Record contracts boost Lamprell profit 10.8%

Lamprell announced yesterday that its revenue increased 127.8 per cent to $1.14 billion (Dh4.21 billion) in 2011. Its adjusted net profit was up 10.8 per cent to $73.8 million from $66.6 million in 2010. In 2011 the group was awarded a record $1.1 million worth of contracts, the company said. Lamprell proposed a final dividend of 8.00 cents per ordinary share. "We're very pleased with the numbers," said its CEO Nigel McCue, adding that the acquisition of Maritime Industrial Services Co had significantly contributed to consolidating the company's position as a market leader in the provision of contracting products and services in the oil and gas, and renewables industry. The acquisition of Maritime Industrial Services Co was completed in July 2011, increasing Lamprell's yard space to 925,000 square metres and the quayside to 2.2 km, which has helped expand the group's service offering, customer base and geographical range. "The ongoing increase in the oil price has also helped to bolster a record bid pipeline, and we ended the year with unprecedented levels of enquiries and bid activity," he said. Last year the group undertook 43 jackup rig upgrade and refurbishment projects. Contracts secured an additional five jackup rigs, giving the group's eight new build rigs under construction at year-end. In the renewable sector for wind farm installation vessels, McCue said that Lamprell delivered two vessels and is expected to deliver three more this year, adding that the group contributes to almost 25 per cent of all the vessels that are built for the wind farm market worldwide. "It's an important part of our business and going forward we're very positive about it," he said. When asked about the expectations for 2012, McCue said that this year will be a "strong year" with growth at around 10 per cent over 2011. Although most of the group's work is carried out in the UAE, the company is currently looking at increasing its capacity with two joint ventures in Saudi Arabia and Iraqi Kurdistan. "We feel that the situation in Kurdistan is politically much more stable than in southern Iraq, and we are quite comfortable working there," he said. From gulfnews