------------------------------------+---------+--------------------+-------------------+
| | | ----------------- | ----------------- |
+-------------------------------------+---------+--------------------+-------------------+
| Gross profit | | 129,303 | 107,800 |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Selling and distribution expenses | 3 | (1,874) | (1,395) |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| General and administrative | | | |
| expenses: | | | |
+-------------------------------------+---------+--------------------+-------------------+
| - share based payments | 4 | | (8,059) | (14,942) |
+-------------------------------------+---------+-----+------------+---------------------+
| - others | 5 | | (38,539) | (25,517) |
+-------------------------------------+---------+-----+------------+---------------------+
| | | (46,598) | (40,459) |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Other gains/(losses) - net | | 1,631 | 1,355 |
+-------------------------------------+---------+--------------------+-------------------+
| | | --------------- | --------------- |
+-------------------------------------+---------+--------------------+-------------------+
| Operating profit | | 82,462 | 67,301 |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Interest income | | 2,993 | 4,249 |
+-------------------------------------+---------+--------------------+-------------------+
| | | --------------- | --------------- |
+-------------------------------------+---------+--------------------+-------------------+
| Profit for the year attributable to | | 85,455 | 71,550 |
| | | | |
| equity holders of the Company | | | |
+-------------------------------------+---------+--------------------+-------------------+
| | | ======= | ======= |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Earnings per share attributable | 7 | | |
| to equity holders of the Company | | | |
+-------------------------------------+---------+--------------------+-------------------+
| | | | |
+-------------------------------------+---------+--------------------+-------------------+
| Basic | | 42.73c | 35.78c |
+-------------------------------------+---------+--------------------+-------------------+
| | | ======= | ======= |
+-------------------------------------+---------+--------------------+-------------------+
| Diluted | | 42.59c | 35.72c |
+-------------------------------------+---------+--------------------+-------------------+
| | | ======= | ======= |
+-------------------------------------+---------+-----+------------+-+-------------------+
Consolidated balance sheet
+-----------------------------------------+---------+-------------------+-------------------+
| | | As at 31 December |
+-----------------------------------------+---------+---------------------------------------+
| | Note | 2008 | 2007 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | USD'000 | USD'000 |
+-----------------------------------------+---------+-------------------+-------------------+
| ASSETS | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Non-current assets | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Property, plant and equipment | | 92,354 | 47,766 |
+-----------------------------------------+---------+-------------------+-------------------+
| Intangible asset | | 1,400 | 1,490 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | --------------- | --------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| | | 93,754 | 49,256 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | --------------- | --------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Current assets | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Inventories | 8 | 20,506 | 6,705 |
+-----------------------------------------+---------+-------------------+-------------------+
| Trade and other receivables | 9 | 289,812 | 149,950 |
+-----------------------------------------+---------+-------------------+-------------------+
| Derivative financial instruments | | 50 | 964 |
+-----------------------------------------+---------+-------------------+-------------------+
| Cash and bank balances | 10 | 97,824 | 159,088 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ---------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| | | 408,192 | 316,707 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ----------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Total assets | | 501,946 | 365,963 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ======== | ======== |
+-----------------------------------------+---------+-------------------+-------------------+
| EQUITY AND LIABILITIES | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Capital and reserves | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Share capital | | 18,682 | 18,654 |
+-----------------------------------------+---------+-------------------+-------------------+
| Legal reserve | | 29 | 24 |
+-----------------------------------------+---------+-------------------+-------------------+
| Merger reserve | | (22,422) | (22,422) |
+-----------------------------------------+---------+-------------------+-------------------+
| Translation reserve | | (47) | - |
+-----------------------------------------+---------+-------------------+-------------------+
| Retained earnings | | 216,012 | 162,506 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ---------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Total equity | | 212,254 | 158,762 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ---------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Non-current liabilities | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Provision for employees' end of service | | 14,329 | 9,740 |
