6th Jul 2007 07:00
Lamprell Plc06 July 2007 6 July 2007 LAMPRELL PLC ("Lamprell" or the "Company") TRADING UPDATE US$168 MILLION NEW CONDITIONAL CONTRACT AWARD Lamprell (symbol: LAM), a leading provider of specialist engineering services tothe international oil & gas industry based in the UAE, today announces itstrading update for the six months ended 30 June 2007. The Company is alsopleased to announce the award of a significant conditional contract with a thirdparty for a new build jackup drilling rig with a value in the region of US$168million. The contract is subject to the third party securing adequate financing. The announcement of Lamprell's interim results for the same period is expectedto be on 27 September 2007. Trading update As highlighted in the AGM statement of 11th June 2007, Lamprell has experienceda strong operational performance in the first half of 2007. During this periodthe value of contract awards has continued to grow at an unprecedented level.The total order book at the end of June 2007 is approximately US$513 million, aUS$126 million increase on the position at the end of Q1. The first half orderbook includes the conditional contract recently awarded by the third party andrepresents contracted revenues extending into the second quarter of 2009. New build jackup drilling rig contract This conditional contract is for the construction and delivery of a completelyoutfitted and equipped, LeTourneau designed, self-elevating Mobile OffshoreDrilling Platform of a Super 116E (Enhanced) Class design ("the Unit"). The Unitconsists of a triangular hull and three 477 foot truss type legs, each with anelectro-mechanical rack and pinion elevating system, which will allow drillingin depths of up to 350 feet of water. The Unit's primary operating capabilities will include accommodation for aminimum of 110 personnel, a 70 foot cantilever reach with +/- 15 feet oftransverse skidding for the drill floor and a rated drilling depth of 30,000feet. The conditional contract is a lumpsum turnkey contract that covers all aspectsof the project execution. It is expected that the Unit will be delivered inearly 2009. In addition to the award of the first Unit, Lamprell has agreed options with thecustomer for a further four Units to be exercised over an 18 month period fromDecember 2007. These contracts will be subject to negotiation, allowing forflexibility to take into account any potential cost variations. More details of this major contract award will be released to the market in duecourse. Outlook The board views the outlook for the remainder of the financial year withincreasing confidence. As a function of its strong first half operationalperformance and recent contract awards, Lamprell anticipates that the Group'snet profit for 2007 will comfortably exceed current market expectations. Commenting on this contract award Chairman and Chief Executive Officer, PeterWhitbread, said: "We are very pleased to report that the business environment for Lamprellremains strong and that the Company is well placed to take advantage of thiscurrent market buoyancy. The award of the new build contract for a jackup rig isa major milestone in the development of the Company, representing theculmination of many years of experience in jackup rig refurbishments. This hasprovided us with an extensive skills set to draw upon, thus enabling us toeffectively manage the risk of taking on larger lump sum contracts." Enquiries: Lamprell plc (+44 20 7638 9571)Peter Whitbread, Chairman and Chief Executive OfficerDavid Moran, Chief Operating Officer JPMorgan Cazenove, London (+44 20 7588 2828)Nick GarrettMalcolm Moir Citigate Dewe Rogerson, London (+44 20 7638 9571)Media enquiries: Scott Fulton/Kate DelahuntyAnalyst enquiries: Nina Soon Notes to editors • Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry. • Lamprell's two primary facilities are in Port Khalid, in the Emirate 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 the principal services it provides, are: - Upgrade and refurbishment of offshore jackup rigs; - New build construction for the offshore oil and gas sector, including Floating Production, Storage and Offloading systems and other offshore and onshore structures; and - Oilfield engineering services, including the upgrade and refurbishment of land rigs. • Lamprell has grown strongly over the last three years, driven by buoyant conditions in the oil and gas industry and the increase in capacity with the opening of its facility in the Jebel Ali Free Zone in 2002. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
LAM.L