Lamprell is strategically located in the most important oil & gas region in the world. The Directors believe that Lamprell has established a position of sustainable competitive advantage that is based on its market position and internal strengths. Lamprell's competitive advantage is sustainable based on the following strengths:
Track record: Lamprell has a track record that demonstrates that it consistently executes projects safely, on time, to the correct specification and on budget. These key attributes have taken a significant amount of time and effort to develop and they differentiate Lamprell from its competitors.
Reputation: Lamprell has established a good reputation in the oil & gas services sector as a company which delivers on its promises. This reputation, with both customers and suppliers, has been established over the life of Lamprell and is reinforced by the attitudes of, and relationships maintained by, its senior management team. These relationships result in many contracts being awarded to Lamprell on a favourably negotiated basis.
Experience: Lamprell has project experience, particularly in the field of jackup rig upgrade and refurbishment but increasingly with respect to construction for the offshore and onshore oil & gas sector and land rig markets. With the enlarged Group, this experience now spreads to Engineering & Construction (“E&C”) and other services.
General management: Lamprell has a strong and established management team that adopts proven techniques in the fields of project and risk management. The skills required in providing a quality service have been internally generated over Lamprell's history and would be difficult to develop in the short term by emerging competitors. The senior management team also maintains key relationships with customers and suppliers.
Flexibility: Lamprell's senior management has established a task-oriented management structure and culture that allows the Group to adopt a flexible approach to strategy. This flexibility allowed Lamprell to expand successfully into both the offshore oil & gas construction sector, the land rig market, the new build jackup rig and the renewable energy market and more recently into onshore E&C.
Project management, engineering and procurement: Lamprell has knowledgeable and customer-trusted project management teams to manage its projects, as well as a large and experienced engineering services division and a procurement team that all combine to facilitate the timely and efficient execution of projects.
Resource management: Lamprell adopts a proactive long term approach to resource management to ensure that its facilities and equipment meet the needs of future business and projects. These skills led to Lamprell's timely expansion into its modern and purpose-built Jebel Ali facility and its newer Hamriyah state-of-the-art facility.
Human resource management: Lamprell's management invests significant time to ensure that it communicates its beliefs and values to all Lamprell personnel. It has a proactive attitude to training and supports employees who wish to undertake additional training to improve their work capabilities. The Directors believe that this has resulted in lower rates of staff turnover than are typical in the region and the industry.
Sub-contractor Relationships: Lamprell's management considers carefully on an ongoing basis the benefits and risks associated with outsourcing some aspects of Lamprell's operations to ensure that, if it sub contracts work to release capacity, it maintains control of the key aspects of projects.
The value chain: Lamprell fully understands the primary and secondary activities, such as production, operations, marketing and sales, procurement, human resource management and management systems that combine to produce value for the Group. Lamprell also understands and works hard to maintain the linkages between these activities to ensure that its customers gain the benefit of a full and integrated service.
Facilities: Lamprell has excellent facilities including fabrication space and deep water quayside berths. The acquisition of Maritime Industrial Services added significant build and berthing capacity to the enlarged Group. The Directors believe there is limited additional land and deep water quayside currently available in the Middle East region, which will act as a barrier to entry for any new competitors wishing to enter the market.
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