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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Young Taken on PESA Advisory Board

Hoover Container Solutions’ chairman and CEO, Donald Young, has been nominated and elected to the Petroleum Equipment & Services Association (PESA) Advisory Board for a three-year term.

US Navy Tests Latest Aegis Weapon System

The U.S. Navy conducted a series of cooperative air defense test exercises with the Spanish navy that culminated in live missile firing events using the latest Aegis Weapon System baseline July 20-21.

Antwerp Port CEO Scoops Baron Title

After 25 years as CEO of Antwerp Port Authority, Eddy Bruyninckx has been raised to the nobility by H.M. the king of Belgium with the rank of baron. In Belgium

Shipbuilding

Navig8 Acquires Chemical Tanker from STX

Navig8 Chemical Tankers Inc (the “Company”) (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced that it

Damen ASD Tug for Mexico

Damen congratulates Reylaver on the safe arrival and naming ceremony of the new ASD Tug 2411 Jesus. In order to reach her owners, the vessel undertook, on her own keel,

Hyundai Bags NZ Defence Order

Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, has won an order to build a 23,000 ton class logistics support vessel for New Zealand Defence

Finance

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

As Market Sours, LPG Tankers Anchor off Singapore

Record U.S. LPG exports to Asia flip market into a glut. Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical makers.

China sets up South China Sea environment protection fund

China has set up a 15 million yuan ($2.25 million) environmental protection fund for the South China Sea having already spent double that in the past four years,

Energy

Los Angeles Pushes for Valero Terminal Improvements

The Port of Los Angeles has released an Initial Study/Notice of Preparation (IS/NOP) — the first step in the Environmental Impact Report (EIR) process — for a Marine

Canada Seek to contain Oil Spill

Authorities are building a new containment boom to fight an oil spill in a major western Canadian river, officials said on Saturday, after the spill breached a

Ecuador Pays $112 mln Award to Chevron

Ecuador has paid $112 million to energy company Chevron Corp over a four-decade-old contract dispute, even though it remains in disagreement, the head of the central bank has said.

News

MSC Invests in TRAXENS Container Monitoring

MSC Mediterranean Shipping Company has reached an agreement to back French start-up TRAXENS, a developer of cargo logistics solutions and creator of a container monitoring and coordination system.

Passenger Vessel Runs Aground off Hawaii

The 65-foot commercial passenger vessel Spirit of Kona ran aground on the island of Hawaii, Sunday, the U.S. Coast Guard reported.   Coast Guard Sector Honolulu

Baltic Index Falls on Weak Freight Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Monday due to weaker rates across all segments, except handysizes.

Offshore Energy

Eni Cancels Vessel Deal with Viking Supply Ships

Viking Supply Ships A/S (VSS) has received an early termination notice of the contract for the Ice-class 1A AHTS “Njord Viking”. The vessel has been working for

MOL Signs Long-Term Charter with Uruguayan JV for FSRU

Japanese shipping company Mitsui O.S.K. Lines, has, through its wholly-owned subsidiary Lakler S.A., agreed to conclude a charter contract with Gas Sayago, for

Ithaca’s FPF-1 platform to be moved to Stella field

Ithaca Energy Inc. reports that the "FPF-1" floating production facility has completed the required inclination test as planned and departed the Remontowa shipyard in Gdansk, Poland.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.1689 sec (6 req/sec)