The Lamprell Group has played an important role in the development of the offshore industry in the Arabian Gulf for over 30 years, providing increasingly specialised services to the offshore oil industry. Lamprell is managed by British nationals, with its corporate headquarters in Sharjah, one of the United Arab Emirates, Lamprell operates a full service jackup rig refurbishment facility in Sharjah and a modern, well equipped fabrication facility in Jebel Ali Free Zone, Dubai.

Lamprell located in the most important oil and gas region in the world, in one of the key commercial centres in the UAE.

Lamprell has its own core skilled and experienced workforce as well as access to additional skilled labour from the local labour supply market.


AIM Rule 26 Disclosure

This, in addition to the Group�s safety focused culture and experienced project management skills, helps to ensure customer satisfaction is maximised whilst risks are reduced.

Lamprell has built up its strong market position by offering a differentiated service to its clients based on safe working practices and completing projects on time, on budget and to a high quality. Accordingly, we believe that the Company has established a position of sustainable competitive advantage in the region.

cheeky boy! ..... you don't answer the question

Another 1p up on a strong finish and on a very ugly day in general

mj - it really is a great shame that you do not complete your interesting chart analyses by giving the punch line - i.e. "with a target of ....." ..... it really does rather devalue the whole

and another 2p up, on a bad day for the market

and your target is????????????????
90p? ..... 100p ..... more????

using my "moron's chart/brain", i would hazard that the next resistance is 90p, and if it gets to 100p, then you have done very well indeed - or got very lucky if you want to be cynical :-)

I'm surprised these haven't fallen further this morning.

looks to be a much stronger bid book, so perhaps bears taking profits

MJ - this is one of your stable, albeit that you are of the day/short-term trading clique, so what's your take now?

Now back in auction up 9%!

Bullish engulfing flag with good volume.

very curious ..... ghastly figures and, having been marked down 10% at the open, they are now fizzing ..... 2 obvious possibilities

Why share price is recovering?

easy

cos recovery on the business is on the cards, kitchen sink and old directors out, new ones to fix it in

UPDATE - Lamprell increases loss estimates

Diversified engineering and contracting services provider Lamprell expects a total projected loss of $105m this year.

The company says the loss before interest, tax, depreciation and amortisation will be in the region of $64m.

It says this increased estimate has arisen as a result of additional losses and delays or deferrals on a number of individual project.

But Lamprell expects 2013 to be a recovery year.

It says revenues will be broadly flat compared to this year with a gradual return to profitability.
-------------------------------------------------

Lamprell (ticker: LAM), a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, issues its latest Interim Management Statement in accordance with the EU Transparency Directive, which also provides a trading update in light of the previous announcement on 3 October 2012. The statement covers the period from 1 July 2012 to date.
John Kennedy, Chairman, Lamprell, commented:

"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. 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 outcome of this review vindicates the Board's earlier decision to restructure the management team. In so stating, it is also important to re-affirm that the fundamental, underlying strength of the Lamprell business and its on-going competitive advantage in the marketplace is as strong as it ever has been. The bidding pipeline remains highly active and the Board has full confidence in the new management team, with the assistance of the wider dedicated and capable workforce, to take robust action to see that the performance of this Company fulfils its significant potential."

Key points for the relevant period
-- Completion of review of major projects by external consultants validating the Group's revised financial position
-- Projected losses for the full year 2012 increase significantly, with a gradual return to profitability during 2013
-- Progress made in making new appointments to the Board and strengthening the management team
-- Initial management actions to enhance project control and improve broader risk management -- Discussions continue with lenders to obtain a waiver of certain of its year-end banking covenants and a reset of applicable covenants in Q1 2013

Bank of America Upgrade to Buy TP 140p

Markets Live at Alphaville. Two bulls, one bear.

ft alphaville

After early profit taking is on the move up again

Could the company be for SELL? >>>>>>>>>>>


from the Guardian / Monday 19 November 2012 / Simon Neville

Lamprell has revealed its fifth, and by far its worst, profit warning this year, admitting its full-year losses will be seven times bigger that first feared.

The oil rig maker said it will make a loss of $105m (it previously thought the loss would be $12m) and discussions are ongoing with its lenders to avoid breaking its covenants by the end of the year.

A loss of $25m will be made on its Caspian Sea jack-up project and a windfarm project is way over budget and facing penalties for being late.

Yet despite such doom and gloom, shares in the company are up 10.8p, 15.5%, at 80p, in a perfect example of investors preferring to know the true extent of a company's problems, rather than being left with the uncertainty of vague statements that have been made in the past.

