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Fri 8 Jun 2012 11:45 AM

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UAE oil rig maker cuts 2012 forecasts again

London-listed Lamprell says in trading statement that it expects H1 loss of $15-20m

UAE oil rig maker cuts 2012 forecasts again
oil rig, oil field, oil, energy, GCC energy, GCC oil, black gold

Gulf-based oil rig maker Lamprell has cut its 2012 forecasts again, just three weeks after a profit warning that sliced its shares in half and cost the company a spot in London's FTSE 250 index of medium-sized companies.

Lamprell, which is based in the UAE, said in a trading statement it now expected a first-half loss of between $15-$20m.

That followed an update on May 16 in which the company had warned of a "small loss" in the first half because a shortage of key components for jackup rigs had resulted in delayed deliveries to customers and therefore delayed payments.

The bottlenecks are also driving up costs because the company is not able to make full use of resources, including personnel.

"Further to the company's recent trading update, the company has been undertaking further analysis and has revised its previous forecast," Lamprell said in a statement, without detailing what new information the analysis had uncovered.

The company said it still expected 2012 revenue would be about $1.1bn but saod its net profit margin would be about 2.5 percent - weaker than the already considerably downgraded 3.5 percent figure provided last month.

Lamprell's net profit margin in 2011 was 5.5 percent on revenue that more than doubled to $1.15bn. Its 2010 margin was 12.9 percent.

Thursday's statement was released five minutes after the London stock market closed, at which point shares in Lamprell were 6.6 percent higher at 108.7 pence.

The stock is still a long way short of the 300 pence level where it was trading in the run-up to May's profit warning.

Lamprell, which also has facilities in Saudi Arabia and Kuwait, is due to be relegated to the FTSE Small Caps index on June 18 following a quarterly review.

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