23rd Mar 2016 07:57
LONDON (Alliance News) - Lamprell PLC Wednesday said its results in 2015 were in line with expectations as it reported a large fall in revenue and profit as the challenging environment within oil and gas markets continued, warning revenue will fall a further 5.0% this year.
The company, which provides fabrication, engineering and contracting services to the oil and gas industry, said its pretax profit fell 28% year-on-year to USD67.0 million from USD93.7 million after revenue dropped 19% to USD871.1 million from USD1.08 billion in 2014.
The fall in revenue, which came in slightly below guidance, resulted in its gross profit falling to USD123.5 million from USD182.1 million, but Lamprell made cuts to its general and administrative costs and reported lower finance costs in the year to partly offset those falls.
Earnings before interest, tax, depreciation and amortisation fell to USD90.0 million from USD137.0 million as its Ebitda margin was squeezed to 10.3% in the year compared to 12.6% in 2014.
Lamprell said its backlog stands at USD740.0 million, which is down from USD1.20 billion at the end of 2014, of which around 90% is attributable to 2016. Lamprell's bid pipeline at the end of the year amounted to USD5.40 billion, slightly higher than the USD5.20 billion at the end of 2014.
Lamprell said it remains on track to deliver four major projects this year, but warned the conversion of its bid pipeline continues to be affected by delays.
Revenue in 2016 is expected to fall by around 5% year-on-year, suggesting revenue will amount to around USD828.0 million as the challenging market conditions are expected to persist throughout this year.
Lamprell said it will continue to cut costs and improve efficiencies in response.
By Joshua Warner; [email protected]; @JoshAlliance
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