Shares in oil and gas contractor Lamprell (LON:LAM) sank today more than 20 per cent after the company further downgraded profit expectations for 2012.
In a statement issued after market close yesterday, Lamprell said it had revised guidance issued last month after further analysis.
It still expects 2012 revenues will be around US$1,100 million but cut its net margin expectation to 2.5 per cent from 3.5 per cent.
In the last statement on May 16, the company cited delays to component deliveries and unexpected costs as to blame.
Separately, yesterday, the company announced that chairman Jonathan Silver would become deputy chairman and its external search for a new chairman was "advanced".
In a note today, broker Liberum Capital said: "Lamprell has further downgraded expectations for this year with its second warning over the impact of costs on its construction projects.
"With no apparent impact on expectations for 2013, the shares still appear good value on standard metrics and we retain our Buy recommendation. However, as we noted on 17 May, management will have to re-build confidence in delivery and other issues before the shares are likely to perform."
Oriel Securities, meanwhile, said: "We note that the shares are likely to underperform today, however, we highlight that the share price should be underpinned at 85 p/sh and we retain our 'hold' recommendation, pending clarity on the resolution of supply issues and evidence that appropriate controls will be implemented."
As at 1.43pm, Lamprell shares stood down 21.34 per cent, at 85.50 pence each.