REG - Lamprell plc - Interim Management StatementReleased: 27/04/2010
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Lamprell plc
27 April 2010
27 April 2010
LAMPRELL PLC
("Lamprell" or the "Group")
INTERIM MANAGEMENT STATEMENT
Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas and renewables
industry, issues the following Interim Management Statement for the period 1 January 2010 to 26 April 2010.
The performance to date has been in line with management expectations and 2010 has started positively as evidenced by the
major contract awards announced by LamprelI in the first quarter of the year.
We continue to see evidence of improvements in our operating markets and our bid activity remains high. A priority for
management continues to be our focus on pro-actively managing the Group's cost base, in particular the level of labour
employed and the amount of hired equipment being utilized, whilst at the same time maintaining first class project
execution. In addition, the procurement group continues to establish strategic agreements with key suppliers and this
initiative is already delivering substantial cost savings which are forecast to continue throughout 2010 and beyond.
From an operating perspective Lamprell continues to focus on maintaining high standards of project execution, with a
particular emphasis on quality and safety, whilst delivering projects both on time and on budget. In 2010 the Company has
been awarded Engineering, Procurement and Construction ("EPC") contracts by Fred Olsen Windcarrier AS to build two Gusto
MSC NG-9000 design self elevating and self propelled offshore wind turbine installation vessels and a leading oil and gas
operator in India awarded Lamprell a contract to design and construct two offshore well head platforms. The engineering and
procurement phase of these projects is progressing on schedule and fabrication work will commence at our Jebel Ali facility
shortly. At our Hamriyah facility work continues on the Offshore Mischief for Scorpion Rigs Ltd and the rig will be
delivered on time and on budget at the end of this month. Lamprell remains in discussion with Riginvest G.P. regarding
financing options of the LeTourneau Super 116E jackup drilling rig project.
In rig refurbishment we have worked on a total of 24 jackup rigs in 2010 year to date and these projects have included work
scopes covering the full range of our upgrade and refurbishment service. These projects have been shared between our UAE
facilities, with Sharjah working on 10 rigs and the Hamriyah facility working on 15 jackups, whilst in Thailand we are
currently working on a tender barge refurbishment project for MRT-1 Ltd. In Jebel Ali the spud can extensions for Master
Marine ASA were successfully delivered in March and work is proceeding on the Livorno and Aquila process modules for Saipem
S.p.A. and Saipem Energy Services S.p.A. respectively.
The Group maintains a substantial order book extending to 2012 which at the end of March was approximately US$ 638 million,
comprising approximately US$ 501 million from EPC projects and approximately US$ 84 million from offshore construction
projects, including offshore well head platforms, Floating Production, Storage and Offloading units and accommodation
modules. The Group's financial position has not changed significantly from 31 December 2009, however, cash and bank
balances have improved with the receipt of the final payment from BassDrill Alpha Limited on completion of a tender assist
drilling unit.
We continue to see high levels of enquiries for our services in most sectors of our business and the Board remains
optimistic that the long term prospects of the Group remain promising.
- Ends -
Enquiries:
Lamprell plc
+44 (0)20 7920 2330
Nigel McCue, Chief Executive Officer
Scott Doak, Chief Financial Officer
M:Communications, London
Patrick d'Ancona +44 (0)20 7920 2347
Georgina Briscoe +44 (0)20 7920 2348
Notes to editors
Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the
Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry.
· Lamprell's three primary facilities are in Port Khalid and the Hamriyah Free Zone, in the Emirate of Sharjah, and in
the Jebel Ali Free Zone, in the Emirate of Dubai, all of which are in the UAE.
· The principal markets in which Lamprell operates, and the principal services it provides, are:
o Upgrade and refurbishment of offshore jackup rigs;
o Engineering, procurement and construction of jackup rigs, liftboats and drilling
related equipment;
o New build construction for the offshore oil and gas sector, including Floating
Production, Storage and Offloading systems and other offshore and onshore
structures; and
o Oilfield engineering services, including the upgrade, refurbishment and new
building of land rigs.
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