March 22, 2018 / 8:22 AM / 5 months ago

UPDATE 1-Lamprell forecasts bigger drop in 2018 revenue, shares down

(Adds details on outlook)

March 22 (Reuters) - British oil rig builder Lamprell forecast a bigger drop in full-year revenue on Thursday, partly due to delays in major project awards, sending its shares down 9 percent.

The United Arab Emirates-based company said it expects 2018 revenue of $225-$300 million, implying a drop of about 30 percent at the midpoint of the range from the $370.4 million it reported for 2017.

In September, Lamprell forecast a 10 percent drop in revenue for 2018.

Lamprell, which called 2017 the “toughest year yet”, said it expects major project awards to be pushed out to late 2018 and reiterated its expectation to grow revenue only in 2019.

The company, however, said its bid pipeline increased to $3.6 billion from $2.5 billion at the end of 2016, as its expansion into renewable energy starts to pay off.

The company has been expanding into renewable energy to bolster its business as it struggles with oil explorers cutting spending and cancelling contracts to cope with weak oil prices.

Lamprell, which runs three rig-building yards in the UAE, reported loss before interest, tax, depreciation and amortization of $70.5 million for the year ended Dec. 31, compared with a profit of $30.6 million, a year earlier.

The company reported total losses on its East Anglia One (EA1) offshore windfarm project of about $80 million because of mounting costs.

Lamprell’s shares fell as much as 8.9 percent to 64.1 pence at 0816 GMT. (Reporting by Arathy S Nair in Bengaluru Editing by Saumyadeb Chakrabarty)

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