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.

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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.



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