LAM (Lamprell) does the following:
The principal activities of the Company and its subsidiaries include the upgrade and refurbishment of offshore jackup rigs; fabrication; assembly and new build construction for the offshore oil and gas and renewable sector, including jackup rigs and liftboats; Floating Production, Storage and Offloading (FPSO) and other offshore and onshore structures, and oilfield engineering services, including the upgrade and refurbishment of land rigs.
The National reports:
A shortage of drilling rigs threatens to hold back Abu Dhabi’s ambitious plans to expand oil production.
Operating companies and foreign partners in exploration projects privately complain of difficulty in securing rigs to develop resources in the emirate.
At the same time, the order books of local rig builders are swelling with demand. Lamprell and Petrofac, two fabricators with UAE shipyards, had a combined order backlog of US$10.9 billion (Dh40.03bn) by midyear, up from just under $9bn in 2010.
LAM has issued a string of profit warnings, sending its share price down 81% from 386p in July 2011 to 74.25 on 9 November 2012. In the latest announcement, the company states that losses will be greater expectations.
However, I am bullish on this stock. It has a healthy order book, and demand is “swelling”. The profit warnings stem from project management issues.
El1te Trader fleshes out the details in his blog.