UAE-based Lamprell has announced an update on its performance in the year to date and has reduced its net cash by US$50 million due to delays in number of project awards.
In a statement, Lamprell said that due to the delays with a number of awards, they have narrowed revenue guidance for 2019 to US$275-350 million.
"We currently have coverage for 100 per cent of the bottom end of the range, with the high end of the range being contingent on new awards."
On the operational side, Lamprell said that its rig refurbishment segment continues to attract a good flow of work.
"In the first six months of 2019, we completed nine refurbishment projects and received eight rigs in our yards for various refurbishment works, as well as adding two new contracts which are due to arrive in our yards during the second half of the year. We are currently stacking 12 rigs in Sharjah and Hamriyah, the majority are warm stacked and we see a gradual, albeit small, increase in the scope of work performed."
Lamprell says it is seeing an improving outlook but this won’t bring a yearly improvement.
"We will not see a year on year improvement in the financial performance of the business due to a combination of the previously mentioned delays in contract awards and the retention of capability to execute the expected pipeline of new business. We have seen early interest from the Middle East customer base in both jackup and land rigs, which supports previously announced output growth plans from the region in the medium term."