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UPDATE 1-Lamprell sees 2012 loss much bigger than expected
November 19, 2012 / 7:51 AM / 5 years ago

UPDATE 1-Lamprell sees 2012 loss much bigger than expected

Nov 19 (Reuters) - Oil rig maker Lamprell Plc said its full-year loss would be more than 7 times bigger than it previously forecast on continuing difficulties with several projects.

The company, which has already issued four profit warnings this year, said it now expects a total loss of about $105 million, from its earlier view of a loss in the range of $12 million and $17 million.

Lamprell said it remained in discussions with its lenders to obtain a waiver of certain of its banking covenants before the year-end.

The company’s bleaker forecast arose following a review conducted by an external accountancy and consultancy firm appointed by Lamprell to undertake an assessment of the expected outturn on certain major projects and their impact on its financial position.

Last month, its chief executive stepped down along with two other senior managers, in the wake of its fourth profit warning.

Lamprell’s Caspian Sea jack-up project is causing the biggest hit to the company to the tune of nearly $25 million, with the company citing low labour productivity and restricted availability of equipment at a third-party facility as the reasons for the loss at this project.

Shares in the company, which closed at 69.25 pence on Friday, have lost about 72 percent of their value this year.

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