Wednesday, May 16, 2012

LONDON (Dow Jones)--Lamprell PLC (LAM.LN), which provide diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, said Wednesday it expects to incur a small first-half loss due to delays in key specialized vendor equipment deliveries for new build jackup projects together with the progressive slippage in the timing of expected new project awards and delayed client deliverables, together with the additional costs.

MAIN FACTS:

-Group expects a recovery in the second half of the year.

-Now expects full year revenue for 2012 to be broadly in line with last year at $1.1 billion with a net profit margin of 3.5%--considerably below the Board's original expectation for the year.

-Board believes Group's margin performance will recover in 2013.

-Board is reviewing cost base and adjusting it accordingly.

-Net debt at May 14 was $173 million, representing an increase of $71 million over Dec. 31, 2011 which stood at $102 million.

-Delayed equipment deliveries are representative of the current tightening in the worldwide supply chain for specialized jackup rig components which is expected to ease during 2013 when new capacity comes onstream.

-It is anticipated that the final delivery dates of the projects affected by delayed equipment deliveries will remain on track.

-Company has recognized further costs linked to the final specialized equipment commissioning on, and the delivery of, the wind farm installation vessel projects Windcarrier Brave Tern and Seajacks Zaratan both of which are scheduled for delivery in the second quarter.

-Group maintains a substantial order book extending to Q1 2015 which at the end of April was $1.58 billion.

-Group's bid pipeline at the end of April was $4.8 billion.

-Bid activity remains at a historically high level and Board remains optimistic that the long term prospects of the Group remain promising.

-Shares at 0710 GMT down 1.98 pence, or 68%, at 95.35 pence valuing the company at GBP767.55 million.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com

(END) Dow Jones Newswires

16-05-12 0715GMT