(LAM.L) Lamprell PLC Buy/Sell

RNS Number : 7346C
  Lamprell plc
  19 November 2009
   
     

    

19 November 2009

LAMPRELL PLC
("Lamprell" or the "Group")

INTERIM MANAGEMENT STATEMENT

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas industry, issues the following Interim Management Statement for the period 1 July 2009 to 19 November 2009. 

Market conditions remain broadly consistent with those reported at the time of the interim results announcement on 26 August 2009. 

From an operating perspective the Group delivered the second Seajacks liftboat, the Seajacks Leviathan, in July 2009 and the construction of the Scorpion Offshore Mischief for Scorpion Rigs Ltd is on schedule and on budget for delivery in the second quarter 2010. A further progress payment has been received on the Offshore Mischief project in line with contract terms.

The tender barge BassDrill Alpha, for BassDrill Limited ("Bassdrill"), is due to be delivered to BassDrill in December 2009. The Company has agreed to receive a reduced delivery payment of US$ 60 million and it is understood Bassdrill is in the process of raising these funds. Payment is due on delivery of the unit. The Company remains in discussion with Riginvest G.P. regarding financing options of the LeTourneau Super 116E jackup drilling rig project. We will update the market on these projects as appropriate.

In rig refurbishment we have worked on 20 jackup rigs at our Sharjah and Hamriyah facilities since July, including 5 jackup rigs at our new Hamriyah facility. In Thailand, our Sattahip facility has successfully completed its second jackup rig refurbishment project, the Atwood Vicksburg. In Jebel Ali, work is proceeding on the Saipem Livorno and Aquila process modules for Saipem S.p.A. and the spud can extensions for Master Marine ASA. 

The Board continues to focus on ensuring that Lamprell maintains high standards relating to project execution, with a particular emphasis on safety standards, work quality and delivering projects on time and on budget. It also remains focused on the Group's operating cost structure, to ensure this is scalable to the level of on-going business. The objective is to ensure that the optimum levels of resources are employed and that there is effective utilisation of labour supply personnel and hired equipment. Compared to the prior year, for the period to 31 October 2009, labour supply cost has reduced by 62% and equipment hire by 58%. The strategic agreements with various suppliers that the Company's procurement group has established have delivered significant cost savings throughout 2009 and we expect to achieve further cost savings in 2010 and beyond, as additional strategic agreements are put in place.

We announced US$ 52 million of contract awards in September 2009 comprising a Floating Production, Storage and Offloading ("FPSO") contract with Saipem Energy Services S.p.A. and two rig refurbishment contracts with long established clients, Transocean Investments S.a.r.l. and Noble International Limited. We have recently signed a US$ 17 million contract with Saipem S.p.A. for the construction of a 140 man accommodation module, work on which will commence in November 2009, and we have added US$ 37 million to the Company's order book in respect of further rig refurbishment contracts and the growth in work scope of on-going rig refurbishment contracts.

During the second half of the year the oil price has been rising and this is viewed as a positive indicator for the oil services sector. For our part, we continue to see high levels of enquiries for our services in most sectors of our business. Despite increasing competition from yards in Asia and the Far East, the Board remains confident in the long term prospects of the Group.  

Although our 2009 trading performance is currently, broadly in line with market expectation, the outcome of our discussions with Bassdrill, in particular, will have an adverse impact on the results for the year. However, the outcome of ongoing discussions with several potential customers regarding contract awards could have a positive impact on the results for the year.

The Group's order book at the end of October was approximately US$ 422 million, comprising mainly of US$ 317 million from EPC projects and US$ 58 million from FPSO projects. The Group's financial position has not changed significantly from 30 June 2009, and the Group's balance sheet remains strong.

- Ends -

Enquiries:

 Lamprell plc                                             +44 (0)20 7920 2330
 Nigel McCue, Chief Executive Officer
 Scott Doak, Chief Financial Officer
 Peter Whitbread, Director of International Development 

 M:Communications, London
 Patrick d'Ancona          +44 (0)20 7920 2347
 Georgina Briscoe          +44 (0)20 7920 2348

Notes to editors 

Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry. 

·         Lamprell*s three primary facilities are in Port Khalid and the Hamriyah Free Zone, in the Emirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai, all of which are in the UAE.
 
·         The principal markets in which Lamprell operates, and the principal services it provides, are:
 
o  Upgrade and refurbishment of offshore jackup rigs;
o  Engineering, procurement and construction of jackup rigs, liftboats and drilling 
 related equipment;
o  New build construction for the offshore oil and gas sector, including Floating 
 Production, Storage and Offloading systems and other offshore and onshore 
 structures; and
o  Oilfield engineering services, including the upgrade, refurbishment and new 
 building of land rigs.
 
 

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IMSBPBRTMMJBBRL

RNS Number : 4076C Lamprell plc 12 November 2009

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES
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of existing shares to which voting rights are attached: 2. Reason for the notification (please tick the appropriate box or boxes)
An acquisition or disposal of voting rights X

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached An event changing the breakdown of voting rights Other (please specify): ___________
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notification obligation: 4. Full name of shareholder(s) (if different from 3.):
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6. Date on which issuer notified: 11/11/2009
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Number of Shares Number of Voting Number of shares Number of voting % of voting
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the financial instruments are effectively held, if applicable: Pearl Group Limited Impala Holdings Limited Pearl Group Holdings (No.1) Ltd Ignis Asset Management Ltd Ignis Investment Services Ltd (indirect)

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Proxy Voting:

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13. Additional information: Percentage calculation based on Issued Share
Capital of 200,279,309
14. Contact name: Deborah A. Wagner
15. Contact telephone number: 0141 222 8000

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08:00GMT 15Sep2009-Lamprell up on contract wins

Shares in Lamprell Plc rise as much as 11 percent after the oil and gas rig services company says it has won three contracts worth $52 million in total.
"Although these new orders will just about maintain the order book at the interim level, management's key focus is on building up the order book rapidly over the next year," says Peter Hitchens at Panmure Gordon.
Panmure says the key for Lamprell is the company's ability to secure new orders for liftboats, which are in demand for offshore installations.
"We would wait until we see the order book start to grow before we would have confidence to buy," says the broker, maintaining a "hold" rating on the stock.
To see Lamprell's statement please click on

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07:54GMT 15Sep2009-BT gains as Credit Suisse upgrades

BT Group is among the FTSE 100's strongest performers, up 3.2 percent to 133.9 pence, beating the European telecoms sector 0.2 percent gain after Credit Suisse upgrades the stock to "outperform" from "neutral" and raises its price target to 170 pence.
The broker says mid-term revenue growth looks achievable, and that this will be driven by BT Retail, rather than its Global Services arm.
"We believe fixed-line price inflation can become a recurring theme (helped by regulatory support) whilst fibre (optic cables) can arrest and potentially reverse line loss," it says in a note.
It says BT has plenty of scope for growth in this area, given that it only has 11 percent of the market in cabled areas.

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07:40GMT 15Sep2009-Anite tumbles on 4G slippage

Shares in Anite fall 10 percent as the software firm says first-half profit will be significantly down, reflecting challenging trading conditions, and there has been some slippage in its 4G (next generation mobile technology) programme being developed with hardware company Agilent.
"Anite's FY 2010E remains highly dependent on the successful (and timely) launch of Agilent's LTE (long-term evolution, or 4G) solution, as any further slippage could be very damaging for Anite," says Altium analyst Jonathan Imlah.
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07:36GMT 15Sep2009-Smiths Group down; M.Stanley downgrades

Shares in Smiths Group fall 1.7 percent after Morgan Stanley cuts its rating for the engineering firm to "equal-weight" from "overweight", mainly citing valuation grounds.
Morgan Stanley, in a note, raises its target price for Smiths Group to 850 pence from 825 but says following a 30 percent increase in the firm's share price in the last three months "its attributes of top-line resilience and self-help potential are now largely in the price."
Moreover, the broker says, it has not seen any large orders announced in Smiths Group's Detection division in the second half of 2009, which it thinks "raises questions on the timing of recovery and the sustainable earnings power of the division".
Morgan Stanley says the view that Smiths Group could narrow its business portfolio through asset sales might continue to move the shares, but it does not see enough upside to fundamental value to justify an "overweight" stance.

