Lamprell losses lessen in 2018 but financial woes persist

Lamprell news
Lamprell news

United Arab Emirates firm Lamprell has seen a lessening of losses in 2018, but the firm’s financial woes persist.

The firm experienced losses of £53 million last year, an improvement on £73m on the previous year.

However, revenue for the year was £177m, down from £280m in 2017.

In December, Dubai-headquartered Lamprell was commissioned to complete the construction of the £160 million Moray East offshore windfarm.

The deal – for 45 wind turbine jackets – was awarded by GeoSea, a marine contractor appointed by Moray East.

Lamprell, whose shares have plummeted more than 40% since June, also had a £400m order backlog at the end of last year.

Christopher McDonald, chief executive for Lamprell, said: “I am pleased to report that the business repositioning we have been working on over the past two years is finally beginning to translate into tangible growth opportunities for Lamprell.

“Having completed the UAE scope on our two major projects in the first half of 2018, our yard activity levels hit a historic low, however by the end of the year we had achieved three major strategic milestones, which made a significant improvement to both our backlog and bid pipeline.”

Lamprell experienced financial difficulty as a consequence of it involvement in ScottishPower’s East Anglia One offshore windfarm, which was over-run and over budget and contributed to losses of £38m at Lamprell in 2017.

Lamprell incurred “unanticipated costs”, such as additional labour.

Mr McDonald added: “Our IMI joint venture has provided us with an LOI for two new build jackup rig orders, the first order globally since 2015.

“Our investment in new talent since 2017 has helped secure a place on Saudi Aramco’s LTA programme and our challenging experience with East Anglia One has ensured we were able to win a new project in the renewables industry with confidence over its commercial viability.

“Although our current revenue levels will continue to affect profitability in the near term, I strongly believe in the growth prospects for our business”

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