UAE-based Lamprell, specialist in rigs construction and a leading provider of diversified engineering and contracting services, has reported its revenues were up by $125.7 million in H1 2014 against H1 2013 as a result of high activity levels and phasing of construction activity during the period.
“Results were ahead of expectations due to strong operational performance and early results from savings initiatives generating improved margins,” the company said, adding that a successful rights issue and refinancing provided a strong financial platform and enabled delivery of a long-term growth strategy.
But it cautioned that while revenue expectations for full-year 2014 were unchanged, lower revenue levels were expected in H2 2014 compared to H1 2014 due to the timing of build cycles and reduced activity in the onshore and offshore construction market.
It also projected that revenue for full-year 2015 would be broadly flat on the previous year with significantly fewer major project completions in FY 2015. The company is seeking further reductions in overheads.
Among the operational highlights of H1 2014 it listed was a strong performance in all core markets, enhancing Lamprell’s track record for project execution. Two jackup rigs were successfully delivered to National Drilling Company – the 13,200 tonne production utilities and quarters deck to Nexen for use in the North Sea sector and a new self-propelled jackup vessel to Seajacks. The largest and one of the most complex rig conversion and refurbishment projects in Lamprell’s history was delivered to a client after the period end.
In other highlights, over $900 million of new awards were received since January 2014 including multi-rig awards from each of Ensco and Shelf Drilling, as well as an award from Petrofac for modules to be deployed in Abu Dhabi. As at June 30, 2014, there was a backlog of $1.2 billion ( December 31, 2013: $0.9 billion) with the bid pipeline increasing to approximately $4.9 billion ( December 31, 2013:
$ 4.7 billion).
Lamprell said five new build jackup drilling rigs are to be delivered between November 2014 and March 2015. The order book has been rebuilt and is now extending out to Q2 2017.