| benefits | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| | | --------------- | --------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Current liabilities | | | |
+-----------------------------------------+---------+-------------------+-------------------+
| Trade and other payables | 11 | 263,439 | 197,461 |
+-----------------------------------------+---------+-------------------+-------------------+
| Borrowings | | 11,924 | - |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ----------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| | | 275,363 | 197,461 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ----------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Total liabilities | | 289,692 | 207,201 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ----------------- | ----------------- |
+-----------------------------------------+---------+-------------------+-------------------+
| Total equity and liabilities | | 501,946 | 365,963 |
+-----------------------------------------+---------+-------------------+-------------------+
| | | ======== | ======== |
+-----------------------------------------+---------+-------------------+-------------------+
Consolidated statement of changes in equity
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| |Note | Share | Legal | Merger | Translation | Retained | Total |
| | | capital | reserve | reserve | reserve | earnings | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| | | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 | USD'000 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| At 1 January 2007 | | 18,654 | 22 | (22,422) | - | 93,616 | 89,870 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Profit for the year | | - | - | - | - | 71,550 | 71,550 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Share based | 4 | - | - | - | - | 14,942 | 14,942 |
| payments - value | | | | | | | |
| of services provided | | | | | | | |
| | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Transfer to Legal | | - | 2 | - | - | (2) | - |
| reserve | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Dividends | | - | - | - | - | (17,600) | (17,600) |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| | | ------------ | ------ | -------------- | -------- | ------------ | ----------- |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| At 31 December 2007 | | 18,654 | 24 | (22,422) | - | 162,506 | 158,762 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Shares issued during | | 28 | - | - | - | (28) | - |
| The year | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Profit for the year | | - | - | - | - | 85,455 | 85,455 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Share based | 4 | - | - | - | - | 8,059 | 8,059 |
| payments - value | | | | | | | |
| of services provided | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Treasury shares | | - | - | - | - | (2,625) | (2,625) |
| purchased | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Currency translation | | - | - | - | (47) | - | (47) |
| difference | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Transfer to Legal | | - | 5 | - | - | (5) | - |
| reserve | | | | | | | |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| Dividends | | - | - | - | - | (37,350) | (37,350) |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| | | ----------- | ------ | ------------- | ------ | ------------ | ----------- |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| At 31 December 2008 | | 18,682 | 29 | (22,422) | (47) | 216,012 | 212,254 |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
| | | ======= | === | ======== | === | ======= | ====== |
+----------------------+------+--------------+---------+----------------+-------------+--------------+-------------+
Consolidated cash flow statement
+---------------------------------------------+-------+-------------------+--------------------+
| | | Year ended 31 December |
+---------------------------------------------+-------+----------------------------------------+
| | Note | 2008 | 2007 |
+---------------------------------------------+-------+-------------------+--------------------+
| | | USD'000 | USD'000 |
+---------------------------------------------+-------+-------------------+--------------------+
| Operating activities | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Profit for the year | | 85,455 | 71,550 |
+---------------------------------------------+-------+-------------------+--------------------+
| Adjustments for: | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Share based payments - value of services | 4 | 8,059 | 14,942 |
| provided | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Unrealised fair value loss/(gain) on | | 31 | (964) |
| derivative | | | |
| financial instruments | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Depreciation | | 9,756 | 7,485 |
+---------------------------------------------+-------+-------------------+--------------------+
| Amortisation of intangible asset | | 90 | 44 |
+---------------------------------------------+-------+-------------------+--------------------+
| Loss/(profit) on disposal of property, | | 5 | (4) |
| plant and equipment | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Provision/(release) for slow moving and | 8 | 195 | (657) |
