Lamprell Share Discussion Threads

[cockneyrebel] 08/9/2014 14:37

Cheers, that sounds more like it - ta.

Got some more today Stamp Duty-Free :-)

CR

[speedsgh] 08/9/2014 13:42

Indeed LAM is IOM registered...



Registered office

Lamprell plc
Fort Anne
Douglas
Isle of Man
IM1 5PD

[plunger2] 07/9/2014 12:33

From memory I think the top company (Lamprell plc)is incorporated in IOM - no stamp duty there.

GLA

[cockneyrebel] 07/9/2014 12:25

Ah, right - that will be it I think - cheers.

Nice little 0.5% bonus I wasn't expecting but very welcome :-)

CR

[prophets and losses] 07/9/2014 12:07

CR - could it be because the company was incorporated in Dubai (founded in 1976)?

[cockneyrebel] 06/9/2014 16:37

Why's there no Stamp Duty on LAM?

It's not AIM.

Cheers

CR

[durby] 05/9/2014 21:05

Based on my amateur technical skills, resistance points are 179p, 186p and 206p. Happy to be corrected!

[sigala] 05/9/2014 19:35

Thanks for the comments everyone.

Muckshifter - very interesting to get your views, yes it does sound like there could be parallels to that situation you describe from your working life.

Plunger2, yes you're absolutely right, Lamprell is about much more than new build Jack Up rigs, and as you say it is some of the modular construction where Jim Moffat sees their greatest opportunity for North Sea clients. Their recently completed project for Nexen fits right into that mould.

Besides that there is all their rig refurb work particularly in the Gulf. They also have a sizeable land rig operation. New areas of work for the could include gas infrastructure and maybe even FPSO's eventually, but I have the impression that Mr Moffat is taking things one step at a time.

I think Lamprell were a great regional business that outgrew its then management and operational structure. It feels like it grew organically until its original systems could no longer cope.

What I feel Jim Moffatt is doing is taking this business to the next stage. He is establishing the quality of procedures and structure that a business of this scale really needs. I think Jim Moffat knows what "world class" looks like and he has been able to hold a mirror up to Lamprell so that all can see what they need to change if they want to succeed in the big league.

Also from the conference call I was impressed with the new CFO Jo Curin - she sounds like she knows what she's about. Looks like another good addition to the team.

Regards

[adp] 05/9/2014 16:40

A solid week for lammy

[skinny] 05/9/2014 16:02

If you squint and close one eye :-)

[scottishfield] 05/9/2014 15:56

The all-time chart [could be] a massive W ?

[durby] 05/9/2014 15:40

-- Delete ---

Just realised the link has already been posted.

[tipjunkie] 05/9/2014 15:34

Interest beginning to build here - one of my better bottom fishing picks

[cockneyrebel] 05/9/2014 15:22

Cheers for the link - 27min to 32min on the timeline where the FD talks about being ahead was pretty interesting imo.

CR

[cockneyrebel] 05/9/2014 12:15

Thanks GTA5.

CR

[gta5] 05/9/2014 12:08

Cheers,

GTA

[cockneyrebel] 05/9/2014 12:02

Do you have a link for that conference call Sigala? All I've worked from is the presentation for the interims on the website:



Cheers

CR

[durby] 05/9/2014 09:31

Regarding the chinese yards, here are some figures from an analyst report.

[plunger2] 05/9/2014 08:57

Excellent contributions gentlemen. 1st Class Hons for Sigala's neat summary.

On the actual business itself I would just add that JM points out that it's not all about rigs, it's the E+C business too where N.Sea business can be got. Like rigs it's all about modular construction; hence I think they have a few strings to their bow.
I really like their style under JM which always under promises and over delivers.
In general many current analysts are part of the "NOW" Generation - they want jam today and are cynical about jam tomorrow. Very sad but true. So these people will be slow, maybe very slow, to recognize what's going on. That should not bother LTIs here. As the saying goes: What are the 3 most important things in business? Management,management and management!

I remain decidedly optimistic.

