Lamprell’s shares have crashed by over 40% as the company released its third negative trading statement in a row to investors.
“As a consequence of additional costs arising from the delayed deliveries of the Windcarrier 1 and 2 projects, the loss at the half year is expected to be approximately US$ 45 million,” said the company in a statement. “In addition, an extension to the timeframe for achieving direct overhead and corporate cost savings that were previously anticipated will impact the full year result.”
Only last month Lamprell forecast a first half loss of $15 million to $20 million.
The company now expects to book a loss of between $12 and $17 million for the full year 2012, a dramatic change from a statement in June in whcih the company said it would see a profit margin of 2.5% for the year. Revenue expectations remain fixed at $1.1 billion.
Shares on the London Stock Exchange are trading around 70p, from around 300p before a spate of profit warnings began in May.
Lamprell says it is approaching some of its banks for waivers in respect of the company’s lending covenants, which are thought to relate to its short term debt.
The news undermines the company’s attempts to draw a line under its run of bad news with the appointment of a new Chairman and the recent $121 million award of a fourth project from Seajacks.
The company says deliveries of equipment for the jackup drilling rigs that the Company is constructing are currently being received in accordance with revised delivery schedules. It’s next scheduled announcement is of interim results due on 28 August.
