Oil rig-maker Lamprell said yesterday its full-year losses would be several times bigger than it previously forecast as a result of continuing difficulties with several projects.
The company, which has issued four profit warnings this year, said it now expected a loss of about £66million, compared with its earlier view of a deficit of between £7.5million and £10.6million.
Lamprell said it remained in discussions with its lenders to obtain a waiver of certain banking covenants before the year-end. Its bleaker forecast arose after a review conducted by an external accountancy and consultancy firm appointed by Lamprell to undertake an assessment on certain major projects and their impact on its financial position.
Last month, its chief executive stepped down together with two other senior managers, in the wake of its fourth profit warning.
Lamprell’s Caspian Sea jackup project is causing the biggest hit to the company to the tune of nearly £15.7million, with the company citing low labour productivity and restricted availability of equipment at a third-party facility as the reasons for the losses at this project.
Lamprell employs more than 12,000 people and has its primary operational bases in Hamriyah, Sharjah, and Jebel Ali, all in the United Arab Emirates.