Lamprell plc Pre-close Trading Statement (0002A)
16 Gennaio 2020 - 08:00AM
UK Regulatory
TIDMLAM
RNS Number : 0002A
Lamprell plc
16 January 2020
16 January 2020
LAMPRELL PLC
("Lamprell" and with its subsidiaries the "Group")
PRE-CLOSE TRADING UPDATE
Lamprell announces the following update on its performance for
2019 and an update on its current trading and outlook ahead of
publication of its 2019 financial results on 26 March 2020.
Operational highlights
Year end TRIR for the Group was 0.19; an exemplary safety
outcome given the rapid ramping up of activities in the yards
during the year.
The Moray East project is progressing well, with an excellent
safety performance and within the budget, benefitting from the
incremental investment in yard infrastructure in 2019. We have now
commenced the upending of jackets and anticipate to start
delivering to our client at the quayside in Hamriyah at the end of
Q1, 2020.
Commercial settlement negotiations on the East Anglia One
project continue with ScottishPower Renewables.
Our services businesses, including the rig refurbishment
segment, continue to provide strong revenue flows in a challenging
market for major projects. In 2019 we refurbished 13 rigs.
Financial position and outlook
Subject to audit, we anticipate 2019 revenue to be USD 276
million; at the bottom end of the previously announced guidance
range.
Net cash has reduced to USD 41.5 million primarily as a result
of the EA1 settlement slipping into 2020. Backlog currently stands
at USD 466 million (30 June 2019: 441 million). The bid pipeline
remains in line with 1H 2019, at USD 6.2 billion.
The Company has secured an extension to its debt facility until
April 2020 as we continue to negotiate a new facility, as well as
considering other debt options, for future working capital
requirements.
Further, the Group continues to review its operational footprint
in order to achieve substantial cost reductions and improve
efficiencies whilst maintaining its capacity to deliver major
projects in both the renewables and oil and gas sectors. A number
of self-help measures have been identified for the medium term with
an anticipated reduction in overhead of a minimum of 20% in
2020.
Major project flow in the oil and gas segment continues to be
slow, but we are encouraged by the signs of progress in the region,
which we believe will lead to wider sector recovery. 2020 revenues
are expected to be in the range USD 350-450 million.
Lamprell will announce its full year 2019 financial results on
26 March 2020. Lamprell will hold its annual general meeting on 3
June 2020.
- Ends -
Enquiries:
Lamprell plc
Maria Babkina, Investor Relations +44 (0) 7852 618 046
Tulchan Communications, London +44 (0) 207 353 4200
Martin Robinson
Martin Pengelley
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 around 5,000 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 1.6 km of quayside.
Lamprell is listed on the London Stock Exchange (symbol
"LAM").
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END
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