Lamprell sees revenue drop, delays projects-report

DUBAI, July 28 (Reuters) - Lamprell Plc (LAM.L), an energy services firm operating in the Gulf, will delay several projects and is expecting a 26-percent drop in revenue this fiscal year, its top executive said in remarks published on Tuesday.

Due to a tight debt market and a slowdown in demand for new build jack-up maintenance rigs, the firm is looking at $500 to $550 million in revenue this year compared to $740 million last year, Emirates Business reported citing Chief Executive Nigel McCue.

"On the jack-up refurbishment side, we are seeing the same number of rigs to yards between 25 and 30 in a year but a reduction in the value of work," said McCue.

"The new build market slowed down mainly because it is linked to commodity prices and the fact that quite a big number of newbuild jack-up rigs are going to come to the market."

Some of the orders are being delayed due to limited financing, such as the second jack-up project for Scorpion Offshore Ltd (SCORE.OL), he said.

"That particular project got slowed because Scorpion had some financing difficulties," said McCue.

The company also slowed down the expansion of its new Hamriyah facility, said McCue. The $50 million project, which was due to be complete this year, has been pushed back to 2010.

Once complete the facility will enable Lamprell to work on up to 10 rigs simultaneously.

In May, the company said in a statement that its year-to-date performance was broadly in line with its expectations, despite challenging trading conditions. (Reporting by Amena Bakr; Editing by Mariam Karouny)