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.

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

ok - so it looks like the support level of around 63-65 is under pressure today and looking at L2 right now I doubt it's going to hold.

I'm waiting for an entry as at some point the forward profitability and cash pile supports the price

Hmmm.....not sure. A few days ago I watched a number of 'experts' on CNBC comment that there were so many rigs about at the moment which were not being used that the rig market was a bit like the bulk shipping market. Far too many swinging about on temporary moorings waiting for things to improve and also far too many still being produced and refitted. With predictions for the oil price over the next 12 months being between $40-$60 pb that isn't going to encourage the explorers to get drilling.

StockMarketWire.com
Lamprell has won a new contract award from ScottishPower Renewables for the fabrication of multiple jackets and piles for the East Anglia One Offshore Wind Farm.

The East Anglia One project is located in the UK waters of the southern North Sea and aims to be the best value offshore windfarm to go in to construction anywhere in the world.

It is a large-scale project which will utilise 102 turbines, each with a capacity of 7 megawatts (MW), which is expected to generate power for more than 500,000 homes every year.

Lamprell's contract will also create jobs in the UK, working closely with Harland & Wolff in Belfast on this project.

Drawing on 150 years of experience in marine construction, Harland and Wolff will perform jacket assembly works for Lamprell at its modern facilities in Belfast, prior to final delivery to ScottishPower Renewables.

Lamprell's scope of works includes procurement, fabrication and supply of 60 foundations (comprising jackets and piles) to ScottishPower Renewables who will then install the jackets foundation structures to facilitate later installation of the wind turbine generators offshore.

Fabrication work in Lamprell's Jebel Ali and Sharjah yards in the UAE is scheduled to start in March 2017, with deliveries to be made between March and October 2018.

The contract is valued at approximately US$225 million.

Chief executive Christopher McDonald said: "We are proud to be part of this flagship project developed in the North Sea. This is a significant award for Lamprell and represents a big step forward in servicing the fast growing renewables segment. This project gives us an opportunity to demonstrate how our fabrication skills are once again transferrable to other areas of the energy industry and beyond our traditional sweet spot in the oil & gas sector."

84p +4.25p

Lamprell wins North Sea wind farm contract

Lamprell has won a new contract award from ScottishPower Renewables for the fabrication of multiple jackets and piles for the East Anglia One Offshore Wind Farm.

The East Anglia One project is located in the UK waters of the southern North Sea and aims to be the best value offshore windfarm to go in to construction anywhere in the world.

It is a large-scale project which will utilise 102 turbines, each with a capacity of 7 megawatts (MW), which is expected to generate power for more than 500,000 homes every year.

Lamprell's contract will also create jobs in the UK, working closely with Harland & Wolff in Belfast on this project.

Drawing on 150 years of experience in marine construction, Harland and Wolff will perform jacket assembly works for Lamprell at its modern facilities in Belfast, prior to final delivery to ScottishPower Renewables.

Lamprell's scope of works includes procurement, fabrication and supply of 60 foundations (comprising jackets and piles) to ScottishPower Renewables who will then install the jackets foundation structures to facilitate later installation of the wind turbine generators offshore.

Fabrication work in Lamprell's Jebel Ali and Sharjah yards in the UAE is scheduled to start in March 2017, with deliveries to be made between March and October 2018.

The contract is valued at approximately US$225 million.

Chief executive Christopher McDonald said: "We are proud to be part of this flagship project developed in the North Sea. This is a significant award for Lamprell and represents a big step forward in servicing the fast growing renewables segment. This project gives us an opportunity to demonstrate how our fabrication skills are once again transferrable to other areas of the energy industry and beyond our traditional sweet spot in the oil & gas sector."

Canaccord Genuity Hold 96.25 70.00 100.00 Reiterates

StockMarketWire.com
Lamprell has welcomed recent change in oil and gas market sentiment but believes 2017 will prove a particularly cautious environment and will continue to maintain tight control over expenditure.

In a pre-close trading update Lampress said it has retained its focus on operational performance and, during 2H 2016, three rigs had been delivered on time, with the three further rigs currently under construction in its Hamriyah yard progressing to plan for delivery in the first half of this year.

The update continued: "The group's strong safety performance continued with the Jebel Ali yard achieving over 15 million manhours and over 1,500 days without a Day Away From Work Case.

"Our safety track record strengthens our competitive position with top tier clients. Lamprell was also recognised by being awarded a regional Corporate Health and Wellness Award for a third consecutive year."

Lamprell said it has adapted to market pressures by continuing its programme of cost-cutting in overheads.

It aid that following the announcement in May, the group had undertaken a further 20% reduction in its administrative staff headcount which included some redundancies at the senior management level.

It added: "Further, as several large projects have progressed to delivery or final stages of construction, Lamprell has released the related yard workforce, resulting in an overall reduction in headcount to around 4,000 people at the end of 2016.

"While making these reductions, we have deliberately retained our core competitive strengths, to ensure that Lamprell is well-positioned as the market recovers.

"As expected, 2016 saw lower levels of walk-in work than the previous year.

"Most of the rigs stacked in Lamprell's facilities throughout the year remained inactive, having generated only limited refurbishment revenue. Consequently, Lamprell's revenue for the year is expected to be approximately US$700m."

Executive chairman John Kennedy said: "The board recognises and welcomes recent change in oil & gas market sentiment and the likelihood of stronger product pricing in 2017, especially as the year elapses.

"However, we also recognise that all our customer 2017 capital budgets are already established and in place, and that there is little expansive flexibility in the associated expenditures.

"For these reasons, the company continues to believe that 2017 will prove a particularly cautious environment, and will continue to maintain tight control over expenditure and expenses and, more especially, continue to position Lamprell for work in future years."

Lamprell will announce its full year 2016 financial results on 24 March.