| obsolete | | | |
| inventories | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Provision for impairment of trade | | 2,741 | 17 |
| receivables, net | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Provision for employees' end of service | | 5,300 | 2,215 |
| benefits | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Interest income | | (2,993) | (4,249) |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Operating cash flows before payment of | | 108,639 | 90,379 |
| employees' end of service benefits and | | | |
| changes in working capital | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Payment of employees' end of service | | (711) | (514) |
| Benefits | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Changes in working capital: | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Inventories before movement in provision | | (13,996) | (1,517) |
+---------------------------------------------+-------+-------------------+--------------------+
| Trade and other receivables before movement | | (142,603) | (36,459) |
| in provision for impairment of trade | | | |
| receivables | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Trade and other payables excluding unpaid | | 66,112 | 124,914 |
| dividend | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Derivative financial instruments | | 883 | - |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Net cash generated from operating | | 18,324 | 176,803 |
| activities | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Investing activities | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Payments for property, plant and | | (54,444) | (14,978) |
| equipment | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Acquisition of a subsidiary net of cash | | - | (1,586) |
| acquired | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Proceeds from sale of property, plant and | | 95 | 378 |
| equipment | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Interest income | | 2,993 | 4,249 |
+---------------------------------------------+-------+-------------------+--------------------+
| Payments for acquisition of Inspec | | - | (3,000) |
+---------------------------------------------+-------+-------------------+--------------------+
| Movement in margin deposits | 10 | 3,456 | (6,457) |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Net cash used in investing activities | | (47,900) | (21,394) |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Financing activities | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Due to a related party net of unpaid | | - | (98) |
| dividend | | | |
| and purchase consideration payable for | | | |
| acquisition of Inspec | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Treasury shares purchased | | (2,625) | - |
+---------------------------------------------+-------+-------------------+--------------------+
| Dividends paid | | (37,484) | (22,457) |
+---------------------------------------------+-------+-------------------+--------------------+
| Borrowings - revolving facility | | 10,693 | - |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Net cash used in financing activities | | (29,416) | (22,555) |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ----------------- |
+---------------------------------------------+-------+-------------------+--------------------+
| Net (decrease)/increase in cash and cash | | (58,992) | 132,854 |
| equivalents | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Cash and cash equivalents, beginning of the | | 149,264 | 16,410 |
| year | | | |
+---------------------------------------------+-------+-------------------+--------------------+
| Exchange rate translation | | (47) | - |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ----------------- | ------------------ |
+---------------------------------------------+-------+-------------------+--------------------+
| Cash and cash equivalents, end of the year | 10 | 90,225 | 149,264 |
+---------------------------------------------+-------+-------------------+--------------------+
| | | ======== | ======== |
+---------------------------------------------+-------+-------------------+--------------------+
Notes to the financial information for the year ended 31 December 2008
1 General information and basis of preparation
Lamprell plc ("the Company") and its subsidiaries ("the Group") are engaged in
the upgrade and refurbishment of offshore jackup rigs, fabrication, assembly and
new build construction for the offshore oil and gas sector, including jackup
rigs, FPSO's and other offshore and onshore structures, oilfield engineering
services, including the upgrade and refurbishment of land rigs. The address of
the principal place of business is PO Box 5427, Dubai, UAE.
The audit report on the annual consolidated financial statements of Lamprell plc
for the year ended 31 December 2008 was signed on 27 March 2009. This financial
information has been extracted without adjustment from those audited financial
statements. Copies of the annual report and financial statements will be
circulated to shareholders at least 20 days in advance of the AGM.
2Cost of sales
+----------------------------------------------------+-------------------+-------------------+
| | 2008 | 2007 |
+----------------------------------------------------+-------------------+-------------------+
| | USD'000 | USD'000 |
+----------------------------------------------------+-------------------+-------------------+
| | | |
