Lamprell First Half Results Beat Expectations

By Eric Haun
Thursday, August 28, 2014
Muhaiyimat project for National Drilling Company (Photo: Lamprell)

Lamprell today announced its financial results for the first half of 2014, reporting results ahead of expectations due to strong operational performance and early results from savings initiatives, generating improved margins.

Revenues rose by $125.7 million against H1 2013 as a result of the high H1 activity levels and phasing of construction activity during the period. According to Lamprell, successful rights issue and refinancing provides a strong financial platform and enables delivery of long-term growth strategy.

James Moffat, Chief Executive Officer for Lamprell, said, “Our continued focus on operational excellence has resulted in a strong first half performance that has exceeded our expectations. At the same time our safety track record has been world class. In 2014, we are delighted to have rebuilt our order book, winning significant awards from both new and existing customers. We are making good progress implementing our refreshed growth strategy based on our core markets and are already beginning to see the benefits of a stronger balance sheet. While we anticipate lower revenues in the second half of the year, we expect the outturn for the full year to be ahead of our expectations.”

John Kennedy, Nonexecutive Chairman for Lamprell, said, “Lamprell has achieved a great deal in the first half of 2014. We have delivered a strong operational and financial performance, made good progress in converting our pipeline and successfully completed a rights issue and a major debt refinancing. The business is now well-positioned to deliver on its refreshed growth strategy and to create long-term value for all stakeholders.”

Lamprell’s operational highlights

  • Strong operational performance in all core markets enhances Lamprell’s track record for project execution
  • Successful delivery of two jackup rigs to National Drilling Company, the 13,200-metric-ton production utilities and quarters deck to Nexen for use in North Sea sector and a new self-propelled jackup vessel to Seajacks
  • Largest and one of the most complex rig conversion and refurbishment projects in Lamprell’s history delivered to the client after the period end
  • Over $900 million of new awards 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 of June 30, 2014, backlog of $1.2 billion (December 31, 2013: $0.9 billion) with bid pipeline increasing to approximately $4.9 billion (December 31, 2013: $4.7 billion)
  • World class safety record continues on various projects including ten million man-hours without a lost-time incident on Nexen project
  • Project Evolution, a program to deliver material productivity improvements and cost efficiencies, is progressing well and generating some early returns


Lamprell’s current trading and outlook

  • Five newbuild jackup drilling rigs to be delivered between November 2014 and March 2015
  • Order book rebuilt and now extending out to Q2 2017
  • Continued strong demand for our core markets as demonstrated by increased bid pipeline
  • All ongoing major projects progressing well
  • Revenue expectations for FY 2014 unchanged; lower revenue levels expected in H2 2014 compared to H1 2014 due to timing of build cycles and reduced activity in onshore and offshore construction market
  • Full year outturn anticipated to be ahead of expectations predominantly due to projected continuing strong operational performance and initial savings from procurement activities
  • As previously announced, revenue for FY2015 expected to be broadly flat on FY2014 with significantly fewer major project completions in FY2015
  • Drive to target further reductions in overheads


lamprell.com
 

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

UNOLS Seeks Fleet Improvement Committee Chair

The University-National Oceanographic Laboratory System (UNOLS) informs it is seeking nominations to fill a Fleet Improvement Committee (FIC) Chair position.   The position,

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Shipbuilding

CAT’s New Dual Fuel Engine M 4G DF

At the beginning of 2015 the exhaust limit values for sulfur oxides (SOx) grew ever tighter in emission controlled areas. And with the start of 2016, nitrogen oxides

Bordelon Takes Delivery of the Shelia Bordelon

Bordelon Marine has taken delivery of the M/V Shelia Bordelon, its next Stingray 260 DP2, Ultra-Light Intervention Vessel (ULIV).   This highly specialized vessel

Natural Gas Articulated Conduit System Patented

Elliott Bay Design Group (EBDG) announced that long-time partner Moran Towing Corporation has been granted US Patent 8,967,174 for "Articulated conduit systems

Finance

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Rising from the Ashes

The federal government is now taking steps to reverse its 2010 decision to terminate the nation’s LORAN program. The LORAN program was initiated during World War II,

Training: Cutting Costs While Remaining Cutting Edge

Businesses are operating in tough economic times, with budgets being significantly cut during the current industry downturn. Unfortunately, when lowering costs is a key priority,

Energy

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Kongsberg Technology for Johan Sverdrup Field

Kongsberg Maritime has been awarded a call-off order for delivery of the Safety and Automation System (SAS), Life Cycle Simulator and SAS Information Management

Second Sea Lion Rescued from California Oil Spill Dies at SeaWorld

A second sea lion rescued from along California's oil-fouled coastline near Santa Barbara has died at SeaWorld San Diego, where veterinarians are still caring for

News

Stena Sonangol Suezmax Pool Rings in 10 Years

Stena Sonangol Suezmax Pool celebrates 10 years of collaboration and trading.   The 10th anniversary celebrations took place in London on May 20. Today on May 26 it is Houston’s turn and,

UNOLS Seeks Fleet Improvement Committee Chair

The University-National Oceanographic Laboratory System (UNOLS) informs it is seeking nominations to fill a Fleet Improvement Committee (FIC) Chair position.   The position,

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Offshore Energy

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

Kongsberg Technology for Johan Sverdrup Field

Kongsberg Maritime has been awarded a call-off order for delivery of the Safety and Automation System (SAS), Life Cycle Simulator and SAS Information Management

Editorial: Across the Seas & Around the World

Norwegians are seafarers, with maritime and offshore oil and gas tightly woven into the DNA of this population of more than five million. On the eve of Norshipping 2015,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.4386 sec (2 req/sec)