Lamprell Share Discussion Threads

[todismypal] 11/6/2014 07:25

I assume that after this mornings RNS relating to the rights issue - we as PIs will receive via our respective brokers a "corporate action" message asking us to take up the issue and advising the sum payable and the share entitlement. Not at all sure this will happen today though??

[skinny] 11/6/2014 07:05

Lamprell, a leading provider of specialist engineering services to the international oil & gas and renewable industry, announces that, pursuant to the Rights Issue announced on 16 May 2014, 81,363,469 New Ordinary Shares of 5 pence each will be admitted, nil paid, to listing on the premium listing segment of the Official List of the Financial Conduct Authority and will be admitted, nil paid, to trading on the London Stock Exchange's main market for listed securities at 8.00 a.m. today.

Unless otherwise defined herein, capitalised terms in this announcement shall have the meanings given to such terms in the prospectus relating to the Company and dated 16 May 2014 (the "Prospectus").

[deanowls] 11/6/2014 04:28

Hi GTA,

TBH i would be wary of investing on what I thought of individuals as there are so many factors surrounding them that I do not know of that could impact the work that they do, what does encourage me is what has been delivered over the previous 18 months.

The ship (or rig) has been steadied and we now have orders coming in (from decent sized companies), financing going forward and a team of people that can hopefully focus more of their time on building the business rather than dealing with legacy issues. This is what has encouraged me to remain a holder and also as of last week increase my holding.

I feel a lot more confident than I did two years ago.

[glavey] 11/6/2014 03:28

plunger2
28 May'14 - 21:52 - 13262

It's not a question of 'begrudgery', it's an issue of shareholders doing what they should be doing after years of passive disinterest. Perhaps you can now see that and may be encouraged to take a more active interest yourself.

Of course, you may personally have only invested in LAM since the recent lows, but surely you have been or will be caught out and suffered elsewhere. It's all part of the bigger picture.

[durby] 10/6/2014 21:36

Oil rig builder Lamprell sees shareholders revolt over pay again

[srpactive] 10/6/2014 21:17

Thank you deanowls.

[gta5] 10/6/2014 20:29

Thanks deanowls! much appreciated.

I think that it's always good to get the feeling from the people in charge, and would recommend anyone to attend to AGMs whenever possible. Unfortunately I was far away from Dubai on this occasion.
I take it that you got a positive impression and felt reassured that your investment is in the right hands? (a very subjective assessment of course, but still what it boils down to for us PI's)

GTA.

[deanowls] 10/6/2014 17:58

I'm sure it's pretty complex in how a deal is structured and not something that could be explained or understood (by me) after a couple of one liners but basically they have more options, there is also a part of the prospectus that say the bank will make best efforts to secure 200m of bonding. But derby is right it enables them to go after more deals, Mr Moffat also said that he doesn't want them to over stretch themselves which is prudent.

[durby] 10/6/2014 17:25

tipjunkie - Basically LAM will provide project financing (like a loan to the client). Opens up a whole new market for Lamprell. Banking facilities have been lined up to support this business model subject to successful conclusion of rights issue.

[tipjunkie] 10/6/2014 17:19

thanks deanowls

re point 2
our re-financing is to be used to bid for further rig build contracts which we will partially finance ? ie if we win a contract to build a new rig we will finance part of the project ourselves?

[deanowls] 10/6/2014 17:11

Thanks Tod, in ways well in, I've only met him at the last two Agms and I'm sure he would spend the time talking to any shareholder in the same way.

[todismypal] 10/6/2014 16:37

deanowls Great stuff and many thanks for your impressive contribution. I note you appear to be "well in" with Jim Moffat. Moffat does tend to exude great confidence in his company and I firmly believe it is well justified

[deanowls] 10/6/2014 16:11

Okay usual caveats apply and this is wrote from brief notes and memory so if I do get anything wrong I welcome any corrections, Jim Moffat has told me he does read the board. However should I legally get anything wrong I will be using the company secretary Alex Ridout for legal representation as he was the one who explained the specail resolutions in less than 30 words but more of that later.

In terms of attendance I was the only PI/II that attended other than directors that hold shares(Mr Lamprell or his better half were not present this year) I arrived early as the coffee and biscuits are free (shortbread fingers and fun size nestle offerings for those who are interested in these important details).

I was sat next to the new(ish as joined in the last year) CFO Jo Curin who introduced herself and had a brief chat before proceedings started at 10am.

John Kennedy the chairman have a brief summary of the last 16 months and the sterling work that has been done, 2x refinancings, ring fenced and supplied the problem contracts and a refreshed board, he passed his thanks to the management team that have put in the work to get the company where it is now.

The resolutions went through and the directors were reelected, a little bit funny as after every resolution everyone looked over to see if I agreed or disagreed by a show of hands, so I was the kid who looked like he really needed to pee holding my hand up in the air, mindst you it's the yearly who got the most votes competition from the shareholders for the directors who were scribbling down the numbers, director bingo if you will. Looking at the numbers it was a close run thing between Micheal Press(the eventual winner)and Ellis Armstrong, my votes are up for sale next year and could have swung it in Ellis's favour!

