ENGINEERING firm Lamprell saw shares fall by 15 per cent yesterday, after the company revealed that plummeting oil prices have impacted on projected revenue for 2015.
The company, which provides services to the onshore and offshore energy industry, now expects revenue to fall 10 per cent below previous expectations. Jim Moffat, chief executive at Lamprell, said: “With the recent slump in the oil price, winning work in 2015 is going to be a challenge as the industry adjusts to the new realities. We are entering this period in a position of relative strength with a strong balance sheet and a high backlog. We will continue to focus on maintaining our competitive position in the sector.”
In an update to the market, Lamprell said it had delivered a “robust operational and financial performance” during 2014, with six new rig orders won.
Lamprell’s net cash position at the end of December 2014 was around $275m (£182m), and the firm said this would strengthen further in the short term as a result of payments from a number of major projects.
The group stated that 2014 had started positively for its industry and for global equity capital markets, but added: “The final quarter of the year saw a significant deterioration in the energy market following the dramatic fall in oil prices.”