Lamprell bid pipeline strengthens to $3.6bn even as revenue outlook worsens

An oil rig at Hamriyah, Sharjah. Oil, which maintained a $80/b streak for much of the summer has cooled off at the start of November. Jaime Puebla/ The National

British oil-rig builder Lamprell forecast a bigger drop in full-year revenue on Thursday, partly due to delays in major project awards, sending its shares down 9 per cent.

The UAE-based company said it expects 2018 revenue of $225 million to $300m, implying a drop of about 30 per cent at the midpoint of the range from the $370.4m it reported for 2017.

In September, Lamprell forecast a 10 per cent drop in revenue for 2018.

Lamprell, which called 2017 the "toughest year yet", said it expects major project awards to be pushed out to late 2018 and reiterated its expectation to grow revenue only in 2019.

The company, however, said its bid pipeline increased to $3.6 billion from $2.5bn at the end of 2016, as its expansion into renewable energy starts to pay off.

_______________

Read more:

Lamprell to book big loss in 2017 on windfarm costs

UAE yards to benefit from Lamprell role in $5bn Saudi maritime project

_______________

The firm has been expanding into renewable energy to bolster its business as it struggles with oil explorers cutting spending and cancelling contracts to cope with weak oil prices.

Lamprell, which runs three rig-building yards in the UAE, reported loss before interest, tax, depreciation and amortization of $70.5m for the year ended December 31, compared with a profit of $30.6m, a year earlier.

The company reported total losses on its East Anglia One (EA1) offshore windfarm project in the UK of about $80m because of mounting costs.

Lamprell's shares fell as much as 8.9 per cent to 64.1 pence at 0816 GMT.