Lamprell plc Pre-close Trading Statement (4443R)
June 29 2015 - 2:00AM
UK Regulatory
TIDMLAM
RNS Number : 4443R
Lamprell plc
29 June 2015
29 June 2015
LAMPRELL PLC
("Lamprell" or "Company" and with its subsidiaries the
"Group")
PRE-CLOSE TRADING UPDATE
Lamprell (ticker: LAM), a leading provider of fabrication,
engineering and contracting services to the onshore and offshore
oil & gas and renewable energy industries, issues the following
pre-close trading update for the period from 1 January 2015 to
date.
The Group is on track to deliver results for 2015 in-line with
previous guidance. The Group has continued to see strong
operational and financial performance in 2015 with the delivery of
three major projects during the first half of the year. The
measures to improve business efficiencies and reduce overheads
across the Group are moving ahead as planned and all ongoing major
projects are progressing well. There are currently six jackup rigs
under construction in the Hamriyah facility and this will increase
to seven concurrent rig construction projects in 2H2015. The
piperack modules construction project for Petrofac, which is being
undertaken in our Jebel Ali facility, is progressing well with
initial modules to be delivered later this year.
Following the announcement on 2 December 2014 and satisfaction
of the conditions, the Group completed the disposal of one of its
smaller non-core service businesses, Litwin PEL LLC, in April.
In April, Lamprell announced the award by National Drilling
Company for another new build jackup rig, the ninth in a series of
such rigs. NDC has further options for Lamprell to build up to an
additional two jackup rigs of the same design, which run to 3Q
2015. In addition, the Group continued to see demand for smaller
projects in other core markets. Among these, the Group secured an
order for five additional piperacks and one module for an existing
client and a contract award for suction caps and buoyancy tanks
from a new client. Both the rig refurbishment and the land rig
services business units have seen steady starts to the year with
several awards from new and existing clients.
As anticipated, we have seen customers delaying some project
sanctions for discretionary capital spend but Lamprell's bidding
pipeline remains strong amid the challenging market conditions as a
result of its high standards of quality and safety, competitive
pricing and market leading operational performance. The Group's
focus remains firmly on the conversion of a range of substantial
bidding opportunities in the coming months. A degree of uncertainty
remains as to the impact of the market environment on the
sector.
With the solid start to the year, the Company expects that the
full-year financial performance will be in line with previous
guidance. As previously indicated, the Group's results for 2015 are
expected to be heavily weighted towards the second half of the year
reflecting the phasing of project deliveries, with a number of new
major projects ramping up during the second half of the year.
James Moffat, Chief Executive Officer, Lamprell, said:
"We expected that 2015 was going to be a challenging year but we
have made good progress during the first half of the year, both in
terms of delivering projects to clients as promised and
implementing our efficiency and productivity programme. We have
proven our ability to win new work in a challenging market
environment and our bidding pipeline remains strong. We will
continue to focus on maintaining our competitive position in the
sector and remain confident of our ability to win our share of new
projects."
- Ends -
Enquiries:
Lamprell plc
James Moffat, Chief Executive
Officer +971 (0) 4 803 9308
Tony Wright, Deputy Chief Financial
Officer +971 (0) 4 803 9308
Natalia Erikssen, Investor Relations +44 (0) 7885 522989
Tulchan Communications, London
Martin Robinson +44 (0) 207353 4200
Martin Pengelley
This information is provided by RNS
The company news service from the London Stock Exchange
END
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