Lamprell Plc (LAM), the oil-rig engineer suffering project delays, plunged to the lowest in 3-1/2 years in London after saying its 2012 loss will be wider than forecast and it will make changes to its senior management.
The company slumped 36 percent to 70 pence, the lowest level since April 2009. Lamprell will announce details of leadership changes in the “near term,” it said in a statement.
Delays to the Windcarrier project led to additional costs, while a holdup on a separate development will stall some sales and earnings until next year, said the Douglas, Isle of Man- based company, whose main facilities are in Dubai. Lamprell forecast in August a full-year loss of as much as $17 million.
Chief Executive Officer Nigel McCue had pledged to revamp Lamprell after unexpected delays to projects since May drove down its share price. The company didn’t give an update today on talks with banks after receiving waivers on loans at the end of June. Lamprell said Aug. 28 it would have to negotiate with lenders again to avoid breaking loan conditions at the year-end.
“I am extremely disappointed in the need to make this latest trading update and feel that a refreshed management team will bring a more focused sense of delivery,” Chairman John Kennedy said. “Fundamentals of the business continue to be sound and the order book and new contract pipeline remain strong.” Kennedy, a former executive at Halliburton Co. (HAL:US) and Wellstream Holdings Plc, started as chairman three months ago.
The order book stands at about $1.5 billion, Lamprell said.
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