RNS Number : 4898Y
Lamprell plc
08 July 2008
8 July 2008
LAMPRELL PLC
("Lamprell" or the "Company" or the "Group")
TRADING UPDATE
FOR THE SIX MONTHS ENDED 30 JUNE 2008
AND US$ 29 MILLION CONTRACT AWARD
Lamprell (ticker: LAM), a leading provider of specialist engineering services to the
international oil & gas industry based in the United
Arab Emirates ("UAE"), today announces its trading update for the six months ended 30 June
2008. The Company expects to announce interim
results for the period on 29 September 2008.
HIGHLIGHTS
* Strong performance across all key business areas;
* Two major contracts awarded with a combined value of US$ 390.5 million, comprising a
contract with Bassdrill Limited for US$ 204.5
million and a contract with Riginvest GP for US$ 186 million, providing further visibility on
revenue; and a new US$ 28.7 million contract
award from Saipem S.p.A;
* Order book as at 30 June 2008 was approximately US$ 890 million (30 April 2008: US$
550 million);
* International expansion with launch of deep water quay side facility in Sattahip,
Thailand, for rig upgrade and refurbishment.
Trading Update
As highlighted in the AGM statement on 11 June 2008, Lamprell has experienced a strong
operational performance across all of its key
business areas in the first half of 2008 and the financial results are expected to be in line
with the Board's expectations.
During this period Lamprell has completed and handed over the Nabors 660 jackup rig to
Nabors Drilling and has delivered a number of
Floating, Production, Storage and Offloading process modules in the first half of 2008. In
addition, the construction phases of the two new
build jackup rig projects for Scorpion Rigs Limited and the two new build liftboat projects
for Seajacks International Limited are
progressing well and are on schedule. A number of new clients were added in the first half of
the year including Hercules Offshore Middle
East Limited, Riginvest GP and BassDrill Limited ("Bassdrill"), and together with the repeat
business the Company receives from existing
customers, the latest contracts have resulted in a record level of contract awards.
The number of rigs upgraded in the Company's facilities and consequential workload are
both in line with internal projections for the
first half of the financial year.
New Contract Awards
Lamprell is pleased to announce that it has been awarded a US$ 28.7 million contract by
Saipem S.p.A ("Saipem"). The contract is for the
construction of two process modules with interconnecting pipe spools for the Livorno Floating
Storage Regasification Unit project. The
modules are scheduled to be delivered in 2010 and this award follows the successful completion
of a similar project for Saipem earlier this
year.
On 16 June Lamprell was delighted to announce a lump sum turnkey contract for the
construction of a LeTourneau Super 116E jackup
drilling rig with a value of US$ 186 million for delivery in June 2010 and on 24 June the
Group announced the largest single contract
awarded to date from BassDrill with a value of US$ 204.5 million. The BassDrill contract is
for the construction of two self erecting tender
assist drilling units, each vessel complete with living accommodation and a modular mast
equipment package. Under the contract, construction
of the first unit is confirmed with work on the second unit conditional upon BassDrill raising
the finance to fund the construction of the
unit. This is another lump sum turnkey contract covering all aspects of the project
execution. It is expected that the first unit will be
delivered in September 2009, with the second unit scheduled for delivery in 2010.
Thailand
In May 2008, the Group signed an initial 5 year lease for a 46,950m2 facility with 158
meters of exclusive deep water quay side in
Sattahip, Thailand. Lamprell believes this expansion provides an excellent opportunity to
transfer the skills and reputation it has built
over many years, through its operations in the UAE, to a region which offers a significant
fleet of jackup drilling rigs owned by
predominantly the same group of clients that operate in the Middle East. The Group will
commence the enhancement of the facilities shortly
and anticipates executing the first revenue generating project in the fourth quarter of 2008,
with full operations expected to commence in
2009.
Outlook
As at 30 June 2008 the total order book was approximately US$ 890 million and extends well
into 2010. This order book underpins the
Company's expected ongoing revenue growth whilst a significant number of potential contracts
have been identified as likely prospects for
Lamprell across all our business activities. The contracted order book, combined with the
potential projects, gives the Board confidence of
delivering continued growth and further shareholder value in the second half of 2008 and
beyond.
Commenting on the performance Chief Executive Officer, Peter Whitbread, said:
"Lamprell has enjoyed a busy first half year and performance across all key business areas
has continued to be strong. The Company has
embarked on its next phase of organic growth, with the opening of a new rig upgrade facility
in Thailand where we expect to deliver revenues
from the fourth quarter of 2008 onwards.
In addition, we continue to focus on ways of improving our services to customers and our
strategy of operational expansion into
Engineering, Procurement and Construction
contracts, with new build liftboat and jackup construction, is progressing well. On 23
June, we secured our largest ever contract win
worth US$ 204.5 million from BassDrill.
We are delighted with the US$ 29 million further contract award from Saipem S.p.A., which
reinforces our reputation for technical
capability and confirms the benefit enjoyed from strong long term relationships.
The business is currently benefiting from an excellent trading environment and we believe
that this, coupled with our high standards for
quality and execution, means we are well positioned to continue delivering shareholder
value."
-Ends-
Lamprell plc
+44 (0) 207 153 1547
Peter Birch, Chairman
Peter Whitbread, Chief Executive Officer
Scott Doak, Chief Financial Officer
David Moran, Director of Corporate Communications
JPMorgan Cazenove, London +44 (0) 207
588 2828
Malcolm Moir
Nick Garrett
Laurence Hollingworth
M:Communications, London
Patrick d'Ancona
+44 (0) 207 153 1547
Charlotte Kirkham
+44 (0) 207 153 1531
Georgina Briscoe
+44 (0) 207 153 1548
Notes to editors
* Lamprell, based in the UAE, has played an increasingly prominent role in the
development of the offshore industry in the Arabian
Gulf for over 30 years, in later years providing specialised services to the offshore oil and
gas industry.
* Lamprell's three primary facilities are in Port Khalid and Hamriyah Free Zone, in
the Emirate of Sharjah, and in the Jebel Ali
Free Zone, in the Emirate of Dubai, all of which are in the UAE.
* The principal markets in which Lamprell operates, and the principal services it
provides, are:
* Upgrade and refurbishment of offshore jackup rigs;
* Engineering, procurement and construction of jackup rigs, liftboats and drilling
related equipment;
* New build construction for the offshore oil and gas sector, including Floating
Production, Storage and Offloading systems and
other offshore and onshore structures; and
* Oilfield engineering services, including the upgrade, refurbishment and new building
of land rigs.
This information is provided by RNS
The company news service from the London Stock Exchange
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