03:00 Wed 22 Jul 2020
Lamprell plc - Trading Update
("Lamprell" and with its subsidiaries the "Group")
TRADING UPDATE
Lamprell announces the following update on its performance in the year to date.
· Strong operational performance as we continue to safely deliver projects for all of our customers
· EBITDA for H1 broadly breakeven despite headwinds of COVID-19 and low oil prices
· Net cash increased to
· Backlog increased to
· Our strategic growth objectives further progressed by:
o securing our third offshore wind project in the fast-growing renewables segment
o advancing our digital aspirations in collaboration with our partner Injazat
o submitting a number of proposals for Saudi Aramco's LTA during the period
Operational update
Despite the wide-ranging effects of COVID-19, we are pleased to report robust operational progress on all our current projects. Both the IMI rigs and
Two new and noteworthy projects have been added to our backlog since the beginning of the year, namely the engineering, procurement, installation and commissioning contract for the Mahani gas field in
As previously announced, the Group took swift and decisive action at the onset of the COVID-19 pandemic. These measures were aimed at protecting the health and wellbeing of our employees, de-risking our supply chain, ensuring continued progress of ongoing projects, and achieving a significant reduction of our cost base to protect liquidity.
COVID-19-related cost savings, which are largely associated with a 25% reduction in fees, salaries and allowances for the Board, senior management and professional staff for the initial period of April through to
Further to this, we remain on track to deliver a
Following the two new project wins in the first half of 2020, backlog at
Subject to review by our auditors, revenue in the first half of 2020 was
Balance Sheet update
As the industry and global markets work through the significant impacts of COVID-19, our absolute priority is to protect the health and welfare of our employees, while continuing to deliver our projects, preserve cash and maximise liquidity. As a result of the above mentioned measures and good progress on our contracts, net cash as at 30 June increased to
The balance sheet retains sufficient headroom to support ongoing projects and we have secured a small project facility for the Seagreen project. We are making progress in securing additional project-specific funding options to improve working capital liquidity over the medium term.
Outlook
Our bid pipeline currently stands at
Our investment and presence in
Our expertise and track record in renewables continue to deliver an increasing number of high quality projects for the bid pipeline. Further, our reputation and established operations in the
"This has been a period of significant progress for Lamprell. The response of our people to the COVID-19 crisis has been excellent and we have continued to deliver well for clients on current projects. Winning two new contracts in a period of global economic turmoil is further testimony to the effectiveness of our strategy. There is good momentum in the business and our operational performance. The proactive actions we have taken on costs, and an active bid pipeline with exposure to buoyant regions in both oil & gas and renewables, provide us with confidence that we are successfully navigating the challenges of COVID-19 and the industry downturn."
Lamprell will announce its 2020 interim financial results on
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Notes to editors
Lamprell, based in the
Lamprell employs more than 4,000 people across multiple facilities, with its primary facilities located in Hamriyah, in the
Lamprell is listed on the
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