Lamprell shares fall after oil rig maker warns on revenue
(Adds CEO, CFO and analyst comments)
LONDON, March 26 (Reuters) - Oil rig maker Lamprell (Frankfurt: L51.F - news) said revenue would fall slightly over the next two years, sending its shares down nearly 10 percent, as the British firm focuses on winning new orders after a disastrous 2012.
Last year was described by Chief Executive James Moffat as a "turning point" which saw the Dubai-based rig maker swing back into profit, and he said he was "encouraged" by the company's performance and bidding pipeline.
Lamprell (LSE: LAM.L - news) expects revenue for 2014 to come in at around $1 billion, compared to $1.1 billion last year, with margins remaining similar, Chief Financial Officer Joanne Curin said.
The firm has taken a "back to basics" approach since Moffat took over last year following a $111 million loss in 2012 - described as the most challenging year in Lamprell's history - as expansion into wind turbine vessels was hit by operational difficulties and led to a series of profit warnings.
Challenges of turning the business around hit the ability to attract new business resulting in a weaker order backlog which dropped to $0.9 billion at the end of 2013.
Moffat said securing contracts in the next few months would be crucial in order to beat what he described as a "conservative" outlook for this year, adding that Lamprell was down to the final stage of winning three major new bids.
The company reported pre-tax profit of $40 million for last year ahead of Thomson Reuters I/B/E/S consensus of $23.3 million.
Analysts at JP Morgan (Other OTC: JPYYL - news) said the results exceeded their expectations in a note to clients, adding that the company appeared to be "having some success with cost control measures."
(Reporting by Stephen Eisenhammer; editing by Keith Weir and Louise Heavens)