Lamprell swings to loss on impairment

UAE-based rig manufacturer Lamprell posted a USD 184-million loss over 2016 on Friday, mainly on account of a USD 180.5-million impairment charge related to the 2011 acquisition of Maritime Industrial Services.

Lamprell’s financial results for the past year also saw revenue take a hit. The company posted USD 705 million, a drop of USD 166 million compared with revenue in 2015.

While Lamprell could land refurbishment contracts for the 14 rigs stacked at its facilities in the event of reassignment, the company is nonetheless cautious in its revenue projections for the current year.

“Revenues for FY2017 currently expected to be in the lower half of the USD 400-500 million range in the absence of large project deliveries in 2H2017,” Lamprell said in its release.

“The past year’s underlying performance was strong, albeit affected by one-off events, with market challenges expected to continue in the upcoming year. We are now fully focused on building a clear path to medium and long-term growth of the business,” Lamprell Executive Chairman John Kennedy said in comments on the results.

His sentiment was echoed by CEO Christopher McDonald, who joined in September 2016.

“Our short-term performance will be inevitably affected by the tough market environment, but we have implemented a set of effective measures to stand the Company in good stead to navigate the sector downturn,” McDonald said.