Lamprell, the oilfield services firm based in the UAE, has blamed tough trading conditions for a drop in net profit last year.
Lamprell net profit drop in a tough year
Lamprell, the oilfield services firm based in the UAE, has blamed tough trading conditions for a drop in net profit last year. "Trading conditions in 2009 were extremely challenging with a dramatic reduction of credit in Lamprell's operating markets affecting 2009 results and order book," said Nigel McCue, the chief executive. Net profit dropped to US$28.4 million (Dh104.3m) from $80.5m in 2008, and revenue fell 42 per cent to $435.6m.
Lamprell, which operates from yards in Dubai and Sharjah, said a $102m contract was cancelled last year, leaving it with $633m of orders on its books. The company had more rig refurbishment in its yards than in previous years but average spending by clients was lower, Mr McCue said. "We continue to see a reduced level of offshore construction activity," he added. Lamprell dominates the Middle East market for the refurbishment of "jack-up" rigs, which operate in shallow water.
The trends noted by the firm reflected the uncertainties in the global oil industry last year, causing even energy companies operating in the world's most prolific oil-producing region to take steps to conserve cash. Mr McCue said he remained "confident" Lamprell's long-term prospects remained "very promising". email@example.com