Then onto the specail resolutions, if anyone has read point 11 and understood it, kudos to you. The chairman spent about 10 minutes reading the legal jargon, I nodded at various points, I nodded off at various points, I held my eyes wide open at points, then after each point as normal the chairman says "any questions?", I raised my hand, in fact it may have been up still from the last point, "I have a question, what does it all mean", "well" said the chairman as people nodded around the room, "who wants to explain", people stopped nodding and averted panicked gazes from the chairman, they were now in the classroom, hoping they were not picked out to explain, "Alex can you explain", relief washed back over faces, eyes popped up, people sat back in there chairs, basically just allows the company to issue five percent of shares should they need quick finance, pretty standard stuff.

It quickly moved onto point 14, now I think it was at this point although it could possibly have been a bit earlier that the Chairman spent a few moments talking about renumeration and reward/recognition programmes, he acknowledged that there was more of a concern on how much directors are paid but made a valid point that the company had slipped from over 3 pounds to 60p at one point and down to the ftse 350, they had to go and get a team together to turn the company around and return to the ftse 150 and to do that you have to pay those rates (again these are not verbatim and some of it is how I have interpreted it).

I asked the question about if the directors were still in a closed period, it was explained that they have basically been on lock down for a considerable period of time due to known issues such as refinancing(s)that they knew there would be a quick resolution with the FSA and various other items. With the conclusion of this fundraising they will be in a open period other than usual closed periods due to scheduled announcements.

The vote changed here with no show of hands but a poll which was recorded on a form, there was then a stoppage of around 10 minutes whilst votes were counted. ( I don't know what has happened with this point after reading the Agm rns this afternoon, it passed me by).

The meeting then was formally closed.

Now for those of you still with me, I asked Jim if I could have 5 minutes of his time to ask some questions,

1) I asked whether Nexen would still look to put work towards lamprell with them now having Chinese owners, he replied that they are pushing for work in the North Sea, they have a cost advantage with their location, have an excellent safety and quality record and the work that they have done for Nexen has highlighted these points. He is looking to have six divisions and to grow the other businesses (generally around the lines of what has been said if anyone has watched any of the presentations).
2)I asked about the fundraising, Jim spoke about the options this gives the company in going after new business, apparently there were over 70 rigs ordered last year of which lamprell won 2, however they could only bid 7 due to financing requirements in the bid, this gives them the option to increase the numbers they bid for.
3)I asked about Landrigs, he explained there were interested party's that like their design but its a new design and the cost of building one to show the concept works has not been possible due to obvious circumstances over the last year.
4)the process of selling businesses not required continues.
5)I asked about the Ensco options and he confirmed it is six months from the announcement date which was rns'd on the 15th April.

Jim spoke very upbeat about the business and the future prospects, once again my comments are my version of events and how I have interpreted conversations, My apologises should they be wrong.

Nothing there really other than what you would know if you have done your research, sorry if it has wasted 15 minutes of your life!

[skinny] 10/6/2014 13:20

Lamprell, a leading provider of specialist engineering services to the international oil & gas and renewable industry, is pleased to announce that, at the Extraordinary General Meeting held earlier today at 10.00 a.m. (UK time)/1.00 p.m. (UAE time), the Resolution to approve the Rights Issue, details of which were set out in the notice of Extraordinary Meeting included in the prospectus relating to the Company and dated 16 May 2014 (the "Prospectus"), were duly passed without amendment on a show of hands by the requisite majority of Shareholders.

[tipjunkie] 10/6/2014 11:47

they have published a prospectus outlining details of the rights issue. Why would they discuss that at the agm when they can discuss how much they are all going to be paid?

[todismypal] 10/6/2014 11:26

deanowls I am certain a brief rundown of events will be much appreciated by all of us - was there any particular mention of the rights issue?

[durby] 10/6/2014 11:23

Look forward to your writeup deanowls.

Based on AGM results RNS, looks like Resolution 14 (Changes to Performance Share Plan) was not overwhelmingly supported - 80m for, 50m against.

"Resolution 14 is an ordinary resolution relating to proposed changes to the 2008 Performance Share Plan. In light of the vote at the AGM, our Remuneration Committee will re-engage with our shareholders on the Company's remuneration policy".

[deanowls] 10/6/2014 11:09

Tip junkie you should have introduced yourself? But being as I was the only PI there along with the directors and auditors Tod has hit the nail on the head.

Not really much to report but I will do a write up later when I have a spare half hour.

[tipjunkie] 10/6/2014 10:30

all they want to talk about is how much they can skim out of the company

[broadwood] 10/6/2014 10:16

An uneventful AGM then.

[srpactive] 10/6/2014 09:58

give over.

[brando69] 10/6/2014 09:58

Thanks.
Please advise when we reach 173.75

[srpactive] 10/6/2014 09:57

173.25- 174.5p, sp: 173.5p

[srpactive] 10/6/2014 09:47

Brando69

Here is the latest.

No change to spread, but share price now 173.25p.

Or were you being very sarcastic.

regards

active