THE INVESTMENT PROPOSITION
Lamprell is a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industry.
During H1 2014, Lamprell saw exceptional activity levels with many significant operational achievements:
- Strong operational performance in all core markets enhances Lamprell’s track record for project execution
- Successful delivery of two jackup rigs to National Drilling Company, the 13,200 tonne production utilities and quarters deck to Nexen for use in North Sea sector and a new self-propelled jackup vessel to Seajacks
- Largest and one of the most complex rig conversion and refurbishment projects in Lamprell’s history delivered to the client after the period end
- World class safety record continues on various projects including ten million manhours without a lost-time incident on Nexen project
- Project Evolution, a programme to deliver material productivity improvements and cost efficiencies, is progressing well and generating some early returns
Lamprell's market share remains strong in its core markets and the Company continues to see high levels of enquiries and bid activity with a robust pipeline of opportunities:
- Over US$ 900 million of new awards between January and August 2014 including multi-rig awards from each of Ensco and Shelf Drilling, as well as an award from Petrofac for modules to be deployed in Abu Dhabi
- Order book of US$ 1.2 billion (as at 30 June 2014)
- Bid pipeline of $ 4.9 billion (as at 30 June 2014)
A fundamental element of Lamprell’s updated strategy is to leverage our key strengths, namely our high build quality, strong safety record, commitment to reliability, our reputation for working collaboratively with our clients for success, our skilled workforce and our strategically-located facilities. Broader market conditions around our core markets remain competitive but these new contract awards demonstrate our clients’ confidence in our project execution, the value we offer and our renewed financial strength.
Lamprell has made significant progress in refocusing the business on its core activities and its objective is to capitalise on opportunities in those core markets where the business has strong established positions: new build jackup rigs, onshore and offshore construction, renewables, rig refurbishment and conversions and land rig services.