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.

Investec Buy 131.50 165.00 165.00 Retains

JP Morgan Cazenove Overweight 131.50 156.00 156.00 Reiterates

Nomura Buy 131.50 200.00 200.00 Reiterates

Questor share tip: Avoid Oil services until prices fully recover
By John Ficenec, Questor Editor - 3:32PM BST 10 Oct 2015

A short lived oil rally is no reason to buy bombed out oil services stocks on the cheap, says Questor

Oil services
Questor says AVOID
IT IS 40 years since the first North Sea oil reached the shores of Scotland. Since then the UK oil services and engineering industry has flourished creating thousands of jobs and steady returns for investors. Shares across the sector have soared during the past two weeks as the oil price staged a recovery, but we would be wary of joining the party as many challenges remain.

Oil price slump
When oil was above $100 per barrel at the start of last year, the oil majors were spending billions on the exploration and development of existing oil fields.

Technological advancements also unlocked shale deposits in the US, creating a whole new boom of drilling and spending.
Fast forward 18 months and the oil services sector is facing a nuclear winter. Spending plans by the oil majors have been slashed and, with the oil price having plunged to about $50 per barrel, US shale is being pushed to the brink.

Lumpy revenues
The worst may still be ahead for the sector because revenue streams are dependent on other firms spending.
Projects to build oil rigs or maintain existing facilities can be delayed or cancelled when the oil price falls. A reduced budget on a project can greatly impact profits. As a result, the rate at which cash comes into an oil services businesses can be very lumpy and the full impact from falling oil prices could still lie in the future.

Buying the rally?
Analysts at broker Investec feel that industrial valve and pump maker Weir is facing tough times ahead.
Weir was downgraded to a sell with a price target of £11.20 as it grapples with a slowdown in both the oil and gas, and mining industries.
Weir Services replace runner in Peace Canyon hydro power plant in British Columbia, Canada

The Weir Group is no longer a FTSE 100 company
In the last five years, engineers Wood Group and Amec Foster Wheeler both completed big deals that increased exposure to US shale gas. Amec paid £1.9bn for Foster Wheeler last year and Wood Group bought PSN in 2010.
We downgraded Amec to a sell (972½p, March 24) and although the shares may look attractive trading on 10 times forecast earnings, that recommendation remains. Wood Group has been on a tear, gaining 20pc last week. However, the shares, trading on 12 times forecast earnings, are at risk, and we wouldn’t be looking to take part in this rally.

The smaller players Petrofac and Lamprell have both joined in the rally with their shares rising sharply. However, according to investment bank Goldman Sachs little has changed in the fundamental outlook for the oil market, with weak demand and oversupply pushing down prices.

Patience is key
Investors should base any decision on results rather than hope, and would be advised to wait for audited full-year numbers. Only then can a sensible investment decision be made, as this relief rally may prove short lived.

the following adds fuel to the fire of concern across the world .......

firstly, BP foresees depressed crude prices into 2017

now read the following ....
http://www.offshoreenergytoday.com/fred-olsen-breaks-off-bollsta-dolphin-construction-contract/
i am glad i no longer hold LAM

StockMarketWire.com
Lamprell, a leading provider of fabrication, engineering and contracting services to the energy industry, has reported that it continues to deliver strong operational performance across all of its facilities.

It says all current projects are progressing well and Lamprell's yards are seeing high levels of activity. In the last few weeks the company completed the load out of the first pipe racks for the UZ750 project, which will be installed in Abu Dhabi, with other phased deliveries to be made in the coming months.

It has announced that it remains on track to deliver 2015 results in line with previous guidance.

James Moffat, chief executive officer, Lamprell, said: "While Lamprell isn't immune to on-going headwinds in the oil & gas markets, we are pleased to see that our early implementation of the efficiency measures under Project Evolution has positioned the Group to be competitive, which will be key for our future success.

"These actions have allowed us to retain and even build our project workforce, improve our efficiency levels to maintain operational performance, and remain commercially competitive in an environment of increased pricing pressure. From this position of relative strength, we remain positive about Lamprell's longer term prospects as the pipeline is strong with a firm focus on conversion."

JP Morgan Cazenove today reaffirms its overweight investment rating on Lamprell PLC (LON:LAM) and cut its price target to 131p (from 156p).

typical analysts ...... raise to o'weight but cut target price by 16%!

