OREANDA-NEWS. Results for the first half of 2014 ahead of expectations due to strong operational performance and early results from savings initiatives, generating improved margins

Revenues are up by USD 125.7 million against H1 2013 as a result of the high H1 activity levels and phasing of construction activity during the period

Successful rights issue and refinancing provides a strong financial platform and enables delivery of long-term growth strategy

Operational highlights

Strong operational performance in all core markets enhances Lamprell's track record for project execution

Successful delivery of two jackup rigs to National Drilling Company, the 13,200 tonne production utilities and quarters deck to Nexen for use in North Sea sector and a new self-propelled jackup vessel to Seajacks

Largest and one of the most complex rig conversion and refurbishment projects in Lamprell's history delivered to the client after the period end

Over USD 900 million of new awards since January 2014 including multi-rig awards from each of Ensco and Shelf Drilling, as well as an award from Petrofac for modules to be deployed in Abu Dhabi

As at 30 June 2014, backlog of USD 1.2 billion (31 December 2013: USD 0.9 billion) with bid pipeline increasing to approximately USD 4.9 billion (31 December 2013: USD 4.7 billion)

World class safety record continues on various projects including ten million manhours without a lost-time incident on Nexen project

Project Evolution, a programme to deliver material productivity improvements and cost efficiencies, is progressing well and generating some early returns

Current trading and outlook

Five new build jackup drilling rigs to be delivered between November 2014 and March 2015

Order book rebuilt and now extending out to Q2 2017

Continued strong demand for our core markets as demonstrated by increased bid pipeline

All ongoing major projects progressing well

Revenue expectations for FY 2014 unchanged; lower revenue levels expected in H2 2014 compared to H1 2014 due to timing of build cycles and reduced activity in onshore and offshore construction market

Full year outturn anticipated to be ahead of expectations predominantly due to projected continuing strong operational performance and initial savings from procurement activities

As previously announced, revenue for FY2015 expected to be broadly flat on FY2014 with significantly fewer major project completions in FY2015

Drive to target further reductions in overheads

John Kennedy, Non-executive Chairman for Lamprell, said:

"Lamprell has achieved a great deal in the first half of 2014. We have delivered a strong operational and financial performance, made good progress in converting our pipeline and successfully completed a rights issue and a major debt refinancing. The business is now well-positioned to deliver on its refreshed growth strategy and to create long-term value for all stakeholders."

James Moffat, Chief Executive Officer for Lamprell, said:

"Our continued focus on operational excellence has resulted in a strong first half performance that has exceeded our expectations. At the same time our safety track record has been world class. In 2014, we are delighted to have rebuilt our order book, winning significant awards from both new and existing customers. We are making good progress implementing our refreshed growth strategy based on our core markets and are already beginning to see the benefits of a stronger balance sheet. While we anticipate lower revenues in the second half of the year, we expect the outturn for the full year to be ahead of our expectations."