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07:30GMT 15Sep2009-UK small caps gain 0.1 percent early

The FTSE Small Cap index gains 0.1 percent in early trade, in line with the blue chips, while the midcaps rise 0.2 percent.
Goldplat adds nearly 7 percent after the gold producer reports pretax profits of 2.4 million pounds for the year to end-June 2009, compared with 1.6 million pounds the previous year.
Lamprell gains over 6 percent after the oil services firm receives contract awards from three of its key customers, which in aggregate total $52 million.

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07:20GMT 15Sep2009-Dunelm leaps on "stellar" current trading

Dunelm shares jump 12 percent to a new high of 312 pence after the British homewares retailer reports a 16.1 percent jump in like-for-like sales for the 10 weeks to Sept. 12.
"Stellar current trading," says Singer analyst Matthew McEachran.
He expects analysts' consensus profit forecast for 2009/10 to rise from the current 54 million pounds to between 57 and 59 million, and says a further acceleration in new store openings could boost earnings more.

Cazenove analysts raise their recommendation on Dunelm shares to "outperform" from "in-line."
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LONDON, Sept 15 (Reuters) - Lamprell Plc:

RNS Number : 0417Z Lamprell plc 15 September 2009

15 September 2009

LAMPRELL PLC

("Lamprell" or the "Company")

LAMPRELL ANNOUNCES US$ 52 MILLION OF CONTRACT AWARDS

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas industry, is pleased to announce that it has received contract awards from three of its key customers, which in aggregate total US$ 52 million.

New contract awards

Lamprell is pleased to announce that it has been awarded the following contracts:

Saipem Energy Services S.p.A ("Saipem") has awarded Lamprell a US$ 18.1 million contract for the construction of six process modules, pipe-rack sections and interconnecting pipe spools for the Aquila Phase 2 Floating Production, Storage and Offloading ("FPSO") Project. The modules will be constructed at the Jebel Ali facility and are scheduled to be completed in November 2010.

Noble International Limited has awarded Lamprell a US$ 20.4 million award for the fabrication and installation of three 309 feet legs for the David Tinsley jackup drilling unit, in addition to general refurbishment and upgrade works already underway to repair the hull, leg wells and jacking houses. The work has commenced at the Hamriyah facility and is scheduled to be completed by the end of July 2010.

Transocean Investments S.a.r.l. ("Transocean") has awarded Lamprell the contract for the upgrade and refurbishment of the Key Manhattan jackup drilling unit. This project will be undertaken in Croatia by Lamprell at the Nauta Lamjana shipyard. The initial contract value is US$ 13.4 million and the work scope includes extensive steel renewals and associated painting works, structural repairs to the cantilever and derrick, and the replacement of hull piping systems. The work will commence during September 2009 and is scheduled for completion in December 2009.

Commenting on the contract awards Nigel McCue, Chief Executive Officer, Lamprell said:

"We are delighted to be announcing these contract awards which illustrate the continuing demand for our services. The contract with Saipem is our first FPSO award since July 2008 and reinforces the confidence we have in the long-term viability of the offshore construction market both for fixed and floating structures.

We are also pleased to announce our rig refurbishment contract wins with two long established clients. They endorse our strong reputation for quality, safety and service and for delivering projects on schedule and on budget. We are particularly encouraged to be involved in the offsite project with Transocean, which reflects a developing area of business for Lamprell.

We are confident that Lamprell will continue to meet and exceed the expectations of its clients."

Enquiries:

Lamprell plc +44 (0) 207 920 2330

Jonathan Silver, Chairman Nigel McCue, Chief Executive Officer Scott Doak, Chief Financial Officer

M:Communications, London
Patrick d'Ancona +44 (0) 207 920 2347
Georgina Briscoe +44 (0) 207 920 2348

Notes to editors

Lamprell, based in the UAE, has played an increasingly prominent role in the development of the offshore industry in the Arabian Gulf for over 30 years, in later years providing specialised services to the offshore oil and gas industry.

RNS Number : 6126Y Lamprell plc 07 September 2009

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Lamprell plc (i) Transaction
notified in
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143.21 p 4 September 2009,
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This information is provided by RNS The company news service from the London Stock Exchange

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10:13GMT 26Aug2009-Lamprell falls after order book halves

Shares in Lamprell Plc fall 4.8 percent after the oil services firm reports a 40 percent fall in first-half net profit and says its order book halves, reflecting lower demand for rig refurbishment and offshore construction.
Evolution Securities analyst Keith Morris, who has a "reduce" rating on the company, says he remains more cautious than the market on the potential recovery of the new build rig market and rig refurbishment.
"We remain convinced that there is better visibility and leverage elsewhere in the sector," he says. "Delays in new projects increase concern about 2010."
For more click on

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09:54GMT 26Aug2009-Punch gains as analyst enthusiasm grows

Punch Taverns shares rise as much as 13 percent to a 2-1/2 month high of 148.10 pence, their second day of strong gains as analysts take a more positive stance after news that Britain's biggest pub company is cutting its debt pile more quickly than expected.

"The group now has an attractive debt structure, with limited short-term refinancing risk," Shore Capital analysts say, reinitiating the stock as a "buy" after putting its previous "sell" rating under review a few weeks ago.
"Punch currently trades at a 62 percent discount to its NAV (net asset value) per share of 330 pence. This suggests either the market believes that Punch will not survive, or its property portfolio is drastically overvalued. Our analysis suggests neither of these to be the case," Bank of America-Merrill Lynch analysts say, upping their share price target to 200 pence from 120 pence.
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09:33GMT 26Aug2009-Marshalls up; Panmure says "buy"

Shares in building materials company Marshalls add 4.1 percent, as Panmure Gordon upgrades its rating to "buy" from "hold" and ramps its target price up 61 percent to 145 pence, from 90 pence, with the broker forecasting a bullish outlook for the group.
"Marshalls will emerge from the current recession in excellent health (and increased market share)," Panmure Gordon says in a note ahead of the company's interim results.
"Whilst profitability will remain significantly depressed at the group in the short term, we believe that investors should now look beyond the current market conditions."
The broker assigns a price earnings ratio of 12 times present value and estimates earnings per share of 19.8 pence in 2013, forecasting landscape sales returning to its peak of 400 million pounds by that point.

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09:00GMT 26Aug2009-Premier Oil falls on disappointing well results

Shares in Premier Oil fall as much as 4 percent after the oil and gas producer says it is plugging and abandoning the Frida Marine-1 well in Congo as it did not find hydrocarbons.
Oriel Securities says its revised net asset value is 1,332 pence per share with risked exploration upside of 236 pence, a valuation that removes both Frida and the neighbouring Ida prospect, which the broker says is also likely to be in doubt.
Meanwhile, Premier's successful Bream appraisal well in Norway, also announced this morning, has reserve estimates of between 39 and 63 million barrels, in line with pre-drill estimates and Oriel's own models, the broker adds.

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08:49GMT 26Aug2009-WPP falls as H1 revenues disappoint

Shares in WPP Group shed 3.2 percent after the advertising giant's first-half revenues disappoint, prompting Citigroup to repeat its "sell" rating on the stock.

