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.

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!

StockMarketWire.com
Lamprell subsidiary Maritime Offshore Limited has signed a joint development agreement with the Saudi Arabian Oil Co, the National Shipping Company of Saudi Arabia (Bahri) and Hyundai Heavy Industries for a potential partnership collaboration for establishing a maritime yard, at Ras Al Khair in eastern Saudi Arabia. The JDA represents the next phase of development between the partners after signing the Memorandum of Understanding (MoU) in January.

The the partners have been working closely to undertake preliminary due diligence and feasibility studies.

Good progress has been made in recent months and, with the signing of the JDA, the partners intend to assess the operational, financial, personnel and legal aspects of the project in detail with a view to making a final investment decision in due course. The costs associated with the workstreams covered by the JDA will be shared by the parties according to the agreement.

The intended maritime yard will provide engineering, manufacturing and repair services for offshore rigs, commercial vessels and offshore service vessels. Lamprell is pleased to be part of this important undertaking which is looking at possible ways through which potential partners can leverage their collective know-how and current and future business needs, to help to promote economic development in the Kingdom of Saudi Arabia in line with the Kingdom's Vision 2030. It is also expected that the maritime yard will compete internationally and deliver projects to world class standards of quality and safety, areas in which Lamprell has a proven track record.

Markets have been all the way down for a while now, but LAM have keep well and moving side ways and now moving higher 77.25p +1.25p

Close position T+5 at 76.50p for a 6p gain or 8.50%

JP Morgan Cazenove today reaffirms its overweight investment rating on Lamprell PLC (LON:LAM) and cut its price target to 90p (from 122p).

StockMarketWire.com
Lamprell said that delivery of the jackup drilling rig which had been scheduled for delivery in Q2 2016 was delayed.

The rig is in its final stages of commissioning and has undergone a series of equipment proving tests in anticipation of delivery to the client.

During this final testing, a technical issue has arisen with equipment supplied by an original equipment manufacturer (OEM) and this resulted in a delay to the delivery of the rig.

In all other respects, Lamprell completed its workscope in making the rig ready for delivery.

Lamprell worked with the client and the OEM's technical experts, and has a forward work programme to deliver the rig to both Lamprell's and the client's high standards of quality.

The revised date for delivery of the rig is now expected to be mid-August.

The resultant delay in the delivery means that the group could be exposed to contractual remedies on the project including liquidated damages.

However, the board anticipates that the majority of the remedial costs and potential damages exposure as a result of this delay will be recoverable from the OEM.

The board is fully committed to recover such costs and damages legally, if so required.

Apart from the delivery of this rig, all other six rigs that Lamprell are currently constructing remain on schedule.

More broadly, the market environment remains very challenging and this will impact our revenues in 2017. The company said it will be providing guidance on this with our interim results on 22 September

Despite the difficult environment, the balance sheet and cash position remain strong and we have significant flexibility to further reduce our overhead costs if necessary.

Lamprell (ticker: LAM), a leading provider of fabrication, engineering and contracting services to the energy industry, announces that it has successfully delivered the "Ensco 140" LeTourneau-designed, Super 116E (Enhanced) Class mobile offshore drilling unit to Ensco. On 26 July 2016, Lamprell disclosed a delay in the rig's delivery and the resultant potential exposure to remedial costs and liquidated damages. Today, the Company announces that it has signed an agreement with the client to settle all claims arising from the late delivery of the rig.

The settlement agreement comprises a deduction of US$25 million from the final milestone payment in respect of late delivery. As part of the settlement, Lamprell will also provide additional services for the "Ensco 140 and 141" rigs, including temporary storage and grant an extended warranty for the jacking equipment supplied by the original equipment manufacturer, Cameron LeTourneau ("Cameron").

As a result of the settlement agreement, Lamprell's expected 2016 revenue will be reduced by US$25 million and the Company anticipates a reduction of around US$35 million on its expected 2016 profit. Further guidance for financial performance will be provided at the time of the announcement of the Group's interim results on 22 September 2016. Lamprell retains a positive net cash position and a healthy balance sheet which will be strengthened as the Group completes and delivers the six ongoing rig projects over the coming eight months.

Lamprell is committed to delivering projects safely, on time, on budget and to high quality standards. The late delivery of the "Ensco 140" rig was caused by failures in the jacking equipment that Cameron supplied. Lamprell has successfully implemented a solution for this issue on the "Ensco 140" rig and the Group expects to deliver the other six projects as planned. Lamprell's Board is fully committed to recovering the remedial costs arising from the technical defects in the jacking equipment from Cameron as well as seeking compensation from Cameron.

JP Morgan Cazenove has downgraded its investment rating on rig builder Lamprell (LON:LAM) to 'neutral' from 'overweight', which it says is due to increased 2017 earnings risk.

The broker added: "Lamprell's $25m settlement with Ensco for the late delivery of Ensco 140 was higher than we anticipated.

"There is no clarity on the timing or amount it can recover from Cameron, thus we no longer account for this in our forecasts.

"LAM's poor order intake and low revenue coverage for 2017 (16% from current backlog) remain key risks."

Analysts have cut their price target to 58 pence per share from 90 pence