+----------------------------------------------------+-------------------+-------------------+
| Materials and related costs | 254,969 | 146,019 |
+----------------------------------------------------+-------------------+-------------------+
| Sub-contract costs | 162,126 | 82,860 |
+----------------------------------------------------+-------------------+-------------------+
| Staff costs (Note 6) | 100,507 | 67,095 |
+----------------------------------------------------+-------------------+-------------------+
| Sub-contract labour | 36,326 | 27,586 |
+----------------------------------------------------+-------------------+-------------------+
| Equipment hire | 16,502 | 8,392 |
+----------------------------------------------------+-------------------+-------------------+
| Repairs and maintenance | 9,134 | 4,968 |
+----------------------------------------------------+-------------------+-------------------+
| Depreciation | 6,891 | 4,978 |
+----------------------------------------------------+-------------------+-------------------+
| Yard rent | 1,307 | 2,511 |
+----------------------------------------------------+-------------------+-------------------+
| Others | 23,766 | 15,123 |
+----------------------------------------------------+-------------------+-------------------+
| | ----------------- | ----------------- |
+----------------------------------------------------+-------------------+-------------------+
| | 611,528 | 359,532 |
+----------------------------------------------------+-------------------+-------------------+
| | ======== | ======== |
+----------------------------------------------------+-------------------+-------------------+
3Selling and distribution expenses
+----------------------------------------------------+------------+---------------+
| | | |
+----------------------------------------------------+------------+---------------+
| Advertisement and marketing | 512 | 436 |
+----------------------------------------------------+------------+---------------+
| Entertainment | 172 | 187 |
+----------------------------------------------------+------------+---------------+
| Travel | 802 | 324 |
+----------------------------------------------------+------------+---------------+
| Other expenses | 388 | 448 |
+----------------------------------------------------+------------+---------------+
| | ---------- | ----------- |
+----------------------------------------------------+------------+---------------+
| | 1,874 | 1,395 |
+----------------------------------------------------+------------+---------------+
| | ===== | ===== |
+----------------------------------------------------+------------+---------------+
4General and administrative expenses - share based payments
+----------------------------------------------------+-------------+---------------+
| | 2008 | 2007 |
+----------------------------------------------------+-------------+---------------+
| | USD'000 | USD'000 |
+----------------------------------------------------+-------------+---------------+
| | | |
+----------------------------------------------------+-------------+---------------+
| Proportionate amount of share based charge for the | | |
| year: | | |
+----------------------------------------------------+-------------+---------------+
| - relating to shares gifted/granted in 2006 | 5,301 | 13,276 |
+----------------------------------------------------+-------------+---------------+
| - relating to deferred share award in 2006 | 1,331 | 1,382 |
+----------------------------------------------------+-------------+---------------+
| - relating to Free Share Plan | 1,337 | 228 |
+----------------------------------------------------+-------------+---------------+
| - relating to Executive Share Option Plan | 90 | 56 |
+----------------------------------------------------+-------------+---------------+
| | ----------- | ------------ |
+----------------------------------------------------+-------------+---------------+
| | 8,059 | 14,942 |
+----------------------------------------------------+-------------+---------------+
| | ===== | ====== |
+----------------------------------------------------+-------------+---------------+
5General and administrative expenses - others
+----------------------------------------------------+----------------+----------------+
| | | |
+----------------------------------------------------+----------------+----------------+
| Staff costs (Note 6) | 21,312 | 15,450 |
+----------------------------------------------------+----------------+----------------+
| Utilities and communication | 2,348 | 1,548 |
+----------------------------------------------------+----------------+----------------+
| Depreciation | 2,865 | 2,507 |
+----------------------------------------------------+----------------+----------------+
| Other expenses | 12,014 | 6,012 |
+----------------------------------------------------+----------------+----------------+
| | -------------- | -------------- |
+----------------------------------------------------+----------------+----------------+
| | 38,539 | 25,517 |
+----------------------------------------------------+----------------+----------------+
| | ======= | ======= |
+----------------------------------------------------+----------------+----------------+
Other expenses for the year 2008 include USD 3.4 million incurred mainly towards
various legal and professional charges in connection with the admission of
Lamprell plc to the official list of the LSE and provision for doubtful debts of
USD 2.8 million (2007: USD 0.02 million) (Note 9).
