Lamprell has pushed back publishing its results as its board seeks alternative financing.
The company said its 2021 results would be delayed. The Middle East-based builder has faced financial headwinds, with its most recent set of results raising going concern worries.
In one sign of potential good news, Lamprell said it had received an early proposal for the sale of a majority stake in its oil and gas business. The company has begun preliminary discussions with an interested party, it said.
More broadly, Lamprell is working on a “financing strategy”, it said. This may involve additional equity, selling assets, financing for specific projects, facilities with Saudi banks and hybrid facilities.
Lamprell hopes to conclude the raising of cash in the second quarter.
In a February trading update, Lamprell said revenues in 2021 had reached $389 million. At the end of the year, Lamprell had $53mn of cash, of which $26mn was unrestricted.
The company struggled with various issues in 2021, including logistics woes stemming from COVID-19. Under the Omicron variant, in late 2021 and early 2022, it said around 1,200 of its workers were in quarantine.
Lamprell raised $30.1mn in late 2021 through a share placing. In its November results, the last set of audited numbers, the company had raised going concern issues.
Spending crunch
In 2022, it said, a number of major projects required “substantial” working capital, in particular its IMI rig works in Saudi Arabia. This would put “significant pressure on the balance sheet”, it said.
Lamprell raised the possibility that, should it be unable to secure the required financing, it would need to renegotiate work on the IMI rigs. This involves the construction of two rigs, with Lamprell noting that margins on this work were minimal. The IMI jack-up rigs contributed to Lamprell reporting negative EBITDA in the first half of 2021.
While Lamprell may be facing some challenges, it continues to win work. It recently won a contract to supply turbine jackets for the Moray West offshore wind farm, in Scotland.
The project has not reached a final investment decision (FID), but developer Ocean Winds has reserved space at Lamprell’s Hamriyah facility.
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