Citigroup says in a note that WPP's results were "significantly" below its expectations and it "continues to see late cyclical pressure and remain unconvinced that the bounce back in 2010 will be significant enough to drive significant earnings recovery."
The broker says it expects a "degree of pressure" on consensus EPS forecasts for WPP which it expects to come down to nearer 42 pence versus current consensus of 46-47 pence.
Citigroup says that with the stock trading at nearly 12 times earnings it believes "the market is pricing in too much too soon" and would recommend taking profits in the stock.
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08:20GMT 26Aug2009-Glisten gains; LFL sales up

Shares in Glisten rise 11.9 percent after the confectioner announces a delay in reporting its full-year results, but says there is no indication of causes for concern and like-for-like sales are up 20 percent in the first seven weeks of the current financial year.
Glisten adds that the review process, to look into accounting failures at its Halo Foods unit, needs to be completed before talks with its banks regarding renewed and restructured facilities.
"Revised banking facilities could cost Glisten 0.5 million pounds per annum but if PBT bounces to say 3.8 million pounds in 2009/10, then earnings per share of 19.4 pence would result (in) a price earnings of 3.7 times," says finnCap in a note.
"This is a cheap situation but there will now be a delay until the poor 2008/09 results are 'cleared' and the talks with bankers are concluded."
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08:00GMT 26Aug2009-Costain falls on 2009 interest, pension hit

Shares in Costain fall 5.7 percent after the construction company reports a 31 percent fall in first half profit, with the group likely to take a full-year hit on interest earnings and pension payments.
"In view of current interest rates, interest income is likely to be significantly lower in 2009 than in 2008 and we expect a 4.5 million pounds non-cash impact from pensions as the expected returned on plan assets falls short on the liabilities," say Arbuthnot analysts.
They add that 2009 will likely show an improvement in operating profit, but a reduction at the net level.
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07:44GMT 26Aug2009-Vitec drops after H1; Altium downgrades

Shares in Vitec Group fall 6 percent after the media products firm posts a 41 percent fall in first-half adjusted pretax profit, with Altium Securities cutting its rating to "hold" from "buy" on valuation grounds.

Altium, in a note, calls the first-half results "solid" and notes that Vitec's management are "confident of an improved second-half performance in trading following further efficiency measures which will increase annualised savings to 22 million pounds in total."
However, the broker says it does not expect to see any increases in the underlying levels of demand for Vitec's products and services until well into full-year 2010.
Altium says it is making no change to its earnings forecasts for Vitec but with no near term boost to the share price expected, it cuts its rating as the stock has now passed its unchanged, valuation-driven 301 pence target price.
Vitec's shares have gained 34 percent since the start of the year.
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07:37GMT 26Aug2009-FTSE small caps up 0.1 pct early on

The FTSE small cap index is 0.1 percent higher in early trade, tracking gains on the FTSE 100, up 0.1 percent, which is on course for it seventh successive session of gains, while the FTSE 250 adds 0.3 percent.
Anglo Pacific climbs 6 percent, as the natural resource royalty company ramps up its interim dividend by 7.25 percent to 3.70 pence, and sees coal royalty for the six months to June 30, increase to 11.7 million pounds from 3.7 million pounds a year previous.
However, the firm reports a lower first-half pretax profit.
Russian Internet firm Rambler Media falls 7.2 percent after reporting its net loss widened to $2.1 million in the first six months of 2009, from $0.5 million a year ago, as advertising revenue declined.

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Shares in Lamprell Plc fall 5.5 percent after the oil services firm reports a 40 percent fall in first-half net profit and says its order book halves, reflecting lower demand for rig refurbishment and offshore construction.
Evolution Securities analyst Keith Morris, who has a "reduce" rating on the company, says he remains more cautious than the market on the potential recovery of the new build rig market and rig refurbishment.
"We remain convinced that there is better visibility and leverage elsewhere in the sector," he says. "Delays in new projects increase concern about 2010."
For more click on

Reuters messaging rm://ram.kumar.thomsonreuters.com@reuters.net

COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

STOCKS NEWS Reuters Results diary
Europe Real-time Equity News
UK Stocks on the move
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10:13GMT 26Aug2009-Lamprell falls after order book halves

Shares in Lamprell Plc fall 4.8 percent after the oil services firm reports a 40 percent fall in first-half net profit and says its order book halves, reflecting lower demand for rig refurbishment and offshore construction.
Evolution Securities analyst Keith Morris, who has a "reduce" rating on the company, says he remains more cautious than the market on the potential recovery of the new build rig market and rig refurbishment.
"We remain convinced that there is better visibility and leverage elsewhere in the sector," he says. "Delays in new projects increase concern about 2010."
For more click on

Reuters messaging rm://ram.kumar.thomsonreuters.com@reuters.net
09:54GMT 26Aug2009-Punch gains as analyst enthusiasm grows

Punch Taverns shares rise as much as 13 percent to a 2-1/2 month high of 148.10 pence, their second day of strong gains as analysts take a more positive stance after news that Britain's biggest pub company is cutting its debt pile more quickly than expected.

"The group now has an attractive debt structure, with limited short-term refinancing risk," Shore Capital analysts say, reinitiating the stock as a "buy" after putting its previous "sell" rating under review a few weeks ago.
"Punch currently trades at a 62 percent discount to its NAV (net asset value) per share of 330 pence. This suggests either the market believes that Punch will not survive, or its property portfolio is drastically overvalued. Our analysis suggests neither of these to be the case," Bank of America-Merrill Lynch analysts say, upping their share price target to 200 pence from 120 pence.
For more information please click on

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09:33GMT 26Aug2009-Marshalls up; Panmure says "buy"

Shares in building materials company Marshalls add 4.1 percent, as Panmure Gordon upgrades its rating to "buy" from "hold" and ramps its target price up 61 percent to 145 pence, from 90 pence, with the broker forecasting a bullish outlook for the group.
"Marshalls will emerge from the current recession in excellent health (and increased market share)," Panmure Gordon says in a note ahead of the company's interim results.
"Whilst profitability will remain significantly depressed at the group in the short term, we believe that investors should now look beyond the current market conditions."
The broker assigns a price earnings ratio of 12 times present value and estimates earnings per share of 19.8 pence in 2013, forecasting landscape sales returning to its peak of 400 million pounds by that point.

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09:00GMT 26Aug2009-Premier Oil falls on disappointing well results

Shares in Premier Oil fall as much as 4 percent after the oil and gas producer says it is plugging and abandoning the Frida Marine-1 well in Congo as it did not find hydrocarbons.
Oriel Securities says its revised net asset value is 1,332 pence per share with risked exploration upside of 236 pence, a valuation that removes both Frida and the neighbouring Ida prospect, which the broker says is also likely to be in doubt.
Meanwhile, Premier's successful Bream appraisal well in Norway, also announced this morning, has reserve estimates of between 39 and 63 million barrels, in line with pre-drill estimates and Oriel's own models, the broker adds.

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08:49GMT 26Aug2009-WPP falls as H1 revenues disappoint

Shares in WPP Group shed 3.2 percent after the advertising giant's first-half revenues disappoint, prompting Citigroup to repeat its "sell" rating on the stock.

Citigroup says in a note that WPP's results were "significantly" below its expectations and it "continues to see late cyclical pressure and remain unconvinced that the bounce back in 2010 will be significant enough to drive significant earnings recovery."
The broker says it expects a "degree of pressure" on consensus EPS forecasts for WPP which it expects to come down to nearer 42 pence versus current consensus of 46-47 pence.
Citigroup says that with the stock trading at nearly 12 times earnings it believes "the market is pricing in too much too soon" and would recommend taking profits in the stock.
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08:20GMT 26Aug2009-Glisten gains; LFL sales up

Shares in Glisten rise 11.9 percent after the confectioner announces a delay in reporting its full-year results, but says there is no indication of causes for concern and like-for-like sales are up 20 percent in the first seven weeks of the current financial year.
Glisten adds that the review process, to look into accounting failures at its Halo Foods unit, needs to be completed before talks with its banks regarding renewed and restructured facilities.
"Revised banking facilities could cost Glisten 0.5 million pounds per annum but if PBT bounces to say 3.8 million pounds in 2009/10, then earnings per share of 19.4 pence would result (in) a price earnings of 3.7 times," says finnCap in a note.
"This is a cheap situation but there will now be a delay until the poor 2008/09 results are 'cleared' and the talks with bankers are concluded."
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08:00GMT 26Aug2009-Costain falls on 2009 interest, pension hit

Shares in Costain fall 5.7 percent after the construction company reports a 31 percent fall in first half profit, with the group likely to take a full-year hit on interest earnings and pension payments.
"In view of current interest rates, interest income is likely to be significantly lower in 2009 than in 2008 and we expect a 4.5 million pounds non-cash impact from pensions as the expected returned on plan assets falls short on the liabilities," say Arbuthnot analysts.
They add that 2009 will likely show an improvement in operating profit, but a reduction at the net level.
For more, click on

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07:44GMT 26Aug2009-Vitec drops after H1; Altium downgrades

Shares in Vitec Group fall 6 percent after the media products firm posts a 41 percent fall in first-half adjusted pretax profit, with Altium Securities cutting its rating to "hold" from "buy" on valuation grounds.

