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Lamprell bidding for $3.1bn in new contracts, 2018 to remain challenging

Lamprell bidding for $3.1bn in new contracts, 2018 to remain challenging
UAE shipyard operator Lamprell is bidding for $3.1bn in contracts but says the outlook for 2018 remains challenging.

Lamprell reported a first half profit for 2017 of $1.1m, compared to a loss of $4.4m in the first half 2016. Revenues tumbled to $159.2m in the first half of 2017 compared to $451.3m in the same period a year earlier.

Its orderbook backlog fell to $300m at the end of June 2017 compared to $393m at the end of 2016.

The shipyard operator said its bid pipeline increased to $3.1bn at the end of June this year compared $2.5bn at the end of 2016. Lamprell said the increased bid pipeline was “underpinned by opportunities in core markets as well as new strategic initiatives in the renewables and EPC sectors; while the increased levels of bidding activity are encouraging, we do not expect to see revenue growth from potential contract awards until 2019”.

Christopher McDonald ceo of Lamprell commented: “Our balance sheet remains robust due to the combination of the efficiency measures we have taken over the past two years and our tight cost control measures. This places us in a good position to be cost competitive and maintain our discipline in bidding for new work.”

The business outlook for 2018 remained challenging with revenues expected to drop by a further 10%. However, Lamprell flagged up the progress on its joint venture yard project in Saudi Arabia.

“I am delighted that we secured an unprecedented opportunity to partner with Saudi Aramco, Bahri and Hyundai Heavy Industries to create a major new maritime yard in Saudi Arabia, establishing a significant long-term foothold in the largest and one of the most dynamic oil and gas markets,” McDonald said.

“The project will further strengthen our position in the region and will provide exposure to significant new opportunities in a key market for the energy industry.”