Lamprell plc Project Update (9517X)
November 30 2017 - 2:01AM
UK Regulatory
TIDMLAM
RNS Number : 9517X
Lamprell plc
30 November 2017
30 November 2017
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
PROJECT UPDATE
Lamprell provides an update in relation to the East Anglia One
offshore windfarm project. As announced previously, there were
start-up costs and inefficiencies in relation to the project and
the learning curve has proven to be steeper than anticipated.
We remain confident of meeting our client's expectations in
terms of schedule and quality but we will incur extra costs to
achieve this. As a result, we now expect the project to make a
significant loss, which will be booked in 2017.
We are working with our client and supply chain to mitigate the
additional costs. As the Company continues to work through the
variable factors that will ultimately affect the costs on this
project, the Company will be in a position to make an announcement
with respect to the financial impact in due course. While we expect
revenue for FY2017 to be in line with current guidance, we now
expect earnings and EBITDA to be materially below current market
expectations.
The Company continues to maintain a strong balance sheet and its
robust cash position provides confidence in its future.
We remain of the view that the renewables market presents
significant potential for the growth of the Group and we are
convinced that the lessons learned from this first project in the
sector have strengthened our capabilities. This will help to
position us competitively for future project awards.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
- Ends -
Enquiries:
Lamprell plc
Christopher McDonald, Chief
Executive Officer +971 (0) 4 803 9308
Tony Wright, Chief Financial
Officer +971 (0) 4 803 9308
Maria Babkina, Investor Relations +44 (0) 7852 618 046
Tulchan Communications, London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
Legal Entity Identifier of the Company: 2138008NUMXRMIEDF538
Classification: Additional regulated information required to be
disclosed under the laws of a Member State
Notes to editors
Lamprell PLC, based in the United Arab Emirates ("UAE") and with
over 40 years' experience, is a leading provider of fabrication,
engineering and contracting services to the offshore and onshore
oil & gas and renewable energy industries. The Group has
established leading market positions in the fabrication of
shallow-water drilling jackup rigs, liftboats, land rigs, and rig
refurbishment projects, and it also has an international reputation
for building complex offshore and onshore process modules and fixed
platforms.
Lamprell employs more than 7,000 people across multiple
facilities, with its primary facilities located in Hamriyah,
Sharjah and Jebel Ali, all of which are in the UAE. In addition,
the Group has facilities in Saudi Arabia (through a joint venture
agreement). Combined, the Group's facilities cover approximately
828,000 m2 with 1.9 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol
"LAM").
This information is provided by RNS
The company news service from the London Stock Exchange
END
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