Altium, in a note, calls the first-half results "solid" and notes that Vitec's management are "confident of an improved second-half performance in trading following further efficiency measures which will increase annualised savings to 22 million pounds in total."
However, the broker says it does not expect to see any increases in the underlying levels of demand for Vitec's products and services until well into full-year 2010.
Altium says it is making no change to its earnings forecasts for Vitec but with no near term boost to the share price expected, it cuts its rating as the stock has now passed its unchanged, valuation-driven 301 pence target price.
Vitec's shares have gained 34 percent since the start of the year.
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07:37GMT 26Aug2009-FTSE small caps up 0.1 pct early on

The FTSE small cap index is 0.1 percent higher in early trade, tracking gains on the FTSE 100, up 0.1 percent, which is on course for it seventh successive session of gains, while the FTSE 250 adds 0.3 percent.
Anglo Pacific climbs 6 percent, as the natural resource royalty company ramps up its interim dividend by 7.25 percent to 3.70 pence, and sees coal royalty for the six months to June 30, increase to 11.7 million pounds from 3.7 million pounds a year previous.
However, the firm reports a lower first-half pretax profit.
Russian Internet firm Rambler Media falls 7.2 percent after reporting its net loss widened to $2.1 million in the first six months of 2009, from $0.5 million a year ago, as advertising revenue declined.

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COPYRIGHT

Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

LONDON, Aug 26 (Reuters) - Lamprell Plc:

RNS Number : 0057Y
  Lamprell plc
  26 August 2009
   

Embargo: 7am BST 26 August 2009

LAMPRELL PLC

("Lamprell" or the "Company")

2009 INTERIM RESULTS

Lamprell (ticker: LAM), a leading provider of specialist engineering services to the international oil & gas industry based in the UAE, is pleased to announce its Interim Results for the six month period ended 30 June 2009.  
H1 2009 FINANCIAL RESULTS
·   Revenue: US$ 259.9 million down 18.3% (H1 2008: US$ 318.2 million)
·   Operating profit: US$ 31.2 million down 32.2% (H1 2008: US$ 46.0 million)
·   Net profit: US$ 31.6 million down 34.0% (H1 2008: US$ 47.8 million)
·   EPS (fully diluted): 15.80 cents down 33.8% (H1 2008: 23.86 cents)
·   Cash and bank balances as at 30 June 2009 of US$ 87.5 million (31 December 2008: US$ 97.8 million)
·   Order book as at 31 July 2009 of US$ 417 million (August 2008: US$ 818 million) 
Adjusted Results*
The results for the six month period ended 30 June 2009, are as follows:
·   Operating profit: US$ 31.2 million down 38.3% (H1 2008: US$ 50.5 million*)
·   Net profit: US$ 31.6 million down 39.6% (H1 2008: US$ 52.3 million*)
·   EPS (fully diluted): 15.80 cents down 39.5% (H1 2008: 26.11 cents*)
 *  There were no exceptional charges for the six month period ended 30 June

2009 (H1 2008: stated before reflecting exceptional charges for share based

payments of US$ 4.1 million granted to certain directors and selected

management personnel pre IPO, and before reflecting various legal and

professional charges of US$ 0.5 million incurred in connection with the

admission of Lamprell plc to the Main Market of the London Stock Exchange

plc in November 2008). 
    

H1 2009 OPERATIONAL HIGHLIGHTS

·   The Kraken and Leviathan new build self propelled liftboats for Seajacks International Limited were completed in March and July 2009 respectively, on time and on budget.

·   The Al Ghallan jackup drilling rig refurbishment project for National Drilling Company (*NDC*) was completed in March 2009. This project, with a contract value of US$ 59 million is part of the NDC strategic Rig Integrity Assurance Program (*RIAP*), and is the second contract awarded under the RIAP program following the successful completion of the NDC Junana upgrade project in 2007.

·   The Offshore Freedom new build jackup rig for Scorpion Offshore Limited was completed in April 2009, on time and on budget.

    

CURRENT MAJOR EPC PROJECTS 

*     The construction phase of the Offshore Mischief for Scorpion Offshore Limited has significantly advanced and is now planned to be completed during Q2, 2010.

*     The new build jackup rig project with Riginvest GP ("Riginvest") for the construction and delivery of a completely outfitted and equipped, LeTourneau designed, self-elevating Mobile Offshore Drilling Platform of a Super 116E (Enhanced) Class design has been delayed whilst we continue discussions with Riginvest regarding various financing options that they are exploring. 

* The construction phase of the lump sum turnkey construction contract with BassDrill Alpha Ltd ("BassDrill") for a self erecting tender assist drilling unit with living accommodation and a modular mast equipment package, is progressing on target for completion in October 2009. Lamprell has recently entered into detailed discussions with BassDrill with regard to agreeing an extended payment plan in connection with the construction of the unit. 

Commenting on the half year results Nigel McCue, Chief Executive Officer, Lamprell said: 

"The first six months of 2009 has been a busy period for Lamprell during which we have delivered our first three Engineering, Procurement and Construction ("EPC") contracts all of which have been delivered to our customers on time and on budget. Executing our work to the highest standard, both on time and on budget, remains central to our business and we believe it is the platform for the future growth of our business. 

However, these remain challenging times for the sector as a whole and, as expected, we continue to see a lower level of rig refurbishment and offshore construction activity, mainly in the area of Floating Production, Storage and Offloading ("FPSO") contract awards, than in the same period last year. More positively, we continue to see a high level of interest for the wide spectrum of new build services we offer and our total proposals pipeline is currently at the highest level in the history of the Company.

We continue to review the impact of the on-going prevailing market conditions on our business in the short term and we remain focused on achieving cost savings and managing our business as efficiently as possible, in the light of our flexible business model, whilst maintaining our ability to take opportunities when they arise. Although the market today presents challenges to the Group, we are confident that our long term prospects remain promising."   

Enquiries:
 Lamprell plc                          +44 (0) 207 920 2347
 Jonathan Silver, Chairman
 Nigel McCue, Chief Executive Officer
 Scott Doak, Chief Financial Officer

 M:Communications, London 
 Patrick d'Ancona                      +44 (0) 207 920 2347
 Georgina Briscoe                      +44 (0) 207 920 2348

Chairman's Statement

Performance in the first half of 2009 has been in line with management expectations. During that period the Company has worked on fourteen upgrade and refurbishment projects at our Sharjah and Hamriyah facilities including the Al Ghallan for the National Drilling Company ("NDC") and the Roy Rhodes for Noble International LTD. The Al Ghallan has been completed and is now working in the Zadco field offshore Abu Dhabi and work on the Noble Roy Rhodes, which includes the complete refurbishment of the 120 person living quarters and the upgrade and refurbishment of the drill floor and cantilever, will be completed in the third quarter of 2009. Jebel Ali work is proceeding on the Saipem Livorno process modules for Saipem SPA and the spud can extensions for Master Marine ASA and our new Sattahip facility in Thailand has secured and worked on a number of jackup rigs in the period.

During the first half of 2009, Lamprell has also successfully delivered the Company's first Engineering, Procurement and Construction ("EPC") projects, including the new build self propelled liftboats, the Seajacks Kraken in March 2009 and the Seajacks Leviathan in July 2009, for Seajacks International Limited ("Seajacks"), and the Scorpion Offshore Freedom for Scorpion Offshore Ltd ("Scorpion") in April 2009. Work continues on the remaining EPC projects, the jackup rig, the Scorpion Offshore Mischief, as well as the BassDrill Alpha Ltd ("BassDrill") tender assist barge.

