2nd Aug 2019 10:52
(Alliance News) - Lamprell PLC narrowed its revenue guidance on Friday due to delays, slashing the top end of guidance by USD50 million and said financial performance is not expected to improve.
Shares in Lamprell were down 10% at 50.00 pence in morning trade in London.
The fabrication, engineering, and contracting firm, which specialises in the oil & gas and renewable energy industry, now expects to post revenue of between USD275 million and USD350 million "due to the delays with a number of awards".
Lamprell had previously guided for USD250 million to USD400 million of revenue for 2019. In 2018, the company's revenue was USD234.1 million.
"We currently have coverage for 100% of the bottom end of the range, with the high end of the range being contingent on new awards," the company said.
It also said it is not expecting an improved year-on-year financial business performance for 2019, both due to delays with contract awards as well as "the retention of capability to execute the expected pipeline of new business".
Lamprell's bid pipeline sits at USD6.3 billion. It said proposal activity was "high", but new awards remain at a slow pace. It is targeting opportunities which are set to "come to fruition later in 2019 and 2020".
Net cash stood at USD50 million on June 30, having been USD80.0 million at the end of 2018. Its current debt facility is set to expire this month and the company has obtained an extension to mid December while negotiating a new loan with a syndicate.
In terms of operations, Lamprell said it has finished assembling the final jackets for the East Anglia One project, and all have been installed by the client. Moray East project fabrication is "progressing well".
In the first six months of the year, Lamprell has completed nine rig refurbishment projects.
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