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I’m at a very early stage in analysing this company, but it shows some promise. At the end of June it had US$138m of cash and a (crude) net current asset value of US$346m. Its current market capitalisation is only £250m.
It also had over US$90m in “buildings and infrastructure”.
What it does
Lamprell (LSE:LAM), while listed on the London Stock Exchange and dominated by westerners, is based in the United Arab Emirates (“UAE”). It fabricates complex structures such as oil and gas platforms. A particular specialty seems to be a drilling platform on four legs, each of which can be pulled up so that it floats and can then be towed to a different location by tugs, called “jackup rigs”.
It also fabricates and engineers for the renewable energy industry, and makes multi-purpose liftboats (self-propelled, self-elevating vessel with a relatively large open deck capable of carrying equipment and supplies in support of various offshore mineral exploration and production or offshore construction activities), land rigs, and rig refurbishment projects.
Employing over 9,000 people, with an emphasis on highly skilled engineers, it is based at four fabrication yards located in in the UAE, and facilities in Saudi Arabia. The capability, reputation and knowledge of the team, together with ownership of fabrication space and deep water quayside berths, covering over 1,000,000m2 with 2km of quayside, might give some competitive advantage in a complex area of engineering.
Recent suffering
Obviously the low oil……….To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1
