Lamprell’s shares dropped 12% in London this morning after the rig builder said its full-year revenues would be below guidance.
Lamprell, which runs three rig building yards in the UAE, said revenues would likely fall within the range of $370-390million due to low levels of “walk-in work”.
The firm also said its revenues could fall by 10% next year, depending on the timing of potential contract awards.
Lamprell shares were down 12.09% to 87.25p in early trading.
The company provided the update in its interim results announcement, which showed a return to the black for the first half of 2017.
It recorded first-half, pre-tax profits of $1.16million, compared to a deficit of $4.2million last year.
First-half revenues totalled $159million, down from $451million.
During the period under review, Lamprell delivered two jack-up rigs to National Drilling Company and one to Shelf Drilling.
It also started work on the construction of 60 turbine foundations for ScottishPower Renewables’ East Anglia One offshore windfarm project.
Furthermore, Lamprell signed a joint venture agreement with Saudi Aramco, Bahri and Hyundai Heavy Industries for a major maritime yard development in Saudi Arabia.
Lamprell said “formation activities” for the joint venture company were well under way,
Lamprell chief executive Christopher McDonald said: “The business continues to deliver solid results broadly in line with our expectations despite the challenging market environment.
“Our balance sheet remains robust due to the combination of the efficiency measures we have taken over the past two years and our tight cost control measures.
“This places us in a good position to be cost competitive and maintain our discipline in bidding for new work.
“Lamprell continues to be well positioned with a strong balance sheet, and our strategy is designed to support near-term resilience and secure long-term sustainable growth.”