UPDATE 1-Lamprell FY profit up, slashes final dividend

* Says final dividend payment of 3.15 cents

* Says order book extending into late 2010 (Adds details)

March 30 (Reuters) - Lamprell (LAM.L), an oil and gas services company operating in the Arabian Gulf, posted higher full-year profit, but slashed its final dividend by 74 percent citing the difficult market conditions.

"It has become apparent in recent weeks that there is a marked slowdown in the company's business except for the rig refurbishment business which is currently busy but is anticipated to slowdown in the second half of the year," the company said on Monday.

However, Lamprell said it continued to operate with a substantial order book extending into late 2010.

For the year ended December 2008, the company's adjusted net profit was $95.5 million, compared with $86.2 million in the year-ago period.

Revenue rose 58.5 percent to $740.8 million. Analysts on average expected $630.7 million, according to Reuters Estimates.

The company proposed a final dividend of 3.15 cents per share, compared with 12.25 cents a year ago.

Shares of the company closed at 65.50 pence Friday on the London Stock Exchange. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Himani Sarkar)