Lamprell projects to cost firm US$105 million for 2012

Tapti-LamprellOil and gas services provider Lamprell has warned that additional losses and delays or deferrals on a number of projects will see it incur a US$105mn full-year loss for 2012

In an interim management statement covering the period from 1 July 2012 to date, the company said that it is taking various steps to mitigate the potential losses.

"Over the last month or so, the company has worked closely with external consultants to assess more accurately the potential impact of the underperforming projects on the company's financial performance," said Lamprell chairman John Kennedy. 

"This review has revealed a much greater loss for the year than previously announced or anticipated and naturally I am very disappointed. However, having now identified the issues and their potential financial impact, the group is in a much better position to draw a line under these events and to take appropriate steps to mitigate or address the issues. The group also is keen to focus on new projects which are more aligned with its core competencies,” 

The statement added that in the short-to-medium term, the group's order book of secured contracts is expected to support the recovery of the business through to the end of 2013.

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