- Lamprell's revenues fell to $705.0m in 2016 from $871.1m the previous year and the group posted a loss from continuing operations after income tax and exceptional items of $182.2m against a profit of $66.5m in 2015.

But the group said its underlying performance was in line with expectations and it made a profit from continuing operations after income tax and before exceptional items of $44.3m.

EBITDA fell to $30.6m from $90.0m with margins of 4.3% down from 10.3% in 2015.

The group said revenue was in line with guidance, reduced by the $25m settlement with Ensco as a result of Cameron equipment issues.

It said profit after tax was impacted by an exceptional non-cash goodwill impairment charge of $180.5m arising on the acquisition of Maritime Industrial Services in 2011, in line with continued market downturn.

It said EBITDA decreased as a result of the impact on profitability of the settlement with Ensco, slightly offset by cost savings and improved efficiencies.

Other highlights:

- Total impact of the settlement with Ensco revised to $42.6 million as a result of a finalised cost estimate of additional services ($17.6 million from $10.0 million) comprised in the settlement, in addition to the price reduction of $25 million

- Management actions on costs to align the business with near-term outlook, whilst retaining core strengths to enable Lamprell to rebound quickly; administrative reductions (20%) and other overhead cuts expected to deliver the full benefit of $23.4 million of annualised savings in 2017

- Robust net cash position of $275.2 million; strengthened with inflow from final milestones on project deliveries in 2H 2016

Chairman John Kennedy said: "2016 was an extremely busy year for Lamprell on all fronts: operationally, commercially and strategically.

"Our yards remained at record-high activity levels throughout the year with seven concurrent jackup rigs and a large onshore modules project.

"The past year's underlying performance was strong, albeit affected by one-off events, with market challenges expected to continue in the upcoming year.

" We are now fully focused on building a clear path to medium and long-term growth of the business. With this goal in mind, the board has worked hard to progress one of our key strategic priorities: the step-change opportunity offered by our potential participation in the Maritime Complex in the Kingdom of Saudi Arabia.

"Lamprell's board is focused on progressing the partnership negotiations on this impressive project."

Story provided by