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Lamprell counts cost of windfarm troubles

Chairman John Malcom said the group experienced significant challenges throughout 2017
offshore wind turbines
Revenue for 2017 amounted to US$370mln

Shares in oil and offshore services group Lamprell Plc (LON:LAM) dropped after it revealed a near halving of revenue and confirmed a loss for 2017.

Revenue for 2017 amounted to US$370mln, from US$705mln in 2016. The United Arab Emirates-based engineering firm reported an EBITDA loss of US$70.5mln, slumping from positive earnings of US$30.6mln in the preceding year.

READ: Downbeat Lamprell looks eighteen months ahead as oil activity stays subdued

At US$98.1mln, the loss from continuing operations (after tax and exceptional items) actually narrowed from the 2016 comparative which stood at US$182.2mln.

Chairman John Malcom acknowledged that the group “experienced significant challenges throughout 2017” whereas chief executive Christopher McDonald described his first full year in charge as one of “repositioning”.

McDonald added that he was disappointed with the group’s performance at the East Anglia One offshore wind project which had a significant impact on the financial results.

“The project involved a steep learning curve and since my arrival we have been implementing steps to transform our processes and increase our rigour in the bidding activities,” McDonald said.

“With this in place, I continue to believe Lamprell is well positioned to be competitive in the future in this strategic sector, one which we believe offers significant long-term potential. 

He added: “Across Lamprell, we have taken concrete actions to adopt the lessons learned and to enhance the business for growth, both in our core rig market, through our investment in Saudi Arabia and the development of a new proprietary jackup rig design, and in new sectors like renewables and EPC where we are investing in additional resources and improved bidding processes to compete successfully in these strategically-important sectors."

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