Lamprell Snags Contracts Totaling $390.5MM, Thailand Lease
Lamprell has announced its trading update for the six months ended June 30, 2008. The Company expects to announce interim results for the period on September 29, 2008. The highlights released by the Company include strong performance across all key business areas, the acquisition of two major contracts with a combined value of $390.5 million and international expansion with the launch of a deepwater quay side facility in Sattahip, Thailand for rig update and refurbishment.
As highlighted in the AGM statement on June 11, 2008, Lamprell has experienced a strong operational performance across all of its key business areas in the first half of 2008 and the financial results are expected to be in line with the Board's expectations.
During this period Lamprell has completed and handed over the Nabors 660 jackup rig to Nabors Drilling and has delivered a number of Floating, Production, Storage and Offloading process modules in the first half of 2008. In addition, the construction phases of the two new build jackup rig projects for Scorpion Rigs Limited and the two new build liftboat projects for Seajacks International Limited are progressing well and are on schedule. A number of new clients were added in the first half of the year including Hercules Offshore Middle East Limited, Riginvest GP and BassDrill Limited ("Bassdrill"), and together with the repeat business the Company receives from existing customers, the latest contracts have resulted in a record level of contract awards.
The number of rigs upgraded in the Company's facilities and consequential workload are both in line with internal projections for the first half of the financial year.
New Contract Awards
Lamprell was awarded a $28.7 million contract by Saipem S.p.A ("Saipem"). The contract is for the construction of two process modules with interconnecting pipe spools for the Livorno Floating Storage Regasification Unit project. The modules are scheduled to be delivered in 2010 and this award follows the successful completion of a similar project for Saipem earlier this year.
On June 16, Lamprell was delighted to announce a lump sum turnkey contract for the construction of a LeTourneau Super 116E jackup drilling rig with a value of $186 million for delivery in June 2010 and on June 24 the Group announced the largest single contract awarded to date from BassDrill with a value of $ 204.5 million. The BassDrill contract is for the construction of two self-erecting tender assist drilling units, each vessel complete with living accommodation and a modular mast equipment package. Under the contract, construction of the first unit is confirmed with work on the second unit conditional upon BassDrill raising the finance to fund the construction of the unit. This is another lump sum turnkey contract covering all aspects of the project execution. It is expected that the first unit will be delivered in September 2009, with the second unit scheduled for delivery in 2010.
In May 2008, the Group signed an initial 5 year lease for a 46,950m2 facility with 158 meters of exclusive deep water quay side in Sattahip, Thailand. Lamprell believes this expansion provides an excellent opportunity to transfer the skills and reputation it has built over many years, through its operations in the UAE, to a region which offers a significant fleet of jackup drilling rigs owned by predominantly the same group of clients that operate in the Middle East. The Group will commence the enhancement of the facilities shortly and anticipates executing the first revenue generating project in the fourth quarter of 2008, with full operations expected to commence in 2009.
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