Lamprell plc Delivery of jackup rig delayed (1890F)
July 26 2016 - 02:01AM
UK Regulatory
TIDMLAM
RNS Number : 1890F
Lamprell plc
26 July 2016
26 July 2016
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
DELIVERY OF JACKUP RIG DELAYED
Lamprell (ticker: LAM), a leading provider of diversified
fabrication, engineering and contracting services to the energy
industry, announces that delivery of the jackup drilling rig which
had been scheduled for delivery in Q2 2016 has been delayed. The
rig is in its final stages of commissioning and has undergone a
series of equipment proving tests in anticipation of delivery to
the client. During this final testing, a technical issue has arisen
with equipment supplied by an original equipment manufacturer
("OEM") and this has resulted in a delay to the delivery of the
rig. In all other respects, Lamprell has completed its workscope in
making the rig ready for delivery. Lamprell has worked with the
client and the OEM's technical experts, and has a forward work
programme to deliver the rig to both Lamprell's and the client's
high standards of quality.
The revised date for delivery of the rig is now expected to be
mid-August. The resultant delay in the delivery means that the
Group could be exposed to contractual remedies on the project
including liquidated damages. However, the Board anticipates that
the majority of the remedial costs and potential damages exposure
as a result of this delay will be recoverable from the OEM. The
Board is fully committed to recover such costs and damages legally,
if so required. Apart from the delivery of this rig, all other six
rigs that Lamprell are currently constructing remain on
schedule.
More broadly, the market environment remains very challenging
and this will impact our revenues in 2017. We will be providing
guidance on this with our interim results on 22 September. Despite
the difficult environment, our balance sheet and cash position
remain strong and we have significant flexibility to further reduce
our overhead costs if necessary.
John Kennedy, Executive Chairman for Lamprell, said:
"We are disappointed to experience this delay in the delivery of
a rig project to one of our key clients. This has been caused by
technical issues with critical equipment from an OEM and our
project team is working closely, with both the OEM's technical
experts and the client's project team, to resolve these issues and
we believe we have a good recovery plan in place. We are committed
to delivering the rig as soon as possible to our high standards of
quality and reliability and to successfully completing all of our
other rig projects."
The Group's 2016 interim financial results are expected to be
announced on 22 September 2016.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
- Ends -
Enquiries:
Lamprell plc
John Kennedy, Executive
Chairman +971 (0) 4 803 9308
James Moffat, Chief Executive
Officer +971 (0) 4 803 9308
Tony Wright, Chief Financial
Officer +971 (0) 4 803 9308
Natalia Erikssen, Investor
Relations +44 (0) 7885 522989
Tulchan Communications,
London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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