6Staff costs
+----------------------------------------------------+------------------+------------------+
| | 2008 | 2007 |
+----------------------------------------------------+------------------+------------------+
| | USD'000 | USD'000 |
+----------------------------------------------------+------------------+------------------+
| | | |
+----------------------------------------------------+------------------+------------------+
| Wages and salaries | 73,631 | 53,283 |
+----------------------------------------------------+------------------+------------------+
| Employees' end of service benefits | 5,300 | 2,215 |
+----------------------------------------------------+------------------+------------------+
| Share based payments - value of services provided | 8,059 | 14,942 |
| (Note 4) | | |
+----------------------------------------------------+------------------+------------------+
| Other benefits | 42,888 | 27,047 |
+----------------------------------------------------+------------------+------------------+
| | ---------------- | ---------------- |
+----------------------------------------------------+------------------+------------------+
| | 129,878 | 97,487 |
+----------------------------------------------------+------------------+------------------+
| | ======== | ======= |
+----------------------------------------------------+------------------+------------------+
| Staff costs are included in: | | |
+----------------------------------------------------+------------------+------------------+
| Cost of sales (Note 2) | 100,507 | 67,095 |
+----------------------------------------------------+------------------+------------------+
| General and administrative expenses - share based | 8,059 | 14,942 |
| payments (Note 4) | | |
+----------------------------------------------------+------------------+------------------+
| General and administrative expenses - others (Note | 21,312 | 15,450 |
| 5) | | |
+----------------------------------------------------+------------------+------------------+
| | ---------------- | --------------- |
+----------------------------------------------------+------------------+------------------+
| | 129,878 | 97,487 |
+----------------------------------------------------+------------------+------------------+
| | ======== | ======= |
+----------------------------------------------------+------------------+------------------+
| Number of employees at 31 December | 5,447 | 4,331 |
+----------------------------------------------------+------------------+------------------+
| | ======== | ======= |
+----------------------------------------------------+------------------+------------------+
7Earnings per share
+----------------------------------------------------+------------------+------------------+
| | 2008 | 2007 |
| | USD'000 | USD'000 |
+----------------------------------------------------+------------------+------------------+
| The calculations of earnings per share are based | | |
| on the | | |
| following profit and numbers of shares: | | |
+----------------------------------------------------+------------------+------------------+
| | | |
+----------------------------------------------------+------------------+------------------+
| Profit for the year | 85,455 | 71,550 |
+----------------------------------------------------+------------------+------------------+
| | ---------------- | ---------------- |
+----------------------------------------------------+------------------+------------------+
| | | |
+----------------------------------------------------+------------------+------------------+
| Weighted average number of shares for | 200,010,565 | 200,000,000 |
| basic earnings | | |
| per share | | |
+----------------------------------------------------+------------------+------------------+
| | | |
+----------------------------------------------------+------------------+------------------+
| Adjustments for: | | |
+----------------------------------------------------+------------------+------------------+
| Assumed vesting of deferred share awards | 576,844 | 249,275 |
+----------------------------------------------------+------------------+------------------+
| Assumed exercise of free share awards | 75,778 | 52,766 |
+----------------------------------------------------+------------------+------------------+
| | --------------- | -------------- |
+----------------------------------------------------+------------------+------------------+
| Weighted average number of shares for diluted | 200,663,187 | 200,302,041 |
| earnings | | |
| per share | | |
+----------------------------------------------------+------------------+------------------+
| | ---------------- | --------------- |
+----------------------------------------------------+------------------+------------------+
| | | |
+----------------------------------------------------+------------------+------------------+
| Earnings per share: | | |
+----------------------------------------------------+------------------+------------------+
| Basic | 42.73c | 35.78c |
+----------------------------------------------------+------------------+------------------+
| | =========== | =========== |
+----------------------------------------------------+------------------+------------------+
| Diluted | 42.59c | 35.72c |
+----------------------------------------------------+------------------+------------------+
| | =========== | =========== |
+----------------------------------------------------+------------------+------------------+
8 Inventories
+----------------------------------------------------+-----------------+---------------+
| | | |
+----------------------------------------------------+-----------------+---------------+
| Raw materials and consumables | 11,494 | 7,052 |
+----------------------------------------------------+-----------------+---------------+
| Goods in transit | 9,554 | - |
+----------------------------------------------------+-----------------+---------------+
| Less: Provision for slow moving and obsolete | (542) | (347) |
| inventories | | |
+----------------------------------------------------+-----------------+---------------+
| | --------------- | ---------- |
+----------------------------------------------------+-----------------+---------------+
| | 20,506 | 6,705 |
+----------------------------------------------------+-----------------+---------------+
| | ======= | ===== |
+----------------------------------------------------+-----------------+---------------+
9Trade and other receivables
