27th Nov 2015 07:48
LONDON (Alliance News) - Energy services company Lamprell PLC on Friday said it is on track to deliver results for 2015 in line with its expectations following a continued strong operational performance in the business in the second half.
Lamprell said all the projects it is working on are progressing well and said it has won further contracts from Petrofac Ltd, a larger London-listed oil services business, which has nearly doubled the number of pre-assembled racks it will manufacture.
In addition, Lamprell said it is currently working on seven concurrent jack-up rigs, a record number for the group, driven by the recent yard optimisation measures it put in place under its Project Evolution operational strategy.
Lamprell said its investment programme has driven savings and efficiency benefits in the business, helping it maintain its position in the market and mitigating some margin pressure it is facing, in line with the wider oil and gas services sector.
The company said it remains on track to hit its guidance for 2015, with its earnings to be weighted to the second half. Due to a large volume of construction work falling in the second half, Lamprell said it has increased its project workforce by around 1,500 employees.
"While Lamprell isn't immune to on-going headwinds in the oil & gas markets, we are pleased to see that our early implementation of the efficiency measures under Project Evolution has positioned the Group to be competitive, which will be key for our future success," said James Moffat, Lamprell's outgoing chief executive. The company said the search for a replacement for Moffat is ongoing.
"These actions have allowed us to retain and even build our project workforce, improve our efficiency levels to maintain operational performance, and remain commercially competitive in an environment of increased pricing pressure," Moffat added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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