Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

Lamprell plc (LAM)

  Print      Mail a friend       Annual reports

Wednesday 24 January, 2018

Lamprell plc

Pre-close Trading Statement

RNS Number : 8399C
Lamprell plc
24 January 2018



24 January 2018



("Lamprell" and with its subsidiaries the "Group")





Lamprell announces the following update on its performance for 2017 and an update on the East Anglia One offshore windfarm project (EA1 Project). As previously announced, the issues on the EA1 Project will significantly impact the Group's profitability in 2017, with total losses on the EA1 Project to completion estimated to be approximately US$80 million, which will be booked in full in 2017.  The additional costs on the project have been caused by a number of variable factors including investment in further, unplanned staffing and equipment requirements, as well as significant additional shipping and subcontractor costs.  This forecast loss on the project does not include any potential liquidated damages.  We remain in constructive discussions with our client and are confident of meeting their expectations around the delivery schedule requirements.


EA1 Project update


Operationally, we are making good progress on the EA1 Project.  The first shipment of part-assembled jackets is well on its way to Belfast for final assembly by Harland & Wolff.  The first shipment of 8 fully-assembled jackets has been loaded out from our Jebel Ali facility and the vessel will set sail for the client's facility at Vlissingen in the Netherlands shortly.  The final load of piles is also in the process of being transported to Vlissingen in accordance with the project schedule. 


While the EA1 Project has been challenging, subject to the losses, we are going to significant lengths to deliver a successful outcome for our client on the project.  In order to rectify the challenges on the EA1 Project, we have strengthened our capabilities in certain key areas including bidding, risk and change management.  This has resulted in some personnel changes to improve our competency in these areas.


Financial position and outlook


Revenue for 2017 is expected to be at the lower end of the guidance range of US$370-390 million. The Company has maintained its strong balance sheet and expects to have a year-end net cash position of around US$255 million, subject to audit, which is after taking account of approximately US$50 million of negative cash flow from the EA1 Project in 2017.  This puts Lamprell in a strong position to weather ongoing market challenges and to invest in its strategic initiative in Saudi Arabia. The net cash position is planned to trend downwards during the course of 2018 as a result of the investment in the Saudi Maritime Yard, payment for inventory and the cash impact of the remaining losses on the EA1 Project which are expected to total US$30 million.


The magnitude of the approximate loss on the EA1 Project is likely to cause the Company to breach the Tangible Net Worth financial covenant contained within its debt facilities.  Due to the strength of the Company's balance sheet, this breach does not impact the Company's short term liquidity but the Company will seek a waiver from its banking syndicate to retain its undrawn working capital facilities, to enable it to take advantage of future growth opportunities that may arise.


Given the expected low activity levels later this year, Lamprell remains heavily focussed on converting our bid pipeline and rebuilding our order book.  Bidding activity levels are positive in our key markets and we aim to leverage our client relationships and strengthen our competitive position in order to rebuild our backlog, although we do not expect to see revenue growth until 2019 on the basis of awards no earlier than late 2018. As a result, we maintain our previous guidance for 2018 revenues and expect trading to be significantly impacted by the lower activity levels and the fact that the 2018 revenues on the EA1 Project (which comprise approximately 25% of our 2018 projected revenues) will be at zero margin.  In addition to increased bidding costs, we also plan to maintain our overheads at existing levels in order for the Group to retain its core competitive strengths and continue to upskill its workforce in order to be able to deliver our strategy.  Our focus is on developing our presence in Saudi Arabia and in the renewables sector whilst also being ready for the recovery in oil-related markets.


Other projects


The refurbishment project for Master Marine is progressing well following the departure of the vessel carrying the fabricated products from Lamprell's Hamriyah facility on 23 December.  The vessel is heading to Norway for final installation of the products on to the 'Haven' rig at our subcontractor's yard and for completion in Q2 2018, as planned.  Construction of the two land rigs for Schlumberger has also been completed and the client is expected to take delivery shortly in anticipation of deployment later this year.


The Group has experienced an increase in the number of other rig refurbishment projects towards the end of last year, with 13 such projects completed in 2017, 4 under way currently and 14 jackup rigs stacked at Lamprell's facilities.  Although the scope of work on these projects is typically smaller than in previous years, we view this activity as a positive early indication of a broader rig market recovery.


Maritime Yard


During 2017, the Group signed a transformational joint venture agreement with Saudi Aramco, Bahri and Hyundai Heavy Industries (HHI) for a major maritime yard development in Saudi Arabia (Maritime Yard). The Maritime Yard continues to progress positively and to schedule and the newly-formed joint venture company has been named "International Maritime Industries" (or IMI) following the initial board meeting.  We will continue to update the market as regards the progress of this project as appropriate.



Christopher McDonald, Chief Executive Officer said:

"We anticipated a challenging 2017 given the weakness of our end markets, and this was compounded by the significant issues we have experienced on the EA1 Project. This is a disappointing outcome for the Company.  We have taken the lessons from that project and the Group's financial position remains robust.


"We expect the market to remain challenging in 2018. However, the increased activity in our bid pipeline and the progress with the Maritime Yard in Saudi Arabia provide us with optimism and a path to support long-term, sustainable growth."



Lamprell will announce its full year 2017 financial results on 22 March 2018.


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.


- Ends -





Lamprell plc


Maria Babkina, Investor Relations

+44 (0) 7852 618 046


Tulchan Communications, London

+44 (0) 207 353 4200

Martin Robinson

Martin Pengelley


Legal Entity Identifier of the Company: 2138008NUMXRMIEDF538

Classification: Additional regulated information required to be disclosed under the laws of a Member State




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 7,000 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 1.9 km of quayside.


Lamprell is listed on the London Stock Exchange (symbol "LAM").

This information is provided by RNS
The company news service from the London Stock Exchange

a d v e r t i s e m e n t