Lamprell Share Discussion Threads

[plunger2] 08/4/2015 15:04

Welcome back Tod. The story is still very good here. Price of oil is the only bother - but that could change. If it does we should go well. Here's hoping!

JMHO

[todismypal] 07/4/2015 20:14

Bought back in at 114p after being out for a few months. Glad I did after todays rise. At 120p this has to be a decent punt. See the old familiar posters are still on the go here - and glad indeed they are.

[plunger2] 02/4/2015 14:19

Well whoever is hitting the sell today it's not an efficient way to do things.
The time to sell LAM, in any sort of volume, is after a newsworthy RNS when there may be some action.
Today's sort of selling plays straight into MMs hands; I have little doubt that low volumes under the 120p level are gratefully mopped up for onward sales to bigger investors.

JMHO

[junglee] 02/4/2015 11:16

looks like a bear raid in motion --- there are persistent 1994 and 1826 trades being put at every price interval on the offer side on Level 2. I should imagine as soon as these two are finished/disappear from level 2, price should bounce back as quickly. DYOR.

[aimingupward2] 01/4/2015 14:55

This is the article deanowls was referring to :

"I covered Lamprell’s figures last week but since then I have been lucky enough to have a meeting with Jim Moffat, CEO and finance man Tony Wright. Readers know that I am very positive about Lamprell despite the ‘challenging market environment’ that they are operating in and that the area in which they exist is fundamentally strong and resilient. The company last week ticked pretty much all the boxes, underlying profits, EBITDA and margins all grew, the balance sheet has been strengthened by the rights issue and facilities are in place that mean that for the first time Lamprell can offer fully competitive pitching to Tier 1 clients. The order book at the year end was $1.2bn, covered 80% for 2015 and already 35% for 2016 which is most comforting. The pipeline remains strong, up half a billion dollars at $5.2bn and I am most impressed with how the sales force works, a combination of concentrating on the best and most profitable contracts which provide higher margin work and maintaining long term relationships.

Taking one area of expertise such as the jackup market, one can see the long term fundamentals of the new build and refurbishment market remaining strong, by 2017 over 30% of the global jackup fleet will be over 35 years old thus creating even more opportunities for the company. Not content with the jackup market, one of the biggest strengths of Lamprell is its potential ability to create even more work by refining its fabrication business streams adding new products with very little risk. Apart from what it does now in refurb and new build as well as land rigs, topsides and modules it should be able to add work on FPSO’s, LNG modules and in the renewables market as well as that sector continues to grow. The facilities have been made significantly more efficient and although the yards are not all full they can take more than before and there are local opportunities to expand should, say, the FPSO dream comes off.

Lamprell operates from the Middle East but as Jim Moffat is quick to point out, markets for their products could be anywhere around the world. Indeed the lucrative markets of East Africa are genuinely on their doorstep and as per Statoil above, discoveries continue to be made, to monetise all that gas there are plans for 10 LNG trains in Mozambique and 15 in Tanzania which at $5bn each is decent business by any standards. In addition and also a potentially as above another place on the doorstep is Iran and should there be lifting of sanctions there it could become a very big market for Lamprell. Having said all that one must keep ones feet on the ground, Lamprell will do exceedingly well just by efficiently dealing with its own market, well summed up by the company describing a new rig as having been ‘built in the UAE, for the UAE, operated in the UAE.

As I have mentioned there are many exciting opportunities for Lamprell, the recent financing means that they can compete on a level playing field with any competitor and now have orders from new clients such as Ensco and Shelf to prove it. I have real confidence that the strike rate for winning those pitches is getting better all the time meaning that although the market is tough, Lamprell is in a remarkably strong place, if you have not looked at this stock you should do."

[hedgehog 100] 01/4/2015 13:48

From the "INVESTORS CHRONICLE", 27 March 2015:

"Lamprell in rehabilitation

... Activity was solid in the new-build business, while rig refurbishment activity gained momentum through the second half of the year. The company completed a record number of big-ticket projects, and - crucially - wasn't forced to utilise contingency funds due to improvement in operational performance. This had a positive impact on gross margins, offsetting weakness in the onshore and offshore construction business. Here, revenues are coming under pressure as capital budgets in the oil and gas industry are reigned in.

At the year-end, Lamprell's order book stood at $1.2bn, a one-third increase year on year. With a bid pipeline standing at $5.2bn, and 83 per cent visibility for 2015, prospects seem pretty bright. But management's ability to convert the bid pipeline into firm orders will invariably be affected if oil prices remain in the doldrums.

... Lamprell has reinforced its balance sheet and cut troublesome legacy projects from its roster. The shares now trade at an undemanding 11 times forward earnings, but with the full effect of capital budget cuts yet to be seen, we remain cautious. MR

Hold

Ord Price: 124.5p Market Value: £426m ..."

[plunger2] 31/3/2015 22:50

Continue watching - very very closely!

[supernumerary] 30/3/2015 16:53

Mot currently a holder, but watching. Now a very good company but facing some serious headwinds:



BP Terminates Seadrill Partners Rig Contract

OSLO--Seadrill Partners LLC said Monday that BP PLC (BP) had terminated a rig contract, which would reduce the rig company's order backlog by $160 million, in another sign that lower oil prices are hurting oil-field services companies.

