Operating profits at the UAE based group tumbled from $90.2m in 2011 to a loss of $84.5m in 2012.
Liquidity at the company improved as 2011's net debt of $101.7m was reversed to a net cash reserve of $104.1m.
The results reflect a turbulent year for Lamprell as major difficulties and delays concerning the wind farm installation vessel Windcarrier 1 Brave Tern affected other contracts including Windcarrier 2 Bold Tern. Subsequently losses mounted at the company, the board replaced the entire senior management team, the Financial Services Authority imposed a $3.7m fine for failing to inform the market of its deteriorating financial position and an investigation into the troubled projects found the scale of the losses to be far worse than accounted for. Lamprell is currently in the process of restructuring its financial arrangements, a process it expects to conclude in mid 2013.
In 2012 Lamprell completed three jack-up rigs, two wind farm installation vessels and two land rigs as well as over 20 upgrade and refurbishment projects. New contracts totalling $1.1bn were signed in 2012, bringing the company's total orderbook to $1.3bn. The orderbook's value is dominated by new build jackups, accounting for 57% of the total, the remainder comprising of lifeboat newbuilds, rig refurbishment and offshore construction and engineering.
Commenting on the results in the group's financial results, John Kennedy, chairman of the board at Lamprell said "Despite continued global macroeconomic uncertainty, demand for our products and services remains strong in the midst of a robust and expansive oil and gas industry. In particular, we see a steady stream of newbuild and refurbishment projects in our home market of the Middle East as well as increased activity in the North Sea. In recent years there have been significant changes in our competitive landscape, in particular the entry of Asian players who can offer very competitive financial incentives to clients.
"However, we are confident that Lamprell's strong, historic track record of delivery and continued commitment to quality positions the Company well to benefit from continued growth in the oil and gas industry. Our current order book of US$1.3 billion and the bid pipeline of $4.1bn collectively represent a solid foundation for the business to grow in the coming years."
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