The Company remains in discussion with Riginvest GP ("Riginvest") regarding financing options of the LeTourneau Super 116E jackup drilling rig project and has recently entered into detailed discussions with BassDrill with regard to agreeing an extended payment plan in connection with the construction of the BassDrill tender assist barge. 

As foreshadowed in earlier announcements, we have seen, during the first half of 2009, a lower level of activity in the rig refurbishment market. We are seeing a consistent number of rigs as in the prior period but a lower level of activity as drilling contractors reduce non-essential expenditure reflecting the current uncertain market conditions.  In addition, no new FPSO related contracts have been signed. This has reinforced our view that this is as a result of the general reduction of capex budgets and the weaker oil price during H1 2009. Nevertheless, the Company remains confident in the long term prospects and viability of this sector.

Encouragingly, we have seen a high level of interest for the wide spectrum of new build services we offer and our total proposals pipeline is currently at the highest level in the history of the Company. This proposals pipeline includes levels of enquiries for our services in all sectors of our business and whilst recognising the short term weakening of the rig refurbishment market, the Middle East remains a key market for jack-up rigs, which will require refurbishment over their working lives.

A considerable amount of time continues to be devoted to the effective management of the Company's cost base, the results of which are now being felt, including a large reduction both in the number of labour supply personnel employed and in the amount of hired equipment being utilised. Compared to the prior year, labour supply cost has reduced by 36% and equipment hire by 31%. In addition, the procurement group continues to establish a number of strategic agreements with various suppliers and this initiative is expected to deliver significant cost savings in the remainder of 2009 and beyond.

The construction of the 250,000m² facility in the Hamriyah Free Zone continues. The dredging work and the 1.25km quay wall both are now complete, along with several fabrication areas. The construction of the main office, client office and main workshops are ongoing and remain on track for completion in line with current schedules. The facility was officially opened on 28 April 2009 at the time of the delivery of the Offshore Freedom. We saw the first jackup drilling rig begin refurbishment work at the quayside in the same month and we currently have five rigs in this facility. The Company continues to explore opportunities which can be considered now that the new facility is operational, which could not previously be exploited by the Company, to secure additional high value projects with increased revenue visibility. These opportunities include work relating to semi-submersible drilling rigs, both refurbishment and new construction, and the refurbishment of drillships.

As a result of the current uncertain economic conditions the Directors do not recommend the payment of an interim dividend. The payment of a final dividend will be considered at the year end taking account of trading conditions at that time.

Our track record of on time and on budget project execution remains central to our offering and underpins our confidence in our long term prospects, which remain promising as we seek to build a strong platform for future growth. 

Market Overview

The opportunity to secure EPC contracts has been limited during the first half of 2009 and despite considerable proposals activity, no new orders have been placed in this period. This situation predominately reflects the lower oil price and the difficulties many potential clients face to obtain finance for their projects. Notwithstanding the absence of large awards, bid activity has been exceptionally high in the year to date and our bidding pipeline currently exceeds US$ 3.9 billion, covering the full range of Lamprell's business segments.

Activity in the jackup upgrade and refurbishment segment has been impacted by operators who have not renewed some rig contracts. As a result, drilling contractors are competing for new contracts and this cycle is likely to continue throughout 2009 whilst operators wait for rig rates to stabilise. During this period, some drilling contractors have adopted a policy of deferring maintenance expenditure on their assets until contracts are secured, whilst others are seizing the opportunity to refurbish their rigs.

From a new build perspective, we continue to receive enquiries for drilling rigs. These enquiries are predominately from national oil companies and we remain cautiously optimistic that awards will be made in the coming months.

Following the successful delivery of two lift boats to Seajacks International Limited there is significant interest in similar units to operate in the wind farm installation sector and this segment of our business has been identified as a potential area for future growth.

Lamprell also continues to develop opportunities in new business areas such as the refurbishment and construction of semi-submersible drilling rigs and drillship refurbishment, which will be carried out at our new Hamriyah Free Zone Facility.

Outlook 

At 31 July 2009 the total order book was approximately US$ 417 million and extends into 2011. This provides forward revenue visibility and, in addition, a significant number of potential new contracts have been identified as likely prospects for Lamprell across all our business activities.  

The contracted order book, combined with the potential projects, gives the Board confidence of meeting management expectations in the second half of 2009 and beyond. 

Risks and uncertainties

A number of potential risks and uncertainties exist which could have a material impact on the Group's performance over the second half of the year and which would cause actual results to differ materially from expected performance. The Directors do not consider that the principal risks and uncertainties have changed since the publication of the Group's Annual Report for 2008. An explanation of all risks and those detailed below, and the business strategies that Lamprell uses to manage and mitigate those risks and uncertainties, can be found on pages 28 and 29 of the Annual Report, which is available for download at www.lamprell.com.
       

The Company's 2008 Annual Report made reference to the principal risks and uncertainties arising from the decline in the level of expenditure by oil and gas companies, counterparty credit risk, the dependence of the Group's growth on the availability of financing both for its own future projects and for its customers, the inability of the Company to use equipment purchased in advance should a customer not be found for such equipment, the Company's dependence upon a small number of contracts and customers, and the Company operating on a project-by-project basis and not having long term commitments with the majority of its customers, which may cause its visible order book to fluctuate significantly. 

In particular, the Company remains in discussion with Riginvest regarding financing options of the LeTourneau Super 116E jackup drilling rig project and has recently entered into detailed discussions with BassDrill with regard to agreeing an extended payment plan in connection with the construction of the BassDrill tender assist barge. 

Operating Review

Lamprell's revenue in the first half of 2009 has been generated through the execution of multiple projects across all Lamprell's operating segments. These projects have been executed with a high level of focus on safety and on ensuring that projects are completed safely, on time, on budget, to high quality standards. 

Whilst ensuring successful project execution there has been a significant focus on reducing operating costs. Consequently, the Company's operations have been reviewed and a number of aspects of those operations have been streamlined to improve efficiency. This process will continue throughout 2009.

Upgrade and refurbishment of offshore jackup rigs

During the first six months of 2009, Lamprell has executed fourteen upgrade and refurbishment projects at our Sharjah and Hamriyah facilities. Notable projects have included the Ensco Rig 53 for Ensco Oceanics International Company, the Al Ghallan for the National Drilling Company ("NDC") and the Roy Rhodes for Noble International LTD. The Ensco 53 was completed in the second quarter of 2009 and has commenced a contract for British Gas in India. The Al Ghallan contract was executed as part of the NDC Rig Integrity Assurance Program ("RIAP") and the rig is now working in the Zadco field offshore Abu Dhabi. The Noble Roy Rhodes work scope includes the complete refurbishment of the 120 person living quarters and the upgrade and refurbishment of the drill floor and cantilever, and this project will be completed in the third quarter of 2009. 

Engineering, Procurement and Construction

Throughout the first half of the year, Lamprell continued the construction of a number of major EPC new build projects at both our Hamriyah Free Zone and Jebel Ali facilities.

S116E jackup drilling rigs

The construction of our first LeTourneau Super 116E jackup drilling rig, the Offshore Freedom for Scorpion Freedom Ltd ("Scorpion"), was a focal point of activity at our Hamriyah facility. The rig was successfully delivered to Scorpion on 27 April 2009 and is now working for the Al-Khafji Joint Operation in the Saudi Arabia and Kuwait ex neutral zone.

The hull assembly process for the Scorpion Offshore Mischief is now well advanced and the hull will be launched in the fourth quarter of 2009. Thereafter the rig outfitting will be completed alongside our Hamriyah quay ready for delivery of the rig in the second quarter of 2010.

The detailed engineering and the procurement of bulk materials and major equipment for a S116E jackup for Riginvest is now well advanced. The hull construction process has temporarily been suspended whilst we work with Riginvest to secure additional finance or a buyer for the rig. It is anticipated that construction work will recommence on this project in the fourth quarter of 2009.

