Dubai-based Lamprell’s shares have dropped 15% after warnings it faced “a challenging 2015”.
The firm said that falling price of crude had placed annual revenue at 10% below expectation.
Jim Moffat, chef executive, said: “With the recent slump in the oil price, winning work in 2015 is going to be a challenge as the industry adjusts to the new realities.
“We are entering this period in a position of relative strength with a strong balance sheet and a high backlog.”
The firm said the year was initially off to a “good start” but had slipped as energy companies cut spending plans during the “dramatic fall” in oil prices.
A spokesperson for Lamprell said: “We have already seen some of the global drillers announce reductions in their capital expenditure programmes and this trend is expected to increase.
“While short-term tendering activity will continue at a pace required to meet current demand, our ability to carry on winning new business is contingent on the state of the broader industry.
“The scale of the readjustment will remain unclear until the market and the commodity price stabilise.”
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