Lamprell, a leading provider of specialist engineering services to the international oil & gas industry based in the UAE, announces its Interim Results for the six month period ended 30 June 2008.
HIGHLIGHTS
• Revenue: US$ 318.2 million up 29.3% (H1 2007: US$ 246.1 million)
• Adjusted operating profit: US$ 50.5 million up 15.2%* (H1 2007: US$ 43.9 million)
• Adjusted net profit: US$ 52.3 million up 15.7%* (H1 2007: US$ 45.2 million)
• Adjusted EPS (fully diluted): 26.11 cents up 15.6%* (H1 2007: 22.58 cents)
• Proposed interim dividend: 6.40 cents (3.48 pence) per ordinary share (H1 2007: 5 cents)
• Cash and bank balances as at 30 June 2008 of US$ 147.3 million (31 December 2007: US$ 159.1 million)
• Order book as at 31 August 2008 of US$ 818 million (June 2008: US$ 890 million)
• Projects successfully completed in the six month period include:
- Nabors 660 jackup rig upgrade and refurbishment completed in line with schedule in March 2008 and handed over to Nabors Drilling ready to commence its long term contract with Saudi Aramco
- Aker SMART Floating, Production, Storage and Offloading (“FPSO”) process modules for Aker Kvaerner Production Systems. These modules were designed and constructed as part of a generic and modular design concept to suit typical production of around 60,000 barrels of oil per day
- Delivery of the final flash gas compression barge to Single Buoy Moorings Inc on the Kashagan project
* For the current six month period stated before reflecting exceptional charges for share based payments of US$ 4.1 million (H1 2007: US$ 9.0 million) granted to certain directors and selected management personnel pre IPO, and before reflecting various legal and professional charges of US$ 0.5 million (H1 2007: US$ nil) incurred in connection with the proposed admission of Lamprell plc to the Main Market of the London Stock Exchange plc.
Statutory results
The statutory results for the six month period after reflecting the exceptional charges noted above, are as follows:
• Operating profit: US$ 46.0 million up 31.9% (H1 2007: US$ 34.9 million)
• Net profit: US$ 47.8 million up 32.0% (H1 2007: US$ 36.2 million)
• EPS (fully diluted): 23.86 cents up 31.8% (H1 2007: 18.10 cents)
NEW CONTRACT AWARDS:
The first six months of 2008 saw the announcement of several high profile contracts. Work has commenced on all of these projects.
- Contract with Riginvest GP for the construction and delivery of a completely outfitted and equipped, LeTourneau designed, self-elevating Mobile Offshore Drilling Platform of a Super 116E (Enhanced) Class design amounting to US$ 186 million
- Lump sum turnkey construction contract with BassDrill Limited (“BassDrill”) for two self erecting tender assist drilling units, each vessel complete with living accommodation and a modular mast equipment package, amounting to US$ 204.5 million. 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
- Fabrication of an FPSO topside module for Saipem S.p.A. amounting to US$ 28.7 million
- Contract award from LeTourneau Drilling Systems Inc for the construction of four API 2000 HP fast moving land rigs amounting to US$ 21 million for delivery mid 2009
Commenting on the results Peter Whitbread, Chief Executive Officer, Lamprell said:
“The first six months of 2008 has been another successful period for Lamprell during which we have continued to deliver significant growth in turnover and secure a number of key contracts. Our business continues to expand in what is clearly a buoyant market for our services and we are delighted that the Company has embarked on its next phase of organic growth, with the opening of a new rig upgrade facility in Thailand where we expect to deliver revenues towards the end of 2008.
We are also delighted with the US$ 21 million contract award from LeTourneau Drilling Systems Inc., which provides an opportunity for Lamprell to demonstrate its reputation for technical capability and delivery in the new build land rig market.
We continue to focus on ways of improving our services to customers and we are progressing well with our operational expansion into Engineering, Procurement and Construction contracts (“EPC”), with new build liftboats, jackups and tender assist drilling unit construction. These projects represent a key development as Lamprell continues to expand its offering whilst enhancing its reputation as a new build fabricator of choice.
Our order book remains high and our pipeline strong, giving us confidence that Lamprell will continue to deliver in the second half of 2008 and beyond.”