Oil rig maker Lamprell in talks with lenders

Lamprell said Thursday it was making progress in talks with lenders to fund future growth of the oil rig maker.

Lamprell said Thursday it was making progress in talks with lenders to fund future growth of the oil rig maker.

The company is continuing the discussions to finance operations as it is likely to post a 2012 loss in line with expectations, according to a trading update.

The update comes after Lamprell announced its working capital position had improved significantly, ending 2012 with net cash of about $100m thanks to higher revenues.

Lamprell issued its fifth profit warning for 2012 in November, saying its full-year loss would be seven times bigger than first thought.

However, the group remained optimistic as trading stability returned and projects were on track including its Windcarrier 2 vessel which is due to be delivered in February.

They also recently completed the construction of jackup rig, Greatdrill Chaaya, and delivered it to Greatship Global Energy Services.

Lamprell scored number of contracts for rig refurbishment projects, including the repair and upgrade of jackup rig, Rowan California, for Rowan Drilling.

"We continue to see stability returning to the business and to our operations, as we start to deliver on existing key projects and steps that we have taken to re-establish financial and operational control over the business become effective," John Kennedy, Non-Executive Chairman, Lamprell, said.

"The group has started the year well, with notable positive progress made regarding some major projects and in the cashflow situation, and this allows us to look forward with renewed confidence."

Shares were up 4.90% to 128.50p at 11:05 Thursday.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020