Monday, Mar 28, 2011
By Iain Packham
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Oil rig engineer Lamprell PLC (LAM.LN) expects to make a "relatively significant" acquisition in the Middle East in the short term, further consolidating its position in the region, Chief Executive Nigel McCue told Dow Jones Newswires Monday.
McCue wouldn't say how much Lamprell would spend but hinted the group would have to engage in fundraising. He said the company could ask shareholders for funds or could finance the acquisition through debt. The company currently has no debt and had $210.2 million cash at the end of 2010.
He said the company is looking at opportunities inSaudi Arabia and Kuwait as well as in Abu Dhabi.
McCue said that a resumption in the demand for new-build, premium jack-up oil rigs started in late 2010 and continues to grow. He said analysts predict that another 150 premium sector rigs are required in the sector.
As well as finding a business to buy that is complimentary and directly related to Lamprell's business, McCue said the group expects to complete the expansion of its Hamriyah yard in the United Arab Emirates. The company is already taking on another 40,000 square feet adjacent to the yard and is looking for more space to further increase capacity to meet the expected demand, McCue said. As a result of the constrained capacity across the industry margins are increasing, he added.
Shares at 0800 GMT were up 28 pence, or 8.9%, at 342 pence in a slightly higher FTSE 250 Market--up 0.3%
-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com
(END) Dow Jones Newswires
28-03-11 0813GMT
