Lamprell cuts losses, but expects financial results to remain under pressure
Source - SMW
Lamprell cut its pre-tax losses despite a fall in revenue amid volatile oil prices, though the company also said that financial results would remain under pressure.
For the year ended 31 December, the company reported a loss before tax of $70.6m from $97.9m a year earlier and revenue fell to $234m from $370.4m a year earlier, in line with guidance.
The fall in revenue comes amid volatility in the oil and gas industry and as ongoing challenges in the East Anglia One project more than offset lower revenue from other projects.
The loss in 2018 is driven by a combination of low levels of revenue from our profitable projects which have been insufficient to recover our operational overheads and an increase in the estimated loss on the East Anglia One project of $9.4m, taking the total overall estimated loss for the project to $89.4m.
'The primary cause for the increase in the loss is the additional cost incurred supporting the Belfast based subcontractor due to their financial difficulties,' the company said.
Year-end net cash position was reported at $80.0m, well below the $257.0m last year.
The company guided 2019 revenue in the range of $250-400m.
'Financial results will remain under pressure at the current revenue levels and cost base requirements for the Group,' the company said.
'Main focus for 2019 will be generation of healthy and sustainable backlog along with continuing discipline around costs and cash management, including monetising the LAM2K land rig and Super 116E rig kits.'
At 8:14am: (LON:LAM) Lamprell PLC share price was +0.7p at 55.7p