18th Jan 2007 07:00
Lamprell Plc18 January 2007 LAMPRELL PLC ("Lamprell" or the "Company") TRADING UPDATE US$ 55.1 MILLION OF NEW CONTRACT AWARDS Lamprell, based in the United Arab Emirates and listed on London AIM (symbol:LAM) is a leading provider of specialist engineering services to theinternational oil & gas industry. Lamprell is pleased to announce the followingtrading update ahead of the announcement of its audited results for the yearending 31 December 2006, expected early April 2007. In addition, the Company isalso pleased to announce the award of contracts for the fabrication of topsideprocess modules for Floating, Production, Storage & Offloading ("FPSO") vesselsfor Saipem SA and Single Buoy Moorings, Inc ("SBM"). TRADING UPDATE In what continues to be a positive global oil and gas market Lamprell hasimproved its market position and gained new clients across all core activities.The Company has continued to make good progress in the second half of 2006 withall facilities performing well. The Board therefore anticipates that the Group'snet profit for 2006 will comfortably exceed current market expectations. FABRICATION OF FPSO MODULES FOR SAIPEM Lamprell has been awarded a US$30.3 million fabrication contract by Saipem SA tobuild six topside process modules for the Gimboa FPSO vessel which is destinedfor the Gimboa field, offshore Angola, operated by Sonangol P&P Angola. Inaddition to the main contract there is an option, for the sum of US$8.7 million,for the fabrication of the piperack. The contract, scheduled for delivery in August 2007, includes the fabrication ofthe lift gas and flash gas compression modules, chemical injection skid, low andhigh pressure separation modules, process manifold and local equipment room. The Gimboa field is situated 85 km offshore Angola at a water depth of 700metres. When completed, the converted tanker will have an oil storage capacityof 1.8 million barrels and a production capacity of 60,000 barrels per day. TheGimboa FPSO is scheduled for deployment in early 2008 to coincide with first oilproduction. FABRICATION OF FPSO MODULES FOR SBM Lamprell has been awarded a US$24.8 million fabrication contract under aframework agreement with SBM to build the topside process modules and theturntable/manifold structure for the Frade FPSO. The project, scheduled for completion in November 2007, includes the fabricationof seven topside process modules including test and second stage separationmodules, a main gas compression module, a gas/flash gas compression module andthe power generation module The FPSO, moored by an internal turret accommodating 33 risers, will be fittedwith topside process modules for the production of 100,000 barrels of oil, thetreatment and compression of 106 million standard cubic feet of gas per day andthe treatment and injection of 150,000 barrels of water per day. Peter Whitbread, Chairman and Chief Executive, Lamprell said: "We are delighted with the continued good performance of the business in 2006which, with our successful flotation on AIM in October 2006, has been a pivotalyear for Lamprell. We continue to see real growth in all aspects of thebusiness and a broadening of our client base whilst we are also pleased thatthere continues to be awards of business from our core base of existingcustomers. The current year has started well with our strongest ever order book, giving usimproved visibility of revenue. Given our strong trading position and bycontinuing to manage the business with a clear focus on risk management, webelieve that we are well positioned for further growth in 2007". Enquiries: Lamprell plc. (+9716 528 2323) Peter Whitbread, Chairman and Chief Executive Officer David Moran, Chief Financial Officer and Chief Operating Officer Citigate Dewe Rogerson, London (+44 207 638 9571) Media enquiries: Martin Jackson/George Cazenove Analyst enquiries: Nina Soon NOTES TO EDITORs • Lamprell, based in the UAE, has played an increasingly prominentrole in the development of the oil & gas industry in the Arabian Gulf for over30 years, in later years providing specialised engineering services to theindustry. • Lamprell's two primary facilities are in Port Khalid, in theEmirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai,both of which are in the UAE. • The principal markets in which Lamprell operates, and theprincipal services it provides, are: - Upgrade and refurbishment of offshore jackup rigs; - New build construction for the offshore oil and gas sector, includingFloating Production, Storage and Offloading ("FPSO") systems and other offshoreand onshore structures; and - Oilfield engineering services, including the upgrade andrefurbishment of land rigs. • Lamprell has grown strongly over the last four years, driven bybuoyant conditions in the oil and gas industry and the increase in capacity withthe opening of its facility in the Jebel Ali Free Zone in 2002. • Lamprell joined AIM, a market operated by London Stock Exchangeplc, on 16 October 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LAM.L