Oil rig refurbishment and construction specialist Lamprell (LAM) gains 5.2% to 83.9p as it wins a $225m contract on a wind farm in the North Sea from ScottishPower Renewables.

The work on this flagship project could open up new avenues for the UAE-based business which has been hit by a slowdown in activity in the oil and gas sector.

Lamprellchart

The East Anglia One project involves 102 turbines with a capacity of 7 megawatts (MW) each and is expected to generate power for more than 500,000 homes on an annual basis.

Working in partnership with Belfast marine construction outfit Harland & Wolff, Lamprell's involvement encompasses procurement, fabrication and supply of 60 foundations (comprising of jackets and piles). Jackets and piles are the structures used to support a turbine in the water.

Fabrication work in Lamprell's Jebel Ali and Sharjah yards in the UAE is scheduled to start in March 2017, with deliveries to be made between March and October 2018. The size of the contract looks material in the context of the $400m to $500m guided revenue for 2017.

New chief executive Christopher McDonald, previously head of business development for Petrofac (PFC), joined the company at the beginning of October (3 Oct) and the shares have been in a steady upwards trend since then. They are up 15% in the last month and more than 50% from the 55p record lows marked in late September.

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Issue Date: 25 Nov 2016