Lamprell plc (LAM.L) reported Wednesday that it has maintained previous guidance range for revenue projections in 2018. There have been good levels of walk-in work which has resulted in 95% coverage for the bottom of the $225-$300 million range.
The company expects to deliver an outturn for the year in-line with this guidance, although results for 2018 will be significantly weighted to the first half of the year due to the scheduling of current projects and timing of new awards.
In its trading update, Lamprell said it has made good progress on the East Anglia One offshore windfarm project or EA1 Project with costs trending within previous guidance.
The company noted that although the market environment remains highly competitive, tendering activity has increased significantly during the period as it is currently bidding a number of major opportunities in both of targeted end markets of oil & gas and renewables. The company is actively engaged in discussions with different potential clients for new projects in key markets.
While this is indicative of an improved outlook for the energy industry, the company continues to not expect revenue growth until 2019.
Lamprell will announce its 2018 interim financial results on September 20.
Separately, Lamprell announced an update on its strategy in Saudia Arabia and the development of its local presence in the Kingdom.
Lamprell’s investment into Saudi Arabia is core to the Group’s growth strategy where primary focus to date has been the investment into the joint venture between Saudi Aramco, Bahri and Hyundai Heavy Industries to develop a major maritime yard in the Arabian Gulf, known as International Maritime Industries.
Lamprell is also pursuing other opportunities to gain a stronger foothold in Saudi Araba.
by RTTNews Staff Writer
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