31 August 2021
("Lamprell" and with its subsidiaries the "Group")
Update on the balance sheet recapitalisation
Further to the announcement on 3 August 2021, Lamprell provides an update on progress with its balance sheet recapitalisation plans.
The Group continues detailed discussions with three regional banks on USD 90 million of Export Credit Agency backed working capital facilities for the completion of the two IMI rigs. These facilities are expected to be comprised of two equal tranches and conclude in Q3 2021 and Q4 2021 respectively.
The Board remains confident in the successful completion of the ongoing debt discussions and is also evaluating alternative ways of monetising existing assets and investments to minimise the size of the equity raise.
As previously announced, the Group expects to raise a minimum of USD 30 million through equity in Q4 2021. The details of any potential equity raise are subject to market conditions and will be announced in due course.
In the meantime, management of working capital remains the Group's priority. Net cash at 28th August was USD 79.3 million (USD 81.1 million at end of June 2021) and the Group continues to take a disciplined approach towards cash collection, with significant contract receipts received in August and further receipts expected from ongoing projects throughout the rest of the year.
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Notes to editors
Lamprell is a leading provider of services to the international energy sector. Driving strategy and growth through its Renewables, Oil & Gas and Digital business units, underpinned by almost half a century of expertise, the Group has worked hard to establish its reputation for delivering projects safely, on time and to budget.
The Group has firmly established its international credentials in the renewables sector as well as continuing to build on its traditional oil and gas credentials. We are recognised for building complex offshore and onshore process modules and platforms, fabricating and refurbishing jack-up rigs and liftboats.
Lamprell employs more than 5,000 people across multiple facilities, with its primary facilities located in Hamriyah, in the UAE. Combined, the Group's facilities cover approximately 800,000m2 with over 1.5 km of quayside. In addition, the Group has facilities in Saudi Arabia (through a joint venture agreement). Lamprell is listed on the London Stock Exchange (symbol "LAM")."