Lamprell plc Trading update (1432H)
November 27 2015 - 2:00AM
UK Regulatory
TIDMLAM
RNS Number : 1432H
Lamprell plc
27 November 2015
27 November 2015
LAMPRELL PLC
("Lamprell" or "Company" and with its subsidiaries the
"Group")
TRADING UPDATE
Strong operational performance and on track to deliver 2015
results in line with previous guidance
Lamprell (ticker: LAM), a leading provider of fabrication,
engineering and contracting services to the energy industry, issues
the following trading update for the period from 27 August 2015 to
date.
The Group continues to deliver strong operational performance
across all of its facilities. All current projects are progressing
well and Lamprell's yards are seeing high levels of activity. In
the last few weeks the Company successfully completed the load out
of the first pipe racks for the UZ750 project, which will be
installed in Abu Dhabi, with other phased deliveries to be made in
the coming months. This project also achieved a major milestone by
reaching two million manhours without a day away from work case,
with the Jebel Ali yard now having operated for more than three
years without a single day away from work case. The Group has seen
further awards from Petrofac and as a result the original contract
award of 26 pre-assembled racks has now grown to a total of 45
pre-assembled racks, units and modules.
There are currently seven concurrent jackup rigs being
constructed in the Hamriyah yard, a record for the Group, which was
made possible following the recent completion of the yard
optimisation measures. The implementation of Project Evolution is
progressing well, with most of the activities completed and the
remainder to be delivered in early 2016. In November the panel line
achieved its full run-rate of six panels a day. The savings and
efficiency benefits resulting from this investment programme are
contributing to maintaining the Group's competitive position, by
offsetting some of the pressure on margins experienced in the
currently challenging environment worldwide in the oil & gas
services sector.
The Group remains on track to deliver 2015 results in line with
previous guidance. As previously indicated, Lamprell's results for
2015 will be heavily weighted towards the second half of the year
due to the phasing of construction. As a result, over the last few
months, the Group has increased its project workforce by
approximately 1,500 people in line with the increased activity.
The rig refurbishment segment, as previously reported, is
experiencing modest levels of new awards reflecting subdued levels
of activity as compared to last year. Separately, our clients have
been using Lamprell's facilities to stack their rigs, with a total
of eight rigs currently located across our yards. In addition,
Lamprell has started the process of marketing its first land rig
based on its own proprietary design. There has been considerable
interest in the rig and the Group will be giving demonstrations of
its capabilities to clients during the coming months.
The Group has maintained its strong pipeline with high levels of
bidding for new work, although the number of projects proceeding to
award has suffered from the current market challenges. Whilst
Lamprell's overall bid-to-win ratio has remained healthy throughout
the year, the number of awards has slowed down across the sector,
which has impacted the speed of the conversion of the pipeline into
backlog. The Group continues to view its exposure to the Middle
East region as an important factor in its current and near-term
business performance, and is targeting a number of major regional
projects for conversion into backlog. The Group recently agreed
with its largest client, the National Drilling Company of Abu Dhabi
("NDC"), to extend the outstanding two options and a new additional
one, on its next jackup rigs, now due to expire at the end of the
first quarter of 2016.
The search for a new Chief Executive Officer to replace James
Moffat following his planned retirement in June 2016 is
progressing. The Board will make further announcements in this
regard in due course.
James Moffat, Chief Executive Officer, Lamprell, said:
"While Lamprell isn't immune to on-going headwinds in the oil
& gas markets, we are pleased to see that our early
implementation of the efficiency measures under Project Evolution
has positioned the Group to be competitive, which will be key for
our future success. These actions have allowed us to retain and
even build our project workforce, improve our efficiency levels to
maintain operational performance, and remain commercially
competitive in an environment of increased pricing pressure. From
this position of relative strength, we remain positive about
Lamprell's longer term prospects as the pipeline is strong with a
firm focus on conversion."
The Group's Full Year 2015 financial results are expected to be
announced on 23 March 2016.
- 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
Martin Pengelley +44 (0) 207353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTDBBDBUXDBGUL
(END) Dow Jones Newswires
November 27, 2015 02:00 ET (07:00 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