Liftboats

The Jebel Ali facility has been busy in the first six months of 2009 and this high level of activity has been partly attributable to the construction of two harsh environment special purpose self propelled four legged jackup vessels for Seajacks International Ltd ("Seajacks"). The Seajacks Kraken and Seajacks Leviathan have now both been successfully completed on time and on budget. 

Tender Assist Drilling Units

The first self-erecting tender assist drilling unit for BassDrill Ltd is scheduled to be delivered in the fourth quarter of 2009 and work on both the vessel and modular mast equipment package has been underway throughout 2009. In June 2009, the project celebrated the significant achievement of utilising one million man-hours without a reportable safety incident.

New build construction for the offshore oil and gas sector

In addition to the EPC projects ongoing at our Jebel Ali facility in the first half of 2009 work is also ongoing on a number of fabrication projects, including two FPSO process modules for Saipem S.p.A. and spud can extensions for Master Marine ASA.

Oilfield engineering services

Throughout 2009, our oilfield engineering facility has focused on the core activities of land rig upgrade and refurbishment, land camp related projects and the inspection and overhaul of mechanical and rotary equipment. A wide range of projects have been executed for multiple clients including Nabors Drilling International Ltd and the Egyptian Drilling Company. 

In addition, Lamprell has completed and delivered three new build land rigs and a fourth rig is nearing completion and will be delivered in the third quarter of 2009. All four rigs were built for LeTourneau Technologies Drillings Systems Inc.

Thailand

The Sattahip facility is now fully operational and revenue has been generated through jackup upgrade and refurbishment projects. Management now feel confident to execute larger rig refurbishment projects and offshore fabrication works at Sattahip.

Operational developments

Lamprell has continued the program of organic investment in facilities and equipment throughout 2009, with the objective of increasing productivity and capacity.

The marine work at the new Hamriyah Free Zone facility is now complete and the facility is operational. Rig upgrade and refurbishment projects are ongoing and the facility is ready to undertake large EPC projects. Construction work on the offices, workshops, stores and other parts of the infrastructure continue, although the schedule for this work has been extended into 2010. 

In all facilities, we continue to analyse the utilisation of all construction equipment and further investments will continue as and when required to ensure that high levels of operational efficiency are maintained.

We believe the benefits of these investments will support the ongoing development of our turnover throughout the remainder of 2009 and beyond and further investments will be made on an ongoing basis.

Financial Review

Lamprell has experienced a busy first half year for the period ended 30 June 2009 and the results of its activities are set out in summary below.

Results for the six month period from operations
        
                     2009 (US$m)  2008 (US$m)*   Change
 Revenue                   259.9         318.2  (18.3)%
 Gross profit               48.2          65.8  (26.7)%
 EBITDA                     37.7          55.1  (31.6)%
 EBITDA margin             14.5%         17.3%
 Operating profit           31.2          50.5  (38.3)%
 Operating margin          12.0%         15.9%
 Net profit                 31.6          52.3  (39.6)%
 Net margin                12.1%         16.4%
 Earnings per share       15.80c        26.11c  (39.5)%

 *  There were no exceptional charges for the six month period ended 30 June

2009 (H1 2008: stated before reflecting exceptional charges for share based

payments of US$ 4.1 million granted to certain directors and selected

management personnel pre IPO, and before reflecting various legal and

professional charges of US$ 0.5 million incurred in connection with the

admission of Lamprell plc to the Main Market of the London Stock Exchange

plc in November 2008). 

Group revenue for the period to 30 June 2009 decreased by 18.3% to US$ 259.9 million (H1 2008: US$ 318.2 million). The decrease was largely driven by a reduction in the level of activity of offshore construction, based in Jebel Ali, which was also seen in the second half of 2008, and also a decrease in jackup rig upgrade and refurbishment activities. Revenue generated from EPC projects comprising the new build jackups, liftboats and a self erecting tender assist drilling unit increased during the period largely as a result of the number of projects being undertaken during the first half of 2009.

Gross profit margin decreased from 20.7% for the period to 30 June 2008 to 18.6% for the period to 30 June 2009. This decrease is largely due to the mix in revenue for the period, specifically a lower level of higher margin rig refurbishment and offshore construction activity. In addition, the margin on rig refurbishment activity was seen to decrease as a result of the scopes of work being undertaken and generally tighter market conditions. The gross margin on EPC projects which are generally lower as a result of a higher level of procurement, both in respect of material purchases and sub-contractor work, improved in the period largely reflecting the release of positive cost contingencies mainly on the completion of certain projects.

Operating profit for the period decreased by 38.3% to US$ 31.2 million (2008: US$ 50.5 million before exceptional charges) largely reflecting the reduced gross profit. There are no exceptional costs in the current period and in the prior period these costs reflected share based payments of US$ 4.1 million granted to selected directors and employees pre IPO and also reflect various legal and professional charges amounting to US$ 0.5 million, incurred in connection with the admission of Lamprell plc to the Main Board of the London Stock Exchange plc in November 2008. The operating margin of 12.0% reflects a decrease from the adjusted operating margin (before exceptional charges) in the same prior year six month period of 15.9% largely in line with the decrease in gross margin.

The net profit decreased by 39.6% to US$ 31.6 million (H1 2008: US$ 52.3 million before exceptional charges), in line with the operating profit and also reflects the decrease in interest income in the current period to US$ 0.8 million (H1 2008: US$ 1.7 million).

Taxation

The Company, which is incorporated in the Isle of Man, has no income tax liability for the period ended 30 June 2009 as it is taxable at 0% in line with local Isle of Man tax legislation. The Group is not currently subject to income tax in respect of its operations carried out in the United Arab Emirates, and does not anticipate any liability to income tax arising in the foreseeable future. On 4 December 2008, Lamprell Asia Limited, the Company's wholly owned subsidiary in Thailand, was granted Board of Investment privileges which allows it to operate with a tax exempt status for a period of up to eight years.

Earnings per share

Fully diluted earnings per share for the six month period to 30 June 2009 decreased to 15.80 cents per share (H1 2008: 26.11 cents before exceptional charges) reflecting primarily the reduced profit of the Group for the period under review.  

Operating cash flow and liquidity

The Group's net cash flow from operating activities for the six month period was US$ 18.1 million (H1 2008: US$ 28.2 million). The net cash flow from operations was lower than the prior year six month period reflecting decreased profit for the period and movements in working capital, largely reflecting a decrease in trade and other receivables and trade and other payables, offset by an increase in inventories.

Investing activities for the period absorbed US$ 13.0 million (H1 2008: US$ 9.8 million) and mainly comprise investment in property, operating plant and equipment, largely investment in the new Hamriyah facility, amounting to US$ 13.8 million (H1 2008: US$ 16.6 million) offset by interest income for the period amounting to US$ 0.8 million (H1 2008: US$ 1.7 million).

Net cash used in financing activities amounted to US$ 19.1 million (H1 2008: US$ 25.3 million) and mainly reflected the final dividend payment for the year ended 31 December 2008 of US$  6.3 million and also the reduction in bank borrowings of US$ 11.2 million.

