Lamprell H1 revenue up but swings to loss on Ensco settlement

UAE-based oil rig maker Lamprell reported a rise in first-half revenue but said it swung to a loss, partly as a result of its settlement with Ensco.

In the six months to the end of June, revenue rose to $451.3m from $351.4m but the company swung to a loss from continuing operations after tax and exceptional items of $4.4m from a $20.3m profit in the first half of last year.

Lamprell said the Ensco settlement reduced revenue by $25m and net profit by $35m.

The company said it expects full-year revenue to be slightly below analysts’ forecasts due to the settlement with Ensco for late delivery of a rig. It is now expected to be in the range of $400m to $500m depending on the outcome of a number of submitted bids awaiting award.

Executive chairman John Kennedy said: “Lamprell's substantial order intake two years ago meant that the business saw high activity levels and a solid underlying financial performance during the first half of the year although the results were impacted by the delay in delivery of the Ensco 140 rig. In addition, the industry downturn has continued to affect the sector and Lamprell's ability to win new contract awards during the period.

“However, the board has full confidence that Christopher McDonald, the incoming chief executive, will lead the business through the short and medium term difficulties ahead by maintaining Lamprell's competitive position, converting our bid pipeline and developing strategic partnerships."

At 1000 BST, the shares were up 8.7% to 60.87p.