The chairman of rig builders Lamprell has hailed the company’s return to the black after turning round heavy losses from 2012 – but said work still needed to be done to rebuild the firm.
The Dubai-based company reversed a £70million loss two years ago into an £18million profit, after refocusing on delivering existing projects following an unsuccessful move into riskier areas in recent years.
But with a lower recent order intake, the company warned it expected revenues for this year and next year to fall as the focus switches to rebuilding its back orders.
The company confirmed its current order book was around $900million, with $4.7billion worth of bids still in the pipeline as it looks to strengthen its operations.
“Lamprell made great progress during 2013, improving project execution significantly and addressing the
legacy issues, and as a result the Company returned to profitability,” said chairman John Kennedy.
“In 2013 we implemented a series of productivity and process improvements, as well as certain cost efficiencies, which we plan to continue and develop further during 2014.
“We have strengthened our business development function and are now working on rebuilding the order book to position the Company for future growth.”
Revenue was up slightly year-on-year, thanks to new oil, gas and renewables builds, to $1.092billion.
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