DYOR

[srpactive] 05/9/2014 08:37

Good morning and good posts all.

muckshifter your posts have always been very good over the years
and I look forward to more in the future, keep posting.

regards

active

[muckshifter] 05/9/2014 08:02

Nice post yesterday sigala, I drew similar conclusions from listening to last year end's conference call, but expected a placing or rights issue, which duly came and provided the right buying opportunity.

The other thing I liked, based on my own working life, was that Jim Moffat seems to be following a similar path to one that I watched at close quarters many years ago.

I worked for a big civils contractor, which grew its road building division like a mushroom, got into very serious trouble ( verge of bankruptcy) changed management and then never looked back. The CEO methodically fixed each of the weaknesses in the company, one of which was the need for cautious forecasting of anticipated contract outcomes. As a result of that particular change, when I would ask my boss, a director who ended up running all the motorway projects, how the company was doing, he would reply year after year that profits were good and improving and that "next year's profit is already in the bag". The similarity is that you will have noticed in the latest conference call that a substantial portion of the increased profit this half came from release of provisions, which was how my boss knew that "next year etc".

As a result, while agreeing with your appraisal concerning completions in the near future, I suspect that there is very heavy provisioning related to the second Caspian rig, which may provide a nice bonus if all goes well.
Regards.

[deanowls] 05/9/2014 03:10

Great write up sigala, puts my thoughts into words.

[sigala] 04/9/2014 21:20

scottishfield,

you're welcome.

I am long Lamprell, so of course I see things in a positive light.

The uncertainty with an investment in Lamprell would be the wider rig market I guess. No one can predict what will happen with that.

But, IMHO Jim Moffat is doing everything right to get his own house in order, which is all you can do at the end of the day.

I like the fact that he has identified where Lamprell fit in the market and is going to play to their strengths. He's absolutely right to be targeting Tier 1 companies who value quality and safety.

It sounds as though the speculators will be flooding the market with cheap Chinese rigs bought on credit over the next few years, but who on earth would gamble their workers safety on them is beyond me.

Certainly the Tier 1 oil companies won't be touching them with a barge pole.

In time, no doubt some Chinese yards will develop the quality to join the credible competitors to Lamprell, but it will take a leap of confidence for an oil boss to go with them over a tried and trusted outfit.

AIMHO

[scottishfield] 04/9/2014 20:40

great post Sigala, thank you.

[sigala] 04/9/2014 20:18

ADP,

if you're looking at Lamprell for a long term investment then I would recommend listening to the conference calls with CEO Jim Moffat. You do get a good insight into what is happening at Lamprell and where they are looking to go.

My own view is that they have completed many of the stages of the recovery of the company.

Their high cost debts have been repaid, an important bonding facility has been established which will allow them to be far more competitive in bidding for new rigs as it gives them flexibility to offer clients a finance package which seems to required in today's market.

They have stabilised the operational side and are now developing improvements to their methods of work and rationalizing their procedures, all of which should enhance profitability.

They are building out their sales and marketing departments.

Jim Moffat has clearly identified Lamprell's niche in the market. What Lamprell offer is world class quality of construction and safety, but at a price that undercuts the European yards.

For customers in the North Sea, quality and safety are paramount given the legislation and culture. There are cheaper yards than Lamprell, like the new ones that have sprung up in China in the last few years, but whether the quality and safety is there yet is very doubtful. There are a lot of speculators having rigs built there at the moment.

But for North Sea and Western clients it's hard to imagine them gambling on a cheap chinese Jack Up.

Lamprell have all the quality of the best European yards, but at a price point well below them.

Jim Moffat is wisely not trying to enter the wild west style market of the cheap Chinese rigs, but is sticking to Lamprell's quality offering.

There will still be a bit of a hangover from LAM's Annus Horribilis next year. There is a gap in their work where they didn't win new rig builds and that means that H2 2014 and especially 2015 there will be fewer rigs completing. Their new awards are only just starting construction so won't feature for a while in their profit numbers.

So, I would say Lam is a long term story. Jim Moffat has a plan and it makes a lot of sense to me. I think an investment here is very much a case of buying into that plan.

If I was a customer for a new Jack Up, Jim Moffat would inspire confidence in having a good partner for the build. On the other hand, if I was boss of another yard then I wouldn't relish competing against him.

That's my tuppence worth anyway.

regards