London-listed fabricator Lamprell said it is on track to hit its full-year targets after first-half earnings beat its expectations in a rise it put down to strong operational performance and improved margins.
The Sharjah-based company earned $77.7 million in net profit from continuing and discontinued operations in the first half, up from only $7.3 million in the equivalent period of 2013.
Revenues rose around 24% over the same timeframe from$506.6 million to $632.3 million, while Lamprell’s productivity improvement and cost-cutting programme helped send ebitda up to $53.4 million from $19.2 million.
Chief executive James Moffat said the yard’s “continued focus on operational excellence has resulted in a strong first half performance that has exceeded our expectations”.
“We are making good progress implementing our refreshed growth strategy based on our core markets and are already beginning to see the benefits of a stronger balance sheet,” he said.
“While we anticipate lower revenues in the second half of the year, we expect the outturn for the full year to be ahead of our expectations,” he added.
The company said its order book had risen to $1.2 billion after landing more than $900 million in new contracts since 1 January including multi-rig awards from Ensco and Shelf Drilling, as well as an award from Petrofac for modules to be deployed in Abu Dhabi.
Deliveries made over the period by the energy industry engineering player included a pair of jack-ups for Abu Dhabi’s National Drilling Company, a production and utilities quarters deck for Nexen Petroleum and a self-propelled jack-up vessel for Seajacks.
Lamprell warned it expected lower revenue levels in the second half due to timing of build cycles and reduced activity in onshore and offshore construction market.
It said that full-year targets were on track, adding that next year’s revenues were expected to be flat with 2014 as it had significantly fewer major completions for 2015.