Lamprell plc Trading Update (9928U)
July 18 2018 - 1:00AM
UK Regulatory
TIDMLAM
RNS Number : 9928U
Lamprell plc
18 July 2018
18 July 2018
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
TRADING UPDATE
Lamprell announces the following update on its performance in
the year to date.
Operational update
We have made good progress on the East Anglia One offshore
windfarm project (EA1 Project) with costs trending within our
previous guidance. Earlier this week the last remaining
fully-assembled jackets were loaded out from our yards in the
United Arab Emirates and are currently on vessels being transported
to the ScottishPower's marshalling facility. This completes
shipments to ScottishPower from Lamprell's yards in the UAE.
Meanwhile, our subcontractor in Belfast continues to progress
assembly of the part-fabricated jackets which are scheduled to be
delivered later this year.
Our other projects have been proceeding as planned. In April, we
successfully completed the major upgrade to the mobile operating
unit Haven and delivered it to our client, Master Marine, on time
and on budget.
We have also recently completed a minor project for fabrication
of mud systems for use by a key client on their land rigs.
We continue to see a steady flow of smaller rig refurbishment
projects through our yards, having completed a total of 16 such
projects in the year to date with a further six ongoing currently.
We view this as indicative of a positive trend for the jackup rig
market in the Middle East region as clients look to de-stack their
rigs and renovate them prior to redeployment.
As per the Company's recent announcement, the development of our
local capabilities and presence in Saudi Arabia remain a key focus
for management. The IMI yard project is making progress towards
construction phase and we will provide a more detailed update at
the time of our half-year results.
Financial position and outlook
We maintain our previous guidance range for revenue projections
in 2018. There have been good levels of walk-in work which has
resulted in 95% coverage for the bottom of the US$225-300 million
range. Therefore we expect to deliver an outturn for the year
in-line with this guidance, although results for 2018 will be
significantly weighted to the first half of the year due to the
scheduling of current projects and timing of new awards.
Our financial position remains solid, supported by the Company's
robust balance sheet, and we expect to have a net cash position in
the region of US$165 million at the end of the half-year period,
subject to audit. In line with our guidance, the cash position has
trended downwards since the start of the year. This is as a result
of the expected working capital draw by our projects and the
planned inventory investment during the period. Net cash will
continue to trend moderately downwards during the second half of
2018 as a result of the anticipated capital investment in the IMI
yard for this year, the final payment for inventory as well as
lower activity levels.
Although the market environment remains highly competitive,
tendering activity has increased significantly during the period as
we are currently bidding a number of major opportunities in both of
our targeted end markets of oil & gas and renewables, and we
are actively engaged in discussions with different potential
clients for new projects in our key markets. Our investment in new
people with extensive experience and skills has supported our
ability to access new potential customers in those markets. While
this is indicative of an improved outlook for the energy industry,
we continue to not expect revenue growth until 2019.
Christopher McDonald, Chief Executive Officer said:
"I am pleased with the way that we have been confronting and
addressing the challenges of 2018. We are heavily focused on
rebuilding the backlog and delivering a successful outcome for our
client on the East Anglia One project. With the good bidding
activity levels and our ability to nurture key relationships with
our partners, I remain confident that Lamprell is well positioned
for growth as the wider energy market recovers."
Lamprell will announce its 2018 interim financial results on 20
September 2018.
- Ends -
Enquiries:
Lamprell plc
Maria Babkina, Investor Relations +44 (0) 7852 618 046
Tulchan Communications, London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
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 4,000 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 1.6 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol
"LAM").
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTGXGDRIDBBGII
(END) Dow Jones Newswires
July 18, 2018 02:00 ET (06:00 GMT)
Lamprell (LSE:LAM)
Historical Stock Chart
From Apr 2024 to May 2024
Lamprell (LSE:LAM)
Historical Stock Chart
From May 2023 to May 2024