Lamprell Share Discussion Threads

[skinny] 29/5/2014 12:26

Liberum Capital Hold 157.00 157.75 155.00 162.00 Reiterates

[glavey] 29/5/2014 04:12

'it strikes me that these 'exceptional awards' and other enhancements are premature.'

"director buys?" - P150 of prospectus

[deanowls] 29/5/2014 03:38

Glavey,

The directors have been unable to buy shares over the period of the last annual report, there are from memory I believe some options that are due to the FD for joining and there were some awards that were due to some incoming directors from 18 months ago there is a note in the accounts giving more detail, however if you look at what the new management have achieved since "the sh1t hit the fan" in terms of financing, getting to grips with the contracts and getting them out of the door, new orders coming in I think they deserve rewarding if they can continue to build on what they have achieved, as long as the targets are strectehed and there is more detail in the announcements from the company then that is okay with me.

Going forward there are imho positives to come, the new orders coming in,new avenues being explored, cost savings going forward, director buys?, in the prospectus for the fundraising they are getting financing for possibly upto 450m (from memory)is this for financing rig orders for customers?

[plunger2] 28/5/2014 21:52

As you know better than I (probably) LAM is a turnaround stock. The disastrous previous management and Board are gone; they damn near wrecked the company. But I fail to see why the sins of those past should be visited on the present.

I simply want the best management LAM can get and if they get some share incentives it's fine by me. We're all here to make a few quid. I would not wish for good people to bypass LAM as an employer just because their predecessors screwed the company.

In a turnaround you need great new management and PATIENCE - even I can be short of the latter. But "begrudgery" will get you exactly nowhere. The Lamprell family must think so too and they're putting in yet more cash.

JMHO

[glavey] 28/5/2014 19:54

Not so long ago when the share price was around 300p shareholders were shafted by the management failing to keep the market informed of disasterous mistakes leading to major cost overruns etc. and the share price collapsed to under 100p. A couple of insiders slotted their shares just before the sh1t hit the fan and, lucky for them, got away with it in the ensuing investigation. The company, however, did not and was fined - that is to say the shareholders of the company were fined for the behaviour of the board. In the upcoming AGM the company presents a special resolution in respect of the Performance Share Plan to a) grant one-off exceptional awards, b) increase future grant limits. The share price is now around 150p, so has recovered over a couple of years to around half of what it was (less if one factors in the original growth expected). The 'recovery' is still on going and that includes the rights issue and recent orders, the benefit of which is likely to be still at least a couple of years away, perhaps more. In other words one still needs to take a long term view with LAM. With all that in mind it strikes me that these 'exceptional awards' and other enhancements are premature. If the CEO and CFO (and any other insiders for that matter) see LAM as such a good bet, I'd like to see them buy in the market, rather like the rest of us.

[brando69] 28/5/2014 12:37

still has a couple of psychological resistance points on the chart short term. think we hit one of them this morning.

[tipjunkie] 28/5/2014 12:26

it's due a breakout, that's for sure

[brando69] 28/5/2014 11:58

nice, should see the blue rinse brigade in middle england hopping on board for the ride...

[wynmck] 28/5/2014 11:40

from todays Mail
Market report..
..."Industry guru Malcolm Graham Wood at Hydrocarbon Capital said..
"Shelf is a new client for Lamprell and accordingly another step forward in a market place I expect to increase significantly.The company offers outstanding opportunities,particularly following recent funding activity.
The game has significantly changed for the better in terms of addressable market and margin growth and Lamprell will now compete much more effectively in a broader market with Tier 1 clients in their sights.
The shares are a strong Buy."

[brando69] 28/5/2014 09:50

There is only no discount to the current price if the dilution ex rights shunts the share price down by five sixteenths and even if it does the rise pre rights offers a chance to buy then at a discount

[mad foetus] 28/5/2014 09:46

BrandoThe point I was making is that it makes no difference if the price of the issue is 50p and you get 1 share for every 4 you own or if it is £1 and you get 1 for 2. There is no discount as such - the company is just getting funds off existing holders because, in this case, it seems to be doing very well.

[brando69] 28/5/2014 08:30

mad foetus

i beg to differ.

last year, i took up my rights in TCG which were I think offered at around 75p, when the actual share price was around 130. The share price dipped to 120 and then very quickly moved upwards, eventually hitting 189.

