Lamprell Share Discussion Threads

[brando69] 27/5/2014 09:00

so we've had contracts awarded to the value of more than the market cap in the lat month...

[brando69] 27/5/2014 08:59

one of those a week will do nicely

[tipjunkie] 27/5/2014 07:16

super duper

[deanowls] 27/5/2014 07:14

Excellant news

[skinny] 27/5/2014 07:09

Lamprell (ticker: LAM), a leading provider of diversified engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, is pleased to announce that it has received a new contract award from a subsidiary of Shelf Drilling, Ltd. ("Shelf Drilling"), for the construction and delivery of two high specification, LeTourneau-designed, self-elevating Mobile Offshore Drilling Platforms of a Super 116E (Enhanced) Class.

The two jackup rigs, designed through collaboration between engineering and operations personnel from Shelf Drilling, Shelf Drilling's customer and Lamprell, will be capable of operating in water depths of up to 350 feet and will be used in constructing wells with maximum drilling depth of 30,000 feet. The rigs will feature fit-for-purpose offshore drilling technology, as well as accommodation for up to 160 people.

Lamprell will fabricate both jackup rigs in its Hamriyah yard, located in the United Arab Emirates, and they will be among the first to benefit from the productivity improvements that Lamprell is in the process of implementing. Lamprell is scheduled to deliver the first rig in Q3 2016, while the second rig is expected to be delivered in Q2 2017. The rigs are being constructed for operations in South East Asia. This new contract is valued at more than US$ 370 million.

[plunger2] 21/5/2014 17:16

Once they bag a modicum of "imminent" orders you could see a turnover of $1100m for 2015.
Now historically the old (sleepy) management did margins of c. 8%.
So $1100 at 8% = $88m or say £52m or EPS (based on 340m shares) of 15p+.

Of course with all the efficiencies and lower interest costs, it may be possible to beat 8%. Going forward Moffat obviously sees potential for turnover well UP on $1100m.

So the future could be bright for LAM; heroic assumptions are not required. It comes down to landing the contracts. But with a seriously ramped up sales effort this should be possible. JM clearly believes it is.

Were all this to happen a re-rating of LAM should occur and a P/E of 10 would be well too low; maybe not imminently, but you never know.

JMHO DYOR

[durby] 21/5/2014 10:18

Well based on the Ops update last week, "We are in advanced discussions with a number of prospective clients for new projects, which we expect to convert into booked work in the IMMINENT FUTURE."

[skinny] 21/5/2014 08:25

Liberum Capital Hold 148.00 148.00 150.00 155.00 Reiterates

[hvs] 20/5/2014 14:37

Look its going higher.

Easy peasy.

Get the money in and its easy.

Lol !!!!!!

[todismypal] 20/5/2014 13:44

147p and that after the announcement of a rights issue. It is clear that this company is being viewed very positively by many - both PIs and Institutions. For what it's worth everyone offered shares on a 5 for 16 basis at a price of 88p should take up the offer. Personally I am buying more before 11th June to up my holding and thereby qualify for a few extra at 88p. I am waiting for a response from a Mr G Osborne to my request for an advance on my heating allowance for 2015,2016 and 2017 - I am however not optimistic

[mad foetus] 19/5/2014 12:06

Tod,
I've not looked into it in detail but that is my understanding - that you can buy up to 11 June and still qualify. The price after that should drop back to the 130p level to reflect the extra shares in issue.

[todismypal] 19/5/2014 12:00

mf When you refer to the record date is this the same as the ex-entitlement date ie the 11thJune according to Bank of Scotland share dealing. I assume that we can buy at the market rate up till then and these additional shares will qualify on a 5 for16 basis. I think a decent purchase (assuming I am correct) up to that date will be well rewarded

[brando69] 19/5/2014 11:58

Lamprell is bidding for a major onshore liquefaction project for an undisclosed party. "The LNG project is the first one [of its type] that we've bid. It's an international client. I just think there's an opportunity for us to broaden our offering and hence increase the potential bid pipeline and give much more security to our revenues and profitability going forward if there is a downturn in any of our current core product lines."

