Lamprell swings back to black despite dip in oil rig contracts

City A.M. Reporter
OIL RIG maker Lamprell returned to profit in the first half of 2013, making a quicker than expected recovery from problems over wind-turbine vessels which caused heavy losses in 2012.

Chief executive James Moffat told Reuters improvements had come faster than he had hoped since joining the Dubai-based contractor in March. Lamprell previously said it expected to return to profit in 2014.

Shares in the company closed up 5.7 per cent at 142.75p, with analysts and investors taking an optimistic view of the results.

“We believe that Lamprell’s back to basics strategy is paying off,” analysts at JP Morgan said in a note. “We are more confident that the last of the profit warnings is now behind us.”

But Lamprell warned revenue would be down next year, due to a blip in contract awards particularly in the North Sea.

Lamprell swung to a pre-tax profit of $10.1m (£6.5m) in the first half from a $50.8m loss in the same period last year, with revenue broadly flat at $521m.