Lamprell warns over pandemic hit, shares slide

Lamprell tanked on Monday after it reported a jump in full-year revenue but warned that its financial performance has been affected by higher costs associated with the pandemic.

In an update ahead of its results for the year to the end of December 2021, the company said revenue had grown 15% on the year to $389m.

The UAE-based oil and gas services group said it had continued to deliver a good operational performance in 2021, but it was hit by additional costs associated with "significant impacts of Covid-19 on the supply chain and labour availability".

"Multiple lockdowns and travel restrictions affected our supply chain and labour availability during the year," it said. "Lamprell has been successful in managing pandemic-related disruption effectively, although incremental costs due to reduced productivity and rephasing of work have impacted the group's profitability in 2021."

Chief executive officer Christopher McDonald said: "We are pleased to deliver revenue growth for the third year, albeit with continuing impacts of the Covid-19 restrictions on the bottom line.

"Lamprell is embracing the energy transition with its Lamprell Reimagined strategy, we are very encouraged by the market outlook and bidding dynamics in both our end markets of renewables and oil and gas and the continuing significant growth of our bid pipeline."

At 0950 GMT, the shares were down 11% at 31.01p.