Bloomberg reported that Lamprell Plc, an oil and gas rig builder active in the Middle East, rose to the highest in 2 months after doubling profit and reporting a record order backlog.
Shares of the Douglas, Isle of Man based company rose 5.4% to close at 331 pence in London. Profit rose 135% to USD 67 million in 2010 and the order book stood at USD 962 million at the end of February.
Lamprell has benefited from a global increase in demand for new rigs after the blowout last year at BP Plc’s Macondo well in the Gulf of Mexico. Brent crude prices are also more than 40% higher than a year ago, encouraging explorers to spend more on drilling.
Mr Nigel McCue CEO of Lamprell said that “Macondo triggered a surge in the market for new builds. We’re very positive about 2011. We’ll certainly see an increase in revenue through the year based on the backlog we’ve got.”
The UAE based oil services group said that there was a significant improvement in the group’s operating markets after the turbulence caused by the economic crisis in previous years. The figures also include a one off USD 23.9 million gains due to a cancelled contract with Riginvest.
In the twelve months ended December 31st 2010 Lamprell increased revenues to USD 425.5 million up 18% compared to the previous year. Operating profit improved 149.1% to USD 69.5 million while the group’s net profit rose 134.5% to USD 66.6 million. Similarly earnings per share grew by 134.2% to 33.25 cents. The company is proposing 9.5 cents a share final dividend.
Mr Nigel McCue said that 2010 proved to be a very positive year for the company. Strengthening oil prices have contributed to unprecedented levels of enquiries and bid activity.
McCue also highlighted an unexpected turnaround in the new build jackup rig market which was partly a reaction to the fall out from the BP oil spill in the Gulf of Mexico. As well as this post Macondo effect McCue emphasized that there is a continuing drive for modern, cost effective and efficient drilling units.
He said that building upon the success in 2010, 2011 has started encouragingly. We maintain our focus on existing core business, together with complementary markets. The company is confident in its prospects for future growth and success, both for the current year and in the longer term, based upon both its record order book position, and the strengthening which it sees in its key markets.
(Sourced from Bloomberg)