StockMarketWire.com
Lamprell subsidiary Lamprell Energy Limited has signed a memorandum of understanding with Saudi Aramco (the national oil company of Saudi Arabia), the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries in connection with a potential partnership collaboration on establishing a maritime complex in Saudi Arabia. The intended complex will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels. The MOU, which was signed yesterday, covers joint participation and due diligence on all activities and work streams required to make a Final Investment Decision by all participating parties.

StockMarketWire.com
Lamprell maintained margins in 2015 despite a challenging environment and posts results in line with expectations.

Profit of USD66.5 million (2014: USD93.2m) was ahead of market expectations on the back of strong operational performance and contribution from efficiency and productivity measures but revenues of USD871.1 million (2014: USD1,084.9m), were slightly below earlier guidance due to the impact of the market downturn.

EBITDA margin down from the exceptional level of 12.6% in 2014 to a more normalised level of 10.3%, with pricing pressure partly offset by positive impact of higher productivity and cost efficiencies.

Executive chairman John Kennedy said: "2015 was a challenging year for the global energy industry and Lamprell began the year in a position of relative strength, with a high level of backlog and a strengthened balance sheet, which allowed the Group to deliver a robust performance.

"Although we have been affected by the slow-down in new awards worldwide as companies have delayed project sanctions, Lamprell has shown resilience and has been quick to react and adapt. We have refined our strategy and structured our operations so as to remain competitive and to be well-prepared for another challenging year in 2016.

"At the same time, we have not lost sight of our strategic objectives by building a foundation for longer-term growth. We continue to diversify our bid pipeline, pursue strategic alliances and have recently announced early stage discussions regarding our potential participation in the Maritime Yard in Saudi Arabia.

"In the meantime, our cost advantages and strong balance sheet will help us to compete in a very challenging market as the downturn is expected to continue through 2016."

Chief executive James Moffat sadded: : "Lamprell's operational performance has been consistently strong over the past few years and I am pleased to see that continuing throughout 2015, resulting in financial performance in line with expectations in the face of market headwinds. Having successfully implemented Project Evolution, the benefits from this programme of cost efficiencies and productivity improvements have proven to be key to both our operational and our financial results in 2015 and that will continue in 2016. We have been able to maintain our competitiveness in a market with significant downward pressure on pricing.

"As a result, not only have we maintained healthy margins, but this also helped us win one of only three rigs awarded globally in 2015. It seems unlikely that the markets will return to full recovery in 2016 and so we currently expect our full year revenues for 2016 to be around 5% below 2015 levels. Our business retains a high degree of flexibility leaving us sufficient room to undertake further measures to adapt to the market environment and preserve our long term future."

Am I missing something? Great results and two decent broker recommendations and still they fall!

Forward guidance for 2016 below previous.

JP Morgan Cazenove today reaffirms its overweight investment rating on Lamprell PLC (LON:LAM) and cut its price target to 122p (from 131p).

Thank goodness.........We might finally be heading north!

Rising at last..............£1 possible?

StockMarketWire.com
Lamprell executive chairman John Kennedy and chief executive James Moffat have agreed to extend their roles while the search for a new CEO continues. The group is also axing about 100 admin jobs to cut overheads.

Lamprell says these extensions ensure management stability during a challenging period for the industry. Kennedy and Moffat will remain in their respective roles until 31 December 2016 or until the appointment of a new CEO if this is earlier. Further to the extension of his period as a director and CEO, Moffat's exclusive consultancy agreement post-retirement will run until the end of March 2017.

In addition, given the continuing challenges in market conditions and as the construction cycle of current projects moves towards completion, the Group is implementing a number of cost saving measures in its fixed and variable costs.

In continuation of the earlier overhead reduction programme, the Group has taken immediate steps to reduce its management, professional and administrative headcount by around 100 people or a total of 8% of all overhead staff.

This includes project support personnel, as some of the ongoing projects reach completion, as well as back-office staff. The Group is also targeting other operating and overhead savings.

Does anyone know the reason why the large vote against John Kennedy to be a director?

Had some nibbling at today's price, spread 70 v 70.50p

Some large trades last Friday could be overhang being cleared and as the share price is bouncing could be the end of the fall. Indicators are at oversold. Market cap well below half revenue and on a PE of 7.

CHART with Indicartors

It seems for the last 3 days there was a seller of 1.35M shares and that was the main reason of the large drop in price last week.

Some bounce back this afternoon, as a buyer for the 667K sell was found this morning 10.33am

72.375p +1.625p

the order book has gone positive and with that the bid price up to 72p

76.25p +4.25p

And it seems today is strong this bounce, about time the movement up goes on the right way specialy as the oil price is reaching the $50

6% spread at mo isn't very friendly!