Lamprell Steady Despite Softening Oil Market Outlook

Lamprell reported strong results for 2014H1, increasing revenues to $632.2 million from $506.6 million, operating profit relating to continuing operations to $53.4 million from $19.2 million, and total profit attributable to equity holders to $77.7 million from $7.3 million in 1H 2013, an interim statement said. The company does not publish quarterly data but issues trading statements from time to time.

Lamprell Revenue by Segment (2013)

Lamprell completed a rights issue in June and reorganized debt financing in August.

“The successful completion of both a $120 million rights issue and a $350 million refinancing package (along with a $250 million bonding facility) has enabled us to implement our refreshed growth strategy and we are already starting to see positive initial results, both operationally and financially,” Moffat said.

Over half of the 2013 revenue mix, or 53 percent, was in jackup newbuilds, with jackup refurbishment taking another 11 percent and fabrication 18 percent, according to Liberum Capital. Moffat is clearly intent in diversifying the revenue mix, and Moffat has stated that he would like to increase company involvement in the floating production and storage offloading unit (FPSO) business, which he thinks is improving.

“Our main focus in 2013 and early 2014 was steadying the ship, which clearly we've now done,” said Moffat, writing in Lamprell’s 3Q 2014 newsletter. “In 2014, we ... have rebuilt our order book, winning significant awards from both new and existing customers, and conversion of our bid pipeline remains a top priority.”

An offshore engineering, construction and project management veteran, Moffat joined Lamprell after a period of management instability accentuated by the global financial slowdown.