Lamprell plc Interim Management Statement (9506E)
May 17 2013 - 1:00AM
UK Regulatory
TIDMLAM
RNS Number : 9506E
Lamprell plc
17 May 2013
17 May 2013
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
INTERIM MANAGEMENT STATEMENT
Lamprell (ticker: LAM), a leading provider of diversified
engineering and contracting services to the onshore and offshore
oil & gas and renewable energy industries, issues its latest
Interim Management Statement in accordance with the EU Transparency
Directive. This statement covers the period from 1 January 2013 to
date, except as stated below.
The performance in the year to date has been in line with
management expectations and, after the events of the previous year,
we have made an encouraging start to 2013.
Financial
Overall, the Group's financial position remains stable and
working capital continues to be in a healthy position. The Group's
immediate priority is to complete its discussions with its key
lending banks in order to restructure its debt facilities and agree
revised covenants on a long term basis. These discussions are now
in an advanced stage and the Company remains on track to complete
the process by 30 June 2013. We will update the market in due
course.
Operational update
From an operating perspective, Lamprell is focussing on its core
competencies and on maintaining high standards of safety and
quality. The various major engineering, procurement and
construction projects currently under way in each of Lamprell's
three large facilities in Hamriyah, Sharjah and Jebel Ali (all in
the United Arab Emirates) are progressing according to plan.
Lamprell has a pre-eminent position and well-established track
record in rig refurbishment projects in the Middle East. In the
year to date, the Company has worked on a total of 11 jackup rigs,
two of them in our Hamriyah facility and nine in our Sharjah
facility, covering the full range of its repair, upgrade and
refurbishment services.
In February 2013, a new contract was awarded to Lamprell by the
Jindal group, a key existing customer for the Group, for the
construction and delivery of a LeTourneau designed, self-elevating
Mobile Offshore Drilling Platform of a Super 116E (Enhanced) Class
design. The contract also includes an option for Jindal to order a
second jackup rig.
Also in February 2013, Lamprell successfully delivered the wind
turbine installation vessel, Windcarrier 2 "Bold Tern" to the
client, Fred Olsen.
Our safety statistics for the year to date continue to show
improvements on those for 2012. The Group will strive to build on
those improvements throughout the rest of 2013 and will provide
details at the time of announcement of the 1H financial
statements.
Corporate
There have been key changes to the management team with James
Moffat joining as the new Chief Executive Officer (CEO) on 1 March
2013 and with Frank Nelson being confirmed as Chief Financial
Officer in late March. Mr Moffat and Mr Nelson have both been
appointed as executive directors on the Board. Peter Whitbread (the
former interim CEO) continues on the Board in an executive role.
The Group has also recruited Niall O'Connell as the new VP Projects
in order to strengthen the Group's project management
structure.
The Board has progressed well with the recent appointments of
Michael Press, John Malcolm and Ellis Armstrong as new independent
Non-executive Directors effective as from 27 May 2013. As announced
previously, Deena Mattar, Colin Goodall and Jonathan Silver have
decided to retire from the Board of the Company effective from the
end of the upcoming Annual General Meeting.
In late March, the Company confirmed that it had concluded a
settlement with the Financial Services Authority ("FSA") in
relation to the FSA's investigation into the Company's handling of
inside information, as previously announced. The Company made
provision for the settlement in the 2012 accounts.
Outlook
The Group maintains a substantial order book extending to Q1
2015 which at the end of April 2013 was US$1.2 billion. The Group's
bid pipeline at the end of April was in the order of US$4 billion,
which is viewed positively against the backdrop of a robust
industry landscape.
In light of the above, the Board believes that the Company is
well placed to achieve its primary goal of refocusing on Lamprell's
core business and accordingly the Board reiterates its earlier
guidance for 2013. In the longer term, this will enable the Group
to develop its competitive advantage which historically has been
founded on high quality of workmanship and timely execution for
those types of projects.
- Ends -
Enquiries:
Lamprell plc
John Kennedy, Chairman +44 (0) 207 920 2347
Jim Moffat, Chief Executive
Officer +971 (0) 4 803 9308
Frank Nelson, Chief Financial
Officer +971 (0) 4 803 9227
Ekaterina Alferova, Investor
Relations +44 (0) 7570 813428
M:Communications, London
Ann-Marie Wilkinson +44 (0) 207 920 2347
Andrew Benbow +44 (0) 207 920 2344
Cautionary Statement
This announcement contains certain forward-looking statements
with respect to the financial condition and operational results of
Lamprell plc. These statements and forecasts involve risk,
uncertainty and assumptions because they relate to events and
depend upon circumstances that will occur in the future. There are
a number of factors that could cause actual results or developments
to differ materially from those expressed or implied by these
forward-looking statements. These forward-looking statements are
made only as at the date of this announcement. Nothing in this
announcement should be construed as a profit forecast. Except as
required by law, Lamprell plc has no obligation to update the
forward-looking statements or to correct any inaccuracies
therein.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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