Jonathan Silver

Chairman 

Lamprell plc

26 August 2009

Balance sheet 

                                                      At 30 June  At 31 December
                                               Note         2009            2008
                                                         USD'000         USD'000

 ASSETS
 Non-current assets
 Property, plant and equipment                 7          99,735          92,354
 Intangible asset                              8           1,356           1,400

                                                         101,091          93,754

 Current assets
 Inventories                                              48,896          20,506
 Trade and other receivables                             185,988         289,812
 Derivative financial instruments                              -              50
 Cash and bank balances                        9          87,523          97,824

                                                         322,407         408,192

 Total assets                                            423,498         501,946

 EQUITY AND LIABILITIES
 Capital and reserves 
 Share capital                                 11         18,682          18,682
 Legal reserve                                 12             29              29
 Merger reserve                                13       (22,422)        (22,422)
 Translation reserve                                          50            (47)
 Retained earnings                                       240,320         216,012

 Total equity                                            236,659         212,254

 Non-current liability
 Provision for employees' end of service       14         14,470          14,329
 benefits

 Current liabilities
 Trade and other payables                                167,511         263,439
 Borrowings                                    10          4,858          11,924

                                                         172,369         275,363

 Total liabilities                                       186,839         289,692

 Total equity and liabilities                            423,498         501,946

Statement of comprehensive income

                                                        Six months ended 30 June
                                                  Note         2009         2008
                                                            USD'000      USD'000

 Revenue                                                    259,907      318,241
 Cost of sales                                            (211,685)    (252,420)

 Gross profit                                                48,222       65,821

 Selling and distribution expenses                            (818)      (1,018)

 General and administrative expenses:
 - share based payments                                       (737)      (4,626)
 - others                                                  (15,476)     (15,277)
                                                           (16,213)     (19,903)

 Other gains                                                     15        1,141

 Operating profit                                            31,206       46,041

 Interest expense                                             (477)            -
 Interest income                                                823        1,734

 Profit for the period attributable to equity                31,552       47,775
 holders of the Company 

 Other comprehensive income:
 Currency translation differences                                97            -

 Total comprehensive income for the period                   31,649       47,775
 attributable to equity holders of the Company  

 Earnings per share attributable to equity           5
 holders of the Company
 Basic                                                       15.83c       23.87c

 Diluted                                                     15.80c       23.86c

Statement of changes in equity 

    
                                  Note  Sharecapital  Legalreserve  Mergerreserve  Translationreserve  Retainedearnings     Total
                                             USD*000       USD*000        USD*000             USD*000           USD*000   USD*000
                                                                                                                                 
 At 1 January 2008                            18,654            24       (22,422)                   -           162,506   158,762
 Profit for the period                             -             -              -                   -            47,775    47,775
 Total                                             -             -              -                   -            47,775    47,775
   comprehensive
   income for the
   period ended

30 June 2008
 Transactions with owners:                                                                                                       
 Share based payments:                                                                                                           
 * shares issued during the                       28             -              -                   -              (28)         -
 period
 * value of services                               -             -              -                   -             4,626     4,626
 provided
 Treasury shares purchased          11             -             -              -                   -             (942)     (942)
 Transfer to legal reserve                         -             1              -                   -               (1)         -
 Dividends                          16             -             -              -                   -          (24,525)  (24,525)
                                                  28             1              -                   -          (20,870)  (20,841)
 At 30 June 2008                              18,682            25       (22,422)                   -           189,411   185,696
                                                                                                                                 
 Profit for the period                             -             -              -                   -            37,680    37,680
  Other comprehensive income:                                                                                                    
  Currency    translation                          -             -              -                (47)                 -      (47)
 difference
 Total                                             -             -              -                (47)            37,680    37,633
   comprehensive
   income for the
   period ended
   31 December
   2008
 Transactions with owners:                                                                                                       
 Share based payments:                                                                                                           
  * value of services provided                     -             -              -                   -             3,433     3,433
 Treasury shares purchased          11             -             -              -                   -           (1,683)   (1,683)
 Transfer to legal reserve                         -             4              -                   -               (4)         -
 Dividends                          16             -             -              -                   -          (12,825)  (12,825)
                                                   -             4              -                   -          (11,079)  (11,075)
 At 31 December 2008                          18,682            29       (22,422)                (47)           216,012   212,254
 At 1 January 2009                            18,682            29       (22,422)                (47)           216,012   212,254
 Profit for the period                             -             -              -                   -            31,552    31,552
   Other                                                                                                                         
   comprehensive
   income:
   Currency                                                                                                                      
   translation                                                                                                                   
   difference                                      -             -              -                  97                 -        97
 Total                                             -             -              -                  97            31,552    31,649
   comprehensive
   income for the
   period ended

30 June 2009
 Transactions with                                                                                                               

owners:                                                                                                                      
 Share based payments:                                                                                                           
 * shares issued during the                        -             -              -                   -                 -         -
 period
 * value of services                                                                                                             
   provided                                        -             -              -                   -               737       737
 Treasury shares                                                                                                                 
   purchased                        11             -             -              -                   -           (1,697)   (1,697)
 Transfer to legal                                 -             -              -                   -                 -         -
   reserve
 Dividends                          16             -             -              -                   -           (6,284)   (6,284)
                                                   -             -              -                   -           (7,244)   (7,244)
 At 30 June 2009                              18,682            29       (22,422)                  50           240,320   236,659

    
      

Statement of cash flows 

                                                Note  Six months ended 30 June
                                                             2009         2008
                                                          USD'000      USD'000
 Operating activities
 Profit for the period                                     31,552       47,775
 Adjustments for:
 Share based payments - value of services                     737        4,626
 provided
 Unrealised fair value gain on derivative                       -        (329)
 financial instruments
 Depreciation                                      7        6,432        4,488
 Amortisation of intangible asset                  8           44           43
 Loss/(profit) on disposal of property, plant                   7         (63)
 and equipment
 Provision for slow moving and obsolete                       151          112
 inventories
 Provision for impairment of trade                 6            -            4
 receivables, net
 Provision for employees' end of service          14        1,815        1,549
 benefits 
 Interest expense                                             477            -
 Interest income                                            (823)      (1,734)

 Operating cash flows before payment of                    40,392       56,471
 employees' 
 end of service benefits and changes in
 working capital

 Payment of employees' end of service benefits    14      (1,674)        (380)

 Changes in working capital:
 Inventories before movement in provision                (28,541)      (2,370)
 Trade and other receivables before movement              103,824     (51,083)
 in provisionfor impairment of trade
 receivables
 Derivative financial instruments                              50          608
 Trade and other payables excluding unpaid               (95,955)       24,995
 dividend

 Net cash generated from operating activities              18,096       28,241

 Investing activities
 Payments for property, plant and equipment        7     (13,826)     (16,578)
 Proceeds from sale of property, plant and                     37           70
 equipment
 Interest income                                              823        1,734
 Movement in margin deposits                       9         (49)        4,954

 Net cash used in investing activities                   (13,015)      (9,820)

 Financing activities
 Treasury shares purchased                        11      (1,697)        (942)
 Dividends paid                                   16      (6,257)     (24,322)
 Repayment of borrowings including interest              (11,170)            -
 paid

 Net cash used in financing activities                   (19,124)     (25,264)

 Net decrease in cash and cash equivalents               (14,043)      (6,843)

 Cash and cash equivalents, beginning of the       9       90,225      149,264
 period
 Exchange rate translation                                     66            -

 Cash and cash equivalents, end of the period      9       76,248      142,421

1    Legal status and activities

Lamprell plc ("the Company") was incorporated and registered on 4 July 2006 in the Isle of Man as a public company limited by shares under the Isle of Man Companies Acts with the registered number 117101C. The Company acquired 100% of the legal and beneficial ownership in Lamprell Energy Limited ("LEL") from Lamprell Holdings Limited ("LHL"), under a share for share exchange agreement dated 25 September 2006 and this transaction was accounted for in the consolidated financial statements using the uniting of interests method. The Company was admitted to the Alternative Investment Market ("AIM") of the London Stock Exchange with effect from 16 October 2006. From 6 November 2008 the Company moved from AIM and was admitted to trading on the London Stock Exchange ("LSE") plc's main market for listed securities. The address of the registered office of the Company is 15-19 Athol Street, Douglas, Isle of Man and the Company is managed from the United Arab Emirates ("UAE"). The address of the principal place of the business is PO Box 5427, Dubai, UAE.

The principal activities of the Company and its subsidiaries (together referred to as "the Group") are: the upgrade and refurbishment of offshore jackup rigs, fabrication, assembly and new build construction for the offshore oil and gas sector, including jackup rigs, Floating Production, Storage and Offloading ("FPSO") and other offshore and onshore structures, oilfield engineering services, including the upgrade and refurbishment of land rigs. 