That made the rights shares a big bargain in my book. Doubled my money on them in short order.

[mad foetus] 27/5/2014 17:50

The discount is illusory as the rights are issued on a preemptive basis. If you owned 10,000th of the company before the rights issue you will own 10,000th of a bigger company after. The price of the rights issue makes no difference to that fact.

[brando69] 27/5/2014 17:25

the only significant bout of selling i think might be those selling the shares to buy the rights.

[mach100] 27/5/2014 17:15

Will this go to 143p based on today's price after the rights issue? Looks like we have done ok then. I really thought the price would be hammered on such a high discount. Surely the mm's will find it hard to get stock now as many will hold on for the right's issue before selling.

[broadwood] 27/5/2014 16:04

Skinny - thanks.

That rights issue should be very popular.

[tipjunkie] 27/5/2014 14:57

there'll be a mad scramble for them that's for sure!

[skinny] 27/5/2014 14:57

From the recent RNS :-

"The Prospectus, which contains a notice convening a General Meeting to be held at 1.00 p.m. (UAE time) on 10 June 2014, will be posted to Shareholders as soon as practicable."

[broadwood] 27/5/2014 14:46

Have we got relevant dates for the rights issue yet? Or waiting on the EGM.

[broadwood] 27/5/2014 14:46

Lamprell has won a new contract award from a subsidiary of 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 jack-up 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$370m. Chief executive James Moffat said: "We are delighted to be announcing this project win from Shelf Drilling for the construction of two new build jack-up rigs, particularly as Shelf Drilling is a new client for the Group. This is also our second multiple-rig contract award with a major international drilling contractor in the space of a month, demonstrating that the Group's strong project execution in its core markets is being recognised. It also reinforces Lamprell's position as a leading fabricator for jack-up rigs and our highly attractive proposition to clients. "We look forward to working with Shelf Drilling in support of their new build project -

[plunger2] 27/5/2014 14:28

Yes - worth noting that Chevron is the ultimate client here.
Moffat IS delivering.



We're still too cheap at 154/155p.

At 155p today, if you take up the rights at 88p, your overall average falls to 139p.
If you believe, as I speculated above, that LAM could do eps of 15p in 2015 - then the P/E of just over 9 would be too low. This is a big recovery story, all other things being equal. Quite a bit to run, me hopes!

JMHO DYOR

[durby] 27/5/2014 14:20

hxxp://www.shelfdrilling.com/news/shelf-drilling-ltd-announces-five-year-contracts-for-two-newbuild-jackup-rigs/

The two jackup rigs, designed through collaboration between Chevron Thailand, Lamprell Plc, and Shelf Drilling engineering and operations personnel, will be capable of operating in water depths of up to 350 feet and for use in constructing wells with maximum drilling depth of 30,000 feet. The rigs will feature specifically fit-for-purpose offshore drilling technology, and accommodation for 160 persons.

[brando69] 27/5/2014 12:18

the rise and news makes the rights issue an ever more enticing proposition...

[broadwood] 27/5/2014 10:22

Engineering group Lamprell announced it has signed a contract with a subsidiary of Shelf Drilling to construct two offshore drilling platforms for 370m dollars.

The FTSE small cap-listed group will deliver two high specification platforms with engineering and operations workers from Shelf Drilling and Shelf Drilling's customer.

The company will fabricate both rigs in its Hamriyah yard, located in the United Arab Emirates, and anticipates delivering its first rig in the third quarter of 2016, while the second rig is expected to be delivered in the second quarter of 2017.

The rigs 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 are being constructed for operations in South East Asia.

Chief Executive Officer James Moffat said: "We are delighted to be announcing this project win from Shelf Drilling for the construction of two new build jackup rigs, particularly as Shelf Drilling is a new client for the group.

"This is also our second multiple-rig contract award with a major international drilling contractor in the space of a month, demonstrating that the group's strong project execution in its core markets is being recognised."

Lamprell was trading nearly 4% higher at 150.57p in early trading on Tuesday.

[durby] 27/5/2014 10:01

"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." (Ops Update from the other week).

So we should expect further contract RNS in the future - hopefully - if things go according to plan!