UAE-based offshore engineering and construction services provider Lamprell has decided to delay the publishing of its annual results while it is working to progress its funding and strategic options. Meanwhile, the contractor is also in talks for the sale of a stake in its oil & gas business.
Lamprell revealed on Tuesday that the publication of results for the year ended 31 December 2021 will be delayed in order for the board to continue progressing potential financing and strategic options.
Separately, the company has received an early-stage proposal for a potential sale of a majority stake in its Oil & Gas business and has entered preliminary discussions with an interested party. No further details have been revealed about the offer.
As a reminder, Lamprell reorganised into three new business units – Renewables, Digital, and Oil & Gas – in January 2021 as part of its efforts to focus on energy transition. The Oil & Gas business comprises its traditional activities in rig fabrication, rig refurbishment, onshore EPC and other services, as well as planned expansion into Offshore EPCI under the Saudi Aramco LTA.
Lamprell previously said it is progressing a financing strategy that may include additional equity, monetising assets, project-specific financing, including small working capital facilities with Saudi banks, and hybrid facilities with a view to concluding these options in 2Q 2022.
In February 2022, the company reported that its financial performance was affected by additional costs associated with significant impacts of COVID-19 on the supply chain and labour availability. Subject to audit, revenues in 2021 amounted to $389 million. Net cash on 31 December 2021 was $53 million of which $26 million is unrestricted. Backlog stood at $343 million, the majority of which is scheduled to run off in 2022.
It is worth reminding that Lamprell in February received a limited notice to proceed, pending a new contract award from Bas Global Marine Services (BGMS), a subsidiary of BIG Oil & Gas, in anticipation of the full award in the second quarter of 2022.