Friday 19 October 2018

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Lamprell sees loss in UK wind farm project

LONDON, November 30, 2017

UAE-based oil rig builder Lamprell has announced that it expects to make a "significant loss" on work for the East Anglia One wind-farm project in the British North Sea, according to a media report.

The company, whose main facilities are at Hamriyyah, Sharjah and Jebel Ali, won a $225 million (Dh827 million) contract last year from Scottish Power Renewables for the fabrication and supply of 60 jacket foundations and accompanying piles for the project, with delivery due to take place between March and October next year, reported Wam, the Emirates official news agency.

The contract was a first major step by Lamprell into the renewable energy business.

"As announced previously, there were start-up costs and inefficiencies in relation to the project and the learning curve has proven to be steeper than anticipated. We remain confident of meeting our client's expectations in terms of schedule and quality but we will incur extra costs to achieve this. As a result, we now expect the project to make a significant loss, which will be booked in 2017,” the company said in a statement.

The company will make an announcement in due course about the financial impact but expects earnings for this year "to be materially below market expectations," the statement said.

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