"Modular solutions [are] what we build. Ultimately drilling rigs are a modular solution, as are living quarters, or oil and gas production units. Whether it's an FPSO, or LNG plant, fundamentally these things are still steel structures that are full of piping, have some electrical and instrumentation and equipment and some architectural [elements]. To the uninitiated, they all look highly similar," he said.

"There is going to be a downturn some time in all major markets and product lines. They are cyclical in nature. If you have six or seven product offerings and you can competitively participate in all of these, you get a much steadier, much more predictable business. I am trying to move up to Tier 1 clients. We are trying to diversify so that our results are not affected to the same extent if there is a dip or peak in a particular business stream."

[brando69] 19/5/2014 11:57

Didn't see this posted before:

Jack-up rig builder Lamprell seeks to diversify
James Moffat, ceo of Lamprell
James Moffat, ceo of Lamprell
Peter Shaw-Smith By Peter Shaw-Smith from Dubai

The Middle East's biggest jack-up rig manufacturer is looking to diversify to shield it from the cyclicality of the global upstream oil and gas industry, a senior official told Seatrade Global last week in Dubai.

"I'd like to get back into floating production and storage offloading units (FPSOs)," said Jim Moffat, ceo of Lamprell. "We built parts of 18 FPSOs before. I believe the FPSO business is coming back. If it does, I'd like to get back into that business."

Data cited in industry reports show that the number of FPSOs in operation around the world increased from 83 in 2003 to 153 in 2013. "FPSOs will remain active and in demand for offshore exploration of oil and gas, in particular, the offshore areas of Brazil, West Africa and North Sea," said International Maritime Associates in a recent report.

Moffat says that Lamprell will consider bidding for any modular structure. "There are also a number of upstream plants that are modularised. Last year, Lamprell built 15 onshore modules for the Laggan Tormore project in the Shetlands, for Petrofac. The ultimate client was Total. In the case of the new product lines we would like to get into, we are going to have to test the market. We don't win every bid but we are going to bid seriously," he said.

Lamprell said at the end of December that its bid pipeline rose fractionally to $4.7bn, up from $4.6bn at the end of June. "The $4.7bn [order pipeline] is conventional bidding. That's what we would bid conventionally, so to speak," he said.

Lamprell is bidding for a major onshore liquefaction project for an undisclosed party. "The LNG project is the first one [of its type] that we've bid. It's an international client. I just think there's an opportunity for us to broaden our offering and hence increase the potential bid pipeline and give much more security to our revenues and profitability going forward if there is a downturn in any of our current core product lines."

"Modular solutions [are] what we build. Ultimately drilling rigs are a modular solution, as are living quarters, or oil and gas production units. Whether it's an FPSO, or LNG plant, fundamentally these things are still steel structures that are full of piping, have some electrical and instrumentation and equipment and some architectural [elements]. To the uninitiated, they all look highly similar," he said.

"There is going to be a downturn some time in all major markets and product lines. They are cyclical in nature. If you have six or seven product offerings and you can competitively participate in all of these, you get a much steadier, much more predictable business. I am trying to move up to Tier 1 clients. We are trying to diversify so that our results are not affected to the same extent if there is a dip or peak in a particular business stream."

Although the idea of increased rig intensity is the bane of the upstream industry as both onshore and offshore oil becomes deeper and more distant, it is a boon for Lamprell. "If [that's] true, it's an opportunity. If people have to drill more wells to get the same amount of oil, you need more rigs to do it. We obviously build and refurbish rigs. Therefore, greater demand for rigs is good for business."

Lamprell claims to have 60 percent of the regional rig market. Profitable in all of the past five years except 2012, it saw revenues of $1.09bn last year and returned to the black with income of $36.4m.

Now 15 months with the company, Moffat's arrival has had a salutary effect. "I am very pleased with our progress in the year. We've turned back into profitability, we've changed the management team a little bit, we've brought in some fresh faces. I am very pleased with the resulting team. We are performing on all of our projects very well. They are all on budget. Our safety is world-class, our quality is world-class. Our bid pipeline is big. Right now, I believe we have a very solid future."

[mad foetus] 19/5/2014 11:49

I am seriously thinking of buying much more before the record date. I think this could easily move quickly once the fund raising is complete.

