Middle East rig builder Lamprell has moved into the black, posting a profit. But, the firm warned that recent new order intake means 2014 and 2015 revenues could be lower than expected.
The Dubai-based firm, which initiated a strategic review and appointed a new CEO and CFO last year, following a string of profit warnings, said it was also looking to broaden its scope, with LNG modules and floating production, storage and offloading vessels in its sights.
Lamprell posted a $US52.9 million profit from continuing operations in 2013, compared to a $94.9 million loss in 2012. Revenues rose from $1,02billion in 2012 to $1,09 billion in 2013.
The growth was driven primarily by strong jackup rig activity, and a move to reduce overheads by 17%, with further initiatives being implemented, said Lamprell.
Last year saw Lamprell deliver its first jackup for the Caspian Sea and complete a number of process modules for the North Sea sector, as well as a number of newbuild jackup projects, the largest jackup conversion project in the company’s history, and rig refurbishment work.
Going forward, Lamprell said implementation the strategic review would continue. In the medium-term, the company will focus on new build rigs, offshore construction and fabrication, liftboats, rig refurbishment and land rig services.
Longer term, the company’s goal is to broaden its offering into related markets, including modular LNG and onshore plants, and to re-enter the FPSO markets. A review of non-core services businesses continues.
With lower recent order intake, revenues for 2014 and 2015 are expected to be slightly lower than 2013, while the Group rebuilds its order book, said Lamprell. As at 31 December 2013, the company had a $0.9billion backlog, with a $4.7billion bid pipeline.
John Kennedy, non-executive chairman for Lamprell, said: “Lamprell made great progress during 2013, improving project execution significantly and addressing the legacy issues, and as a result the company returned to profitability.
“In 2013 we implemented a series of productivity and process improvements, as well as certain cost efficiencies, which we plan to continue and develop further during 2014. We have strengthened our business development function and are now working on rebuilding the order book to position the company for future growth.”