Lamprell plc Jackup rig Delivered and Settlement Reached (3074I)
August 26 2016 - 12:45PM
UK Regulatory
TIDMLAM
RNS Number : 3074I
Lamprell plc
26 August 2016
26 August 2016
LAMPRELL PLC
("Lamprell" or "Company" and with its subsidiaries the
"Group")
Jackup rig Successfully Delivered and Settlement Agreement
Reached
Lamprell (ticker: LAM), a leading provider of fabrication,
engineering and contracting services to the energy industry,
announces that it has successfully delivered the "Ensco 140"
LeTourneau-designed, Super 116E (Enhanced) Class mobile offshore
drilling unit to Ensco. On 26 July 2016, Lamprell disclosed a delay
in the rig's delivery and the resultant potential exposure to
remedial costs and liquidated damages. Today, the Company announces
that it has signed an agreement with the client to settle all
claims arising from the late delivery of the rig.
The settlement agreement comprises a deduction of US$25 million
from the final milestone payment in respect of late delivery. As
part of the settlement, Lamprell will also provide additional
services for the "Ensco 140 and 141" rigs, including temporary
storage and grant an extended warranty for the jacking equipment
supplied by the original equipment manufacturer, Cameron LeTourneau
("Cameron").
As a result of the settlement agreement, Lamprell's expected
2016 revenue will be reduced by US$25 million and the Company
anticipates a reduction of around US$35 million on its expected
2016 profit. Further guidance for financial performance will be
provided at the time of the announcement of the Group's interim
results on 22 September 2016. Lamprell retains a positive net cash
position and a healthy balance sheet which will be strengthened as
the Group completes and delivers the six ongoing rig projects over
the coming eight months.
Lamprell is committed to delivering projects safely, on time, on
budget and to high quality standards. The late delivery of the
"Ensco 140" rig was caused by failures in the jacking equipment
that Cameron supplied. Lamprell has successfully implemented a
solution for this issue on the "Ensco 140" rig and the Group
expects to deliver the other six projects as planned. Lamprell's
Board is fully committed to recovering the remedial costs arising
from the technical defects in the jacking equipment from Cameron as
well as seeking compensation from Cameron.
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
MSCQQLFLQVFFBBQ
(END) Dow Jones Newswires
August 26, 2016 12:45 ET (16:45 GMT)
Lamprell (LSE:LAM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lamprell (LSE:LAM)
Historical Stock Chart
From Apr 2023 to Apr 2024