In its annual results statement for 2019 Lamprell said it had undertaken a major overhead reduction programme starting in early 2020 to protect liquidity and ensure the organisation was fit for purpose. The programme will result in a more than 20% overhead reduction in 2020 the company said.
As part of the programme Lamprell is consolidating its UAE yards into a single facility at Hamriyah. The company said it had mothballed its Jebel Ali facility in Q1 2020 while its Sharjah facility would be exited once it completes work on the Moray East windfarm project.
Lamprell said it had also made “significant” headcount reductions and spending and allowance cuts were implemented from January this year. There is also a 25% salary and directors fee cut from January 2020 for six months.
“Ensuring a sustainable future for the business is our absolute priority and we have taken a number of significant steps and self-help measures to reduce our cost base as the business addresses significant liquidity pressures,” said Christopher MacDonald ceo of Lamprell.
“The unpredictability and outlook challenges in the global energy market are well documented, but Lamprell is strategically well positioned, with well-established local operations in the Middle East and a growing track record in renewables.”
For 2019 Lamprell reported a $183.5m loss compared to $70.7m loss in the previous year.
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