[brando69] 19/5/2014 11:31

I smell more contracts in the wind

[brando69] 19/5/2014 11:30

James Moffat, Chief Executive Officer for the Lamprell Group, said the delivery of this latest offshore structure highlights Lamprell's growing reputation in the newbuild offshore construction market and confirms its position as one of the few yards in the MENA region that has both the expertise and the capability to build large scale complex North Sea projects.

[brando69] 19/5/2014 11:29

hxxp://www.arabiansupplychain.com/article-9861-lamprell-and-dp-world-celebrate-world-record/

Lamprell and DP World celebrate World Record
by ASC Staff on May 18, 2014

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Lamprell has completed the construction of the biggest offshore platform ever built in Jebel Ali.

The occasion was celebrated over the weekend, with DP World congratulating its customer Lamprell for its incredible achievement.
The difficult task of moving the massive platform has earned Lamprell a Guinness World Record.

Guinness World Records adjudicator Samer Khallouf presented Lamprell with the official Guinness World Records certificate at an event held in Dubai confirming that the offshore platform was the 'Heaviest load moved by self-propelled modular trailers (SPMT)', measured at 13,191.98 tonnes.

At the event, Abdulla Bin Damithan, Commercial Director, DP World, UAE Region, presented a commemorative gift to Lamprell CEO Jim Moffat to mark the occasion.

Lamprell built the Production, Utilities and Quarters (PUQ) deck at its yard in Jebel Ali and it was delivered on time and on budget, after 10 million man-hours without a lost time incident, to Nexen Petroleum for use in the North Sea.



Moving the platform from Lamprell's yard in the free zone to Jebel Ali harbour was a major challenge with the combined weight of the platform and the SPMT reaching more than 15,500 tonnes, and with the PUQ deck measuring more than 98 metres by 46 metres with a height of close to 60 metres.

Abdulla Bin Damithan, Commercial Director, DP World, UAE Region, said the terminal operator is proud that this record-breaking platform has been built in the UAE.

''This successful project is the largest offshore platform to be constructed by Lamprell, and we are delighted to have assisted with port and marine side services. DP World has invested heavily in the infrastructure of our terminals to make sure we always meet the needs of our customers. One of our focus areas is heavy-lift shipments. Congratulations to Lamprell for this world record achievement," Bin Damithan said.

James Moffat, Chief Executive Officer for the Lamprell Group, said the delivery of this latest offshore structure highlights Lamprell's growing reputation in the newbuild offshore construction market and confirms its position as one of the few yards in the MENA region that has both the expertise and the capability to build large scale complex North Sea projects.

''Delivery to such high standards would not have been possible without the close teamwork between the Lamprell, Nexen and DP World. I would like to thank Abdulla Bin Damithan and his DP World, UAE Region team for their port and marine side services support which ensured we could deliver this project successfully," Moffat said.

[todismypal] 19/5/2014 10:23

Plunger2 25th June at the latest. Many thanks

[plunger2] 19/5/2014 09:30

Tod the Timetable for the Rights is on p 38 of the Prospectus; this is usually the most important page to visit! From looking at same it seems that 11 am on 25 June is latest date; if in doubt check with the company or your broker.

I read a lot of LAM stuff at w/e. The IMS was first class. Both the Times and the FT were positive; so I don't think it's an illusion that LAM may, just may, attract some new interest. The Rights changes everything. Opens up: more business - lower costs - lower interest - return to divis (sooner)etc etc. What's not to like?

I think a price in the 140s is well too low; but I suppose I'm biased!!

JMHO DYOR

[todismypal] 19/5/2014 08:32

Clearly the rights issue has been well received. I attempted to read the prospectus but it runs to dozens of pages - so I gave up. Question - when do we have to pay for the new shares?

[srpactive] 19/5/2014 07:39

Positive write up in the times.

I do not have a link or the article.

dyor

regards

active

[plunger2] 16/5/2014 17:17

per LAM website - Prospectus:

"Existing Ordinary Shares marked ''ex rights'' by the London
Stock Exchange ................................. 8.00 a.m. on 11 June"

[davr0s] 16/5/2014 16:06

Surely we can't finish blue can we? Feared the price was going to get a bit of a kicking today so pretty good outcome. So at what point might we expect the price to reflect the additional shares - given we know it's coming I assumed it was going to be reflected in the price already?