LONDON (dpa-AFX) - Oil rig construction company Lamprell plc. (LAM.L) Thursday said it expects revenues for fiscal 2018 to be consistent with previous guidance at around $235 million. Meanwhile, the company sees a net loss of approximately $71 million for the year due to margin pressure at these revenue levels as well as no margin contribution from the East Anglia One project in 2018.
In its trading update on its performance for 2018, the company said its performance is in line with previous revenue guidance, with strong strategic progress and developing pipeline.
The company said its position in Saudi Arabia, a key growth market, was further strengthened by it joining Saudi Aramco's LTA program. Although this has not translated into backlog at this stage, the program is key to the fir's growth and recovery and it anticipates the first opportunities to materialise in 2019 and beyond.
The company's backlog has increased to around $540 million as at 31 December 2018 from $61.7 million at the end of H1 2018.
Christopher McDonald, Chief Executive Officer said, 'Despite the challenges of the market environment in 2018, we have delivered against the objectives that we set out earlier in the year. ... Given the ongoing uncertainty in the industry, this reconfirms our confidence that Lamprell's strategy will deliver growth for the business from 2019 onwards.'
Lamprell will announce its full year 2018 financial results on March 21, and will hold its annual general meeting on May 21.
Copyright RTT News/dpa-AFX