StockMarketWire.com - 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."




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