The reason for such a huge increase in the company's expected loss comes courtesy of an independent report from PwC to audit the accounts. The report revealed problems far wilder than the incompetent board managed to unveil.

At the fourth profit warning last month the company's chief executive and two senior managers resigned over the fiasco, while a new chairman (who ordered the PwC review) was appointed in the summer.

So, with fresh eyes and fresh legs due at the helm (the company is being run by former boss Peter Whitbread while a replacement is found), analysts appear content and believe any investor would be crazy not to throw some money Lamprell's way.

Brokers comments after yesterday's update ...........

Merrill Lynch upgraded the company from Sell to Buy

The past 6 months were without doubt the most challenging in Lamprell's recent history. With an in depth review of all projects by PWC now complete, today's IMS delivers the largest profits warning to date. However, importantly this looks to draw a line under the issues faced by the troublesome projects. While the company is not fully out of the woods, we believe today's IMS is a significant milestone.


Liberum Capital

We still believe that Lamprell has a strong underlying business and retains competitive advantages in many of its markets. No new contracts have been announced but the bidding pipeline remains highly active and the order book is still around US$1.4bn which gives visibility to revenues through 2013.

Near term profitability could be poor but a new management team can be expected to improve delivery and take advantage of strong markets. We believe the current share price only reflects value for the jackup refurbishment business and, for investors prepared to look forward to 2014, we still believe Lamprell should offer significant upside.


However, they note the company is under investigation by the Financial Services Authority for insider information violations.


Investec

The new chairman's independent review was always going to "kitchen sink" 2012 and the $100m loss revealed in the IMS confirms this. The problem is that 2013 recovery will be slow, with a loss in 1H13 and potentially only breakeven for FY13.
The banks may play ball over missed covenants and the exit route may ultimately be a trade sale, but there are better recovery stories in the sector.

From the Telegraph late yesterday ...............


Lamprell leaps 17pc despite issuing fifth profit warning

Lamprell issued its fifth profit warning since May, as it said losses would be much greater than previously forecast, but its shares jumped 17.3pc on hopes it had finally turned a corner.

Lamprell makes jack-up rigs, which are floating rigs with retractable legs used to secure the unit on the sea floor.

Lamprell issued its fifth profit warning since May on Monday, as it said losses would be much greater than previously forecast, but its shares jumped 17.3pc on hopes it had finally turned a corner.

The troubled oil-rig maker also said it remained under investigation by the Financial Services Authority (FSA) over its handling of inside information before June 7, the date of its second profits warning.

The group said that a review by external consultants, understood to be PricewaterhouseCoopers, had “revealed a much greater loss for the year than previously announced or anticipated”.

It now expected to make a loss of $105m (£66m) this year, compared with the loss of between $12m and $17m it anticipated in its third warning in July. It had said in October that the loss would be “significantly greater” than the July forecast but had not quantified it.

The company has reported a string of losses, delays and deferrals in individual projects, primarily relating to “slippage” of contracts blamed on worldwide equipment shortages, and delays to the delivery of wind farm vessels.

On Monday it reported additional losses and delays to those projects as well as on previously-unreported items.

Lamprell’s chairman and senior management have been overhauled in recent months.

In June, John Kennedy, chairman, was brought in after the second profits warning and indicated that the board had instigated the ousting of its chief executive, Nigel McCue, in October.

Lamprell’s former chief executive, Peter Whitbread, has returned to the top job temporarily, while Lamprell’s chief financial officer and chief operating officer also stood down as directors in October.

Mr Kennedy said on Monday he was “very disappointed” by the latest profits warning but said: “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.”

He added that the outcome of the external review “vindicates the board’s earlier decision to restructure the management team”. The company now hoped for a “gradual” return to profitability in 2013.

Analyst Andrew Whittock at Liberum Capital said the warning was “disappointing” but that “the share price fails to reflect the underlying value of the business” and noted that the group remained “confident of support from its lenders”.

Analysts at Bank of America Merrill Lynch issued a double-upgrade note to a “buy” recommendation, arguing: “Whilst we cannot be certain of no further warnings, we are much more confident that the most significant problems have been uncovered and accounted for.”

After falling in early trading, the shares climbed 12 to close at 81¼p.

Has reached 85.375p on a steady rise/spike, breaking last Monday 84p intraday high
a bit volatile since the last rise with some retracement.

no obvious reason for this little burst for glory, and volumes are not especially high either