The firm, which is controlled by Oslo-listed oil drilling contractor Seadrill Ltd. (SDRL), said the termination of the West Sirius rig contract would take effect after the current well was completed, likely in early May. Another contract, for the West Capricorn rig, was extended by two years to July 2019, it said.

Seadrill Partners--formed by Seadrill Ltd to own, operate and acquire offshore drilling rigs--said it will receive payments for the remaining West Sirius term, expiring in July 2017, and didn't expect a material impact on its cash flow position.

The cold stacking of the 2008-built West Sirius rig "is another clear testament to the current weakness of the drilling market," said Sparebank1 Markets analyst Robert A. Jensen in a note, keeping a sell rating and 65 kroner target price on the Seadrill stock. "We expect further negative news-flow such as this in coming months and maintain our negative view on the stock and the sector overall."

Seadrill shares traded 1.3% higher at 77.70 kroner.

[mad foetus] 23/3/2015 12:54

“2014 was a year of outstanding performance. Record financial results were driven by strong project execution and cost savings, and some exceptional factors such as the favourable phasing of the construction cycles,” said John Kennedy, Non-Executive Chairman for Lamprell.

One of those projects was wind farm installation vessel Seajacks Hydra delivered in June 2014.

It is Seajacks’ fourth vessel, a modified version of Gusto MSC’s NG 2500 X design fully adaptable for work in both the Oil and Gas and the Offshore Wind industries.

hxxps://www.offshorewind.biz/2015/03/19/lamprell-record-breaking-year/

Of course a buoyant oil sector would offer more opportunities, but LAM is active in alternatives and it may be an area where they can pick up some slack.

[dlku] 23/3/2015 12:49

order book must be shrinking

[poleaxe] 22/3/2015 16:41

I am more annoyed i sold up Friday morning.

[tipjunkie] 22/3/2015 15:55

fair points plunger
we'll be up tomorrow anyhow
I'm still annoyed I didn't top slice at 170 that's all!

[plunger2] 22/3/2015 12:16

Indeed not. Although we know she was paid off.
We also know that her presentation performances were "fluffy".
We also know that a direct subordinate was immediately made DCFO.
And we know that no CFO has yet appeared.
And we know that the DCFO is actually the interim CFO.
And we know that the DCFO gave a quite convincing and excellent presentation on Thursday.
Far be it from me to suggest anything but maybe she wasn't needed?

JMHO DYOR

[tipjunkie] 22/3/2015 10:31

Its never been clarified why the CFO cleared out after little more than a year


Lamprell (ticker: LAM), a leading provider of fabrication, engineering and contracting services to the onshore and offshore oil & gas and renewable energy industries, announces that Joanne Curin, Chief Financial Officer, has decided to stand down from the Board of Lamprell plc and as Chief Financial Officer. Jo has guided the business through a key period and will facilitate the hand-over process over the coming month. A search to find a successor will start immediately and an announcement will be made in due course. During the search period, Tony Wright (currently Vice President Finance) has been appointed to the role of Deputy Chief Financial Officer.

[cc2014] 22/3/2015 09:54

Well it all gets interesting from here. Chart looks good. Fundamentals look good. Management have turned it round.

Currently ranked 451 on the FTSE. I must do some research and find out how much it needs to rise to hit FTSE350

[cockneyrebel] 20/3/2015 14:38

Chart looks to have put in a bottom here imo - as directors buy.

Only the crumby reputation of the previous board that caused these to be this weak in the first place imo - a totally different management now imo.

All imo

CR

[srpactive] 19/3/2015 15:51

plunger2

Very good post, also if we break through 117p to the upside
we are heading back to 130p very quickly.

dyor

regards

active

[plunger2] 19/3/2015 11:06

Excellent results and slickest presentation so far.

Cash p/s 54p
Net Assets p/s 132p
NTA p/s 92p

Guidance affirmed. Pipeline bigger. KPIs excellent. Marketing effort upgraded. Their ME markets likely to be more resilient.
History of under-promising/over-delivering. Lots of share buying by management.
A formerly sleepy outfits has become slick, efficient and nimble.

Only negs: no divi still but typically cautious attitude. POO still dodgy.

With POO back through $80 LAM could be £2.
With POO back through $80 + re-instated divi LAM could be £2.50.

Pays yer money (or not!) takes yer choice.

DYOR

[mad foetus] 19/3/2015 09:46

The management team have done a fantastic job imo over the last 2 years, in the face of considerable headwinds. I have no doubt if the price of oil hadn't collapsed the share price would be north of 250p. There is not much more to say other than well done, they have played the hand they have been dealt brilliantly, the question for investors is whether it is a sector they want to be in.

[owenski] 19/3/2015 09:45

That refers to the year just gone, the market is forward looking and the coming year is unlikely to repeat according to the outlook statement.

That might also be important to others than yourself

Regards

[srpactive] 19/3/2015 09:41

Maybe, record profits and cash is important to
others rather than yourself.

High proportion of work booked also.