- Lamprell maintained margins in 2015 despite a challenging environment and posts results in line with expectations.

Profit of USD66.5 million (2014: USD93.2m) was ahead of market expectations on the back of strong operational performance and contribution from efficiency and productivity measures but revenues of USD871.1 million (2014: USD1,084.9m), were slightly below earlier guidance due to the impact of the market downturn.

EBITDA margin down from the exceptional level of 12.6% in 2014 to a more normalised level of 10.3%, with pricing pressure partly offset by positive impact of higher productivity and cost efficiencies.

Executive chairman John Kennedy said: "2015 was a challenging year for the global energy industry and Lamprell began the year in a position of relative strength, with a high level of backlog and a strengthened balance sheet, which allowed the Group to deliver a robust performance.

"Although we have been affected by the slow-down in new awards worldwide as companies have delayed project sanctions, Lamprell has shown resilience and has been quick to react and adapt. We have refined our strategy and structured our operations so as to remain competitive and to be well-prepared for another challenging year in 2016.

"At the same time, we have not lost sight of our strategic objectives by building a foundation for longer-term growth. We continue to diversify our bid pipeline, pursue strategic alliances and have recently announced early stage discussions regarding our potential participation in the Maritime Yard in Saudi Arabia.

"In the meantime, our cost advantages and strong balance sheet will help us to compete in a very challenging market as the downturn is expected to continue through 2016."

Chief executive James Moffat sadded: : "Lamprell's operational performance has been consistently strong over the past few years and I am pleased to see that continuing throughout 2015, resulting in financial performance in line with expectations in the face of market headwinds. Having successfully implemented Project Evolution, the benefits from this programme of cost efficiencies and productivity improvements have proven to be key to both our operational and our financial results in 2015 and that will continue in 2016. We have been able to maintain our competitiveness in a market with significant downward pressure on pricing.

"As a result, not only have we maintained healthy margins, but this also helped us win one of only three rigs awarded globally in 2015. It seems unlikely that the markets will return to full recovery in 2016 and so we currently expect our full year revenues for 2016 to be around 5% below 2015 levels. Our business retains a high degree of flexibility leaving us sufficient room to undertake further measures to adapt to the market environment and preserve our long term future."

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