Lamprell sees 2019 revenue at bottom end of guidance

Lamprell cautioned on Thursday that 2019 revenue was set to be at the bottom end of its guidance range, with major project flow in the oil and gas segment still slow.

The oil rig construction company said revenue for the year would come to $276m, subject to audit.

It said that while major project flow in oil and gas remains slow, it is encouraged by the signs of progress in the region, which it reckons will lead to a wider sector recovery. 2020 revenues are expected to come in between $350m and $450m.

Net cash has reduced to $41.5m due to the East Anglia One project settlement slipping into 2020 and Lamprell said its backlog currently stands at $466m compared to $441m as at 30 June. The bid pipeline remains in line with the first half of 2019 at $6.2bn.

The company also said it has secured an extension to its debt facility until April 2020 as it continues to negotiate a new facility, as well as considering other debt options, for future working capital requirements.

The Moray East project is progressing well, Lamprell said, with an "excellent" safety performance and within budget.

At 1240 GMT, the shares were down 2.1% at 33.40p.