30th Jun 2014 10:24
LONDON (Alliance News) - Energy engineering services company Lamprell PLC Monday said it expects earnings for the year as a whole to be ahead of expectations, albeit heavily weighted towards the first half of the year.
The oil services company said it has seen a strong operational and financial performance since the start of the year, having delivered four major projects in the first half of the year, all ahead of budgeted margins.
"Our bid pipeline remains strong, and we remain focused on the conversion of our pipeline of opportunities into further contract wins," the company said in its statement Monday.
Lamprell said it has two rig orders from Ensco and Shelf Drilling, as well as a recent contract award from Petrofac Ltd for modules to be deployed in Abu Dhabi. It said it also has seen an improved performance in its land rig services business.
The company said that during the first half, it took steps to reduce its overheads, something it hopes to continue to reduce going forward.
"This has also been supported by some early savings from productivity improvements being implemented across the group. We expect to start seeing the benefits from these initiatives during the course of 2014, although the full run rate is not anticipated to be achieved until late 2015," the company added.
Last week, Lamprell said the 5 for 16 rights issue it announced last month was fully subscribed, after it achieved a high level of acceptances in the offer and the bookrunners found investors to take up the small portion left.
Lamprell shares were up 2.1% at 158.75 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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