UAE rig and engineering services firm Lamprell has won a fourth rig build contract from Seajacks, in a $120.9 million deal.
In repeat business prized by Lamprell after a run of bad news, Seajacks has asked the company to build a Gusto MSC NG 2500X self-elevating and self-propelled jack-up. The rig, to be called ‘Seajacks Hydra’, will be used for the installation and maintenance of oil and gas and wind turbine structures.
The rig will be built at Lamprell’s facility in Hamriyah and is due for delivery in 2014.
Lamprell’s chief executive Nigel McCue told investors: “I am delighted that Seajacks are continuing to work with Lamprell, following successful delivery of three vessels to them in the recent past. This reinforces our customer’s confidence in Lamprell’s ability to deliver major construction projects on time and on budget.”
The rig will complement the Kraken, Leviathan and Zaratan vessels previous built by Seajacks by Lamprell. Lamprell says Kraken and Leviathan were completed on time and on budget. Zaratan cost more to build than Lamprell anticipated.
Shares are up 10% on the news in early trading on the London Stock Exchange to 113p, though remain significantly below a level of around 300p before the company issued two profit warnings starting in May.
Lamprell is working to rebuild its credibility with investors after revealing significant deliverability and profit issues in its new build rig business in May, prompting a share sell-off and the appointment of John Kennedy as Chairman in place of Jonathan Silver.
The company expects to book a loss in the first half of 2012 and recover in the second half of the year.
