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Lamprell shares dive on FY core loss, revenue outlook cut

Industry

Rig-maker Lamprell Plc posted a full-year core loss compared with earnings last year, hurt by losses in its offshore wind farm project in the North Sea

The company's were down 4.3 per cent to 67.35 pence at 0830 GMT.

The company, which runs three rig-building yards in the UAE, now expects revenue for 2018 to be between US$225mn to US$300mn lower than the 10 per cent drop from 2017 that it forecast in September.

Lamprell also said that it expects major project awards to be pushed to late 2018, resulting in revenue growth from next year. It expects its cash position for 2018 to drop due to its investments in a maritime yard in Saudi Arabia among other projects.

Oil producers have slashed spending in response to oil prices which are nearly 60 per cent lower than levels seen in 2008, hurting oilfield services companies like Lamprell.

The company warned late last year that it would book a loss related to the East Anglia One project due to cost overruns and that additional costs would hurt its full-year EBITDA.

"2017 was my first full year as CEO and it has been a year of repositioning for Lamprell. It has also been dominated by the losses on the East Anglia One project where I am disappointed with our performance," CEO Christopher McDonald said.

Lamprell reported a loss of US$70.5mn for the year ended 31 December 2017, compared with EBITDA of US$30.6mn last year. Revenue fell 47.5 per cent to US$370.4mn.

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