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Against the backdrop of difficult energy markets worldwide, the UAE-based Lamprell Group says it was pleased with its overall performance in 2018, which ended with two significant contract wins. One was a US$ 200 plus million contract award from GeoSea Procurement & Shipping for the fabrication of 48 foundations for the Moray East wind farm. Lamprell also secured a Letter of Intent from its new Saudi Shipyard joint venture, IMI, to construct two jackup drilling units for use in Saudi Arabia.
Lamprell’s position in Saudi Arabia, a key growth market, was further strengthened by joining Saudi Aramco’s LTA programme. “Although this has not translated into an order backlog at this stage, the programme is key to our growth and recovery and we anticipate the first opportunities to materialise in 2019 and beyond,” says Christopher McDonald, chief executive officer.
Lamprell also reports that the rig refurbishment sector continued to deliver strong results despite a challenging market. In 2018 the company completed the refurbishment of a record 23 jackup rigs, compared to 13 refurbishment projects completed the previous year.
In a statement to the market this month, Lamprell said its balance sheet continues to be solid, underpinned by very low debt and leverage, and a broad asset base. It expects revenues for 2018 to be consistent with previous guidance at around US$ 235 million.
For 2019 revenues are expected to increase further to between US$ 250-400 million. McDonald said: “Despite the challenges of the market environment in 2018, we have delivered against the objectives that we set out earlier in the year. Given the ongoing uncertainty in the industry, this reconfirms our confidence that Lamprell’s strategy will deliver growth for the business from 2019 onwards.”
Lamprell, which will announce its full year 2018 financial results on 21st March 2019, currently employs more than 3000 people across various sites, with its main facilities being in Hamriyah, Sharjah and Jebel Ali, all in the UAE. In addition, the company has facilities in Saudi Arabia through the IMI joint venture. Combined, the group’s facilities cover approximately 812,000 m2 with 1.6 km of quayside.