+----------------------------------------------------+-------------------+-------------------+
| | | |
+----------------------------------------------------+-------------------+-------------------+
| Trade receivables | 120,517 | 58,565 |
+----------------------------------------------------+-------------------+-------------------+
| Other receivables and prepayments | 16,385 | 12,571 |
+----------------------------------------------------+-------------------+-------------------+
| Advances to suppliers | 22,239 | - |
+----------------------------------------------------+-------------------+-------------------+
| | ---------------- | --------------- |
+----------------------------------------------------+-------------------+-------------------+
| | 159,141 | 71,136 |
+----------------------------------------------------+-------------------+-------------------+
| Less: Provision for impairment of trade | (2,788) | (87) |
| receivables | | |
+----------------------------------------------------+-------------------+-------------------+
| | ---------------- | ---------------- |
+----------------------------------------------------+-------------------+-------------------+
| | 156,353 | 71,049 |
+----------------------------------------------------+-------------------+-------------------+
| Amounts due from customers on contracts | 103,846 | 24,868 |
+----------------------------------------------------+-------------------+-------------------+
| Contract work in progress | 29,613 | 54,033 |
+----------------------------------------------------+-------------------+-------------------+
| | ----------------- | ----------------- |
+----------------------------------------------------+-------------------+-------------------+
| | 289,812 | 149,950 |
+----------------------------------------------------+-------------------+-------------------+
| | ======== | ======== |
+----------------------------------------------------+-------------------+-------------------+
10Cash and bank balances
+----------------------------------------------------+-----------------+-------------------+
| | 2008 | 2007 |
+----------------------------------------------------+-----------------+-------------------+
| | USD'000 | USD'000 |
+----------------------------------------------------+-----------------+-------------------+
| | | |
+----------------------------------------------------+-----------------+-------------------+
| Cash at bank and on hand | 21,112 | 11,828 |
+----------------------------------------------------+-----------------+-------------------+
| Short term and margin deposits | 76,712 | 147,260 |
+----------------------------------------------------+-----------------+-------------------+
| | --------------- | --------------- |
+----------------------------------------------------+-----------------+-------------------+
| Cash and bank balances | 97,824 | 159,088 |
+----------------------------------------------------+-----------------+-------------------+
| Less: Margin deposits | (6,368) | (9,824) |
+----------------------------------------------------+-----------------+-------------------+
| Less: Bank overdrafts | (1,231) | - |
+----------------------------------------------------+-----------------+-------------------+
| | --------------- | ----------------- |
+----------------------------------------------------+-----------------+-------------------+
| Cash and cash equivalents (for cash flow purpose) | 90,225 | 149,264 |
+----------------------------------------------------+-----------------+-------------------+
| | ======= | ======== |
+----------------------------------------------------+-----------------+-------------------+
At 31 December 2008 and 2007, the cash at bank and short term deposits were held
with six banks. The effective interest rate on short term deposits was 2.79%
(2007: 4.68%) per annum. These deposits have an average maturity of seven days
to one month. The margin deposits with the bank are held under lien against
guarantees issued.
11Trade and other payables
+----------------------------------------------------+-------------------+----------------+
| | 2008 | 2007 |
+----------------------------------------------------+-------------------+----------------+
| | USD'000 | USD'000 |
+----------------------------------------------------+-------------------+----------------+
| | | |
+----------------------------------------------------+-------------------+----------------+
| Trade payables | 83,778 | 24,329 |
+----------------------------------------------------+-------------------+----------------+
| Other payables and accruals | 105,552 | 52,902 |
+----------------------------------------------------+-------------------+----------------+
| Amounts due to customers on contracts | 72,479 | 95,087 |
+----------------------------------------------------+-------------------+----------------+
| Advances received for contract work | 1,621 | 25,000 |
+----------------------------------------------------+-------------------+----------------+
| Dividend payable | 9 | 143 |
+----------------------------------------------------+-------------------+----------------+
| | ----------------- | -------------- |
+----------------------------------------------------+-------------------+----------------+
| | 263,439 | 197,461 |
+----------------------------------------------------+-------------------+----------------+
| | ======== | ======= |
+----------------------------------------------------+-------------------+----------------+
| Amounts due to customers on contracts comprise: | | |
+----------------------------------------------------+-------------------+----------------+
| Progress billings | 375,806 | 302,710 |
+----------------------------------------------------+-------------------+----------------+
| Less : Cost incurred to date | (247,401) | (165,495) |
+----------------------------------------------------+-------------------+----------------+
| Less : Attributable profits | (55,926) | (42,128) |
+----------------------------------------------------+-------------------+----------------+
| | -------------- | -------------- |
+----------------------------------------------------+-------------------+----------------+
| | 72,479 | 95,087 |
+----------------------------------------------------+-------------------+----------------+
| | ======= | ======= |
+----------------------------------------------------+-------------------+----------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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