Lamprell, a provider of engineering services to the international oil & gas and renewable industry based in the UAE, reported a half yearly loss and suspended its dividend payment following contract supply delays and a series of contract issues.
The oil rig engineer, which has issued a string of profits warning after cost overruns on key projects, said changes are being introduced across the business, which include management reorganisation and the implementation of improved processes, systems and controls.
Lamprell posted an operating loss of US$33.8m for the six month period to 30 June 2012 from a US$ 21.6m profit a year earlier. Revenue increased to $528.1m during the period from $383.6m the same time a year earlier.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
No interim dividend has been proposed compared to a 4.00 cents payment the same time last year.
Commenting on the half year results, CEO Nigel McCue, said: "These results are undoubtedly a disappointment to the board and our shareholders. After an extended period of sustained growth and profitability, the performance in the 6 month period to 30 June 2012 comes as a setback."
He added that management is addressing the causes which have given rise to the under performance in the first half of the year.
The group's order book remains at $1.5bn and bid activity remains positive across all of its businesses, it said.
Cash and bank balances as at 30 June 2012 stood at $134m, including restricted cash of $101.4m.
CJ