The Company has either directly or indirectly the following subsidiaries:

    
 Name of the subsidiary          Percentageoflegalown            Percentage  CountryofIncorporati
                                               ership  ofbeneficialownershi                    on
                                                                          p
                                                    %                     %                      
                                                                                                 
 Lamprell Energy Limited                          100                   100           Isle of Man
 Lamprell Dubai LLC (*LD*)                        49*                   100                   UAE
 Lamprell Sharjah WLL (*LS*)                      49*                   100                   UAE
 Maritime Offshore Limited                        100                   100           Isle of Man
 (*MOL*)
 Maritime Offshore                                100                   100           Isle of Man
 ConstructionLimited (*MOCL*)
 International Inspection                         100                   100           Isle of Man
 ServicesLimited (*Inspec*)
 Cleopatra Barges Limited                         100                   100        British Virgin
 (*CBL*)                                                                                  Islands
 Lamprell plc employee benefit                    100                     *        Unincorporated
 trust(*EBT*)
 Jebel Ali Investments Limited                    100                   100        British Virgin
 (*JIL*)                                                                                  Islands
 Lamprell Energy FZCO                             90+                   100                   UAE
 (*LEFZCo*)(previously known as
 Ahbab FZCo)
 Lamprell Asia Limited                          100++                   100              Thailand
 (*LAL*)(incorporated on 14 May
 2008)

 *   The balance of 51% in each case is registered in the name of a UAE

National who has assigned all the economic benefits attached to his

shareholding to the Group entity. LEL has the power to exercise control

over the financial and operating policies of the entities incorporated in

the UAE through management agreements and accordingly, these entities are

consolidated as wholly owned subsidiaries in this condensed consolidated

interim financial information. The UAE National shareholders of these

entities receive sponsorship fees from the Group (Note 15).

 *   The beneficiaries of the EBT are the employees of the Group.

 +   A free zone company ("FZCo") is required to have a minimum of two

shareholders and consequently the balance of 10% is held by an employee

of LEL in trust for the beneficial interest of the Group.

 ++  A Thailand registered company is required to have a minimum of three

shareholders and consequently of the total 867,000 shares, 2 shares are

held by employees of the Lamprell Group in trust for the beneficial

interest of the Group and the balance of 866,998 shares are held by LE

FZCo.  

2    Summary of significant accounting policies 

2.1    Basis of preparation

This condensed consolidated interim financial information for the six months ended 30 June 2009 has been prepared in accordance with the Disclosure and Transparency Rules ("DTR") of the Financial Services Authority ("FSA") and with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" as adopted by the European Union ("EU"). The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008, which have been prepared in accordance with IFRSs as adopted by the EU.

2.2    Accounting policies

Except as discussed below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2008, as described in those financial statements. The annual financial statements for the year ended 31 December 2008 are available on the Company's website (www.lamprell.com).

The preparation of condensed interim financial information requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant, are disclosed in Note 3.    

The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2009. 

IAS 1 (revised), 'Presentation of Financial Statements'. The revised standard prohibits the presentation of items of income and expenses (that is 'non-owner changes in equity') in the statement of changes in equity, requiring 'non-owner changes in equity' to be presented separately from owner changes in equity. All 'non-owner changes in equity' are required to be shown in a performance statement. Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). The Group has elected to present one performance statement: a condensed consolidated interim comprehensive income statement. The interim financial statements have been prepared under the revised disclosure requirements. 

IFRS 8, 'Operating Segments'. IFRS 8 replaces IAS 14, 'Segment Reporting'. It requires a 'management approach' under which segment information is presented on the same basis as that used for internal reporting purposes. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Executive Directors who make strategic decisions. Note 4 provides further details and disclosures relating to segment reporting.

IFRS 2 (Amendment), 'Share-Based Payment'. The amended standard deals with vesting conditions and cancellations. It clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. These features would need to be included in the grant date fair value for transactions with employees and others providing similar services; they would not impact the number of awards expected to vest or valuation thereof subsequent to grant date. All cancellations, whether by the entity or by other parties, should receive the same accounting treatment. The Group has applied the amendment and it had no material impact on the financial statements.

The following new standards, amendments to standards and interpretations are mandatory for the first time for the financial year beginning 1 January 2009, but are not currently relevant for the Group. 

IFRIC 13, 'Customer Loyalty Programmes'. 

IFRIC 15, 'Agreements for the Construction of Real Estate'. 

IFRIC 16, 'Hedges of a Net Investment in a Foreign Operation'. 

IAS 39 (amendment), 'Financial Instruments: Recognition and Measurement'. 

The following new standards, amendments to standards and interpretations have been issued, but are not effective for the financial year beginning 1 January 2009 and have not been early adopted: 

IFRS 3 (revised), 'Business Combinations' and Consequential Amendments to IAS 27, 'Consolidated and Separate Financial Statements', IAS 28, 'Investments in Associates' and IAS 31, 'Interests in Joint Ventures', are effective prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009. The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through the statement of comprehensive income. There is a choice on an acquisition-by-acquisition basis to measure the minority interest in the acquiree either at fair value or at the minority interest's proportionate share of the acquiree's net assets. All acquisition-related costs should be expensed. The Group will apply IFRS 3 (revised) to all business combinations from 1 July 2009. 

IFRIC 17, 'Distributions of Non-cash Assets to Owners', effective for annual periods beginning on or after 1 July 2009. This is not currently applicable to the Group, as it has not made any non-cash distributions. 

IFRIC 18, 'Transfers of Assets from Customers', effective for transfers of assets received on or after 1 July 2009. This is not relevant to the Group, as it has not received any assets from customers. 

3    Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

3.1    Critical accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are as follows:

Revenue recognition

The Group uses the percentage-of-completion method in accounting for its contract revenue. Use of the percentage-of-completion method requires the Group to estimate the stage of completion of the contract to date as a proportion of the total contract work to be performed in accordance with the Group's accounting policy.  As a result, the Group is required to estimate the total cost to completion of all outstanding projects at each period end. The application of a 10% sensitivity to management estimates of the total costs to completion of all outstanding projects at the period end would result in the revenue and profit increasing by USD 8.1 million (H1 2008: USD 12.4 million) if the total costs to completion are decreased by 10% and the revenue and profit would decrease by USD 7.5 million (H1 2008: USD 11.2 million) if the total costs to completion are increased by 10%.

Employees' end of service benefits

The rate used for discounting the employees' post employment defined benefit obligation should be based on market yields on high quality corporate bonds. In countries where there is no deep market in such bonds, the market yields on government bonds should be used. In the UAE there is no deep market either for corporate or government bonds and therefore, the discount rate has been estimated using the US government bond rates as a proxy adjusted for the credit rating of the UAE and other differences noted in the lending rates of the UAE. On this basis the discount rate applied was 6%. If the discount rate used were to differ by 0.5 points from management's estimates, the carrying amount of the employees' end of service benefits provision at the balance sheet date would be an estimated USD 434,000 (2008: USD 431,000) lower or USD 579,000 (2008: USD 574,000) higher. 

4    Segment information 

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Directors who make strategic decisions. The Executive Directors review the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.

The Executive Directors consider the business mainly on the basis of the facilities from where the services are rendered. Management considers the performance of business from Sharjah (SHJ), Hamriyah (HAM), Jebel Ali (JBA) and Thailand (THL) and also of the performance of Oil Field Engineering (OFE) and International Inspection Services Limited (Inspec). 

SHJ, HAM, JBA and OFE meet all the aggregation criteria required by IFRS 8 and are reported as a single segment (Segment A). Services provided from Inspec and THL do not meet the quantitative thresholds required by IFRS 8, and the results of the operations are included in "all other segments" column. 

The reportable operating segments derive their revenue from the upgrade and refurbishment of offshore jack up rigs, fabrication, assembly and new build construction for the offshore oil and gas sector, including Floating Production, Storage and Off-loading ("FPSO") and other offshore and onshore structures, oilfield engineering services, including the upgrade and refurbishment of land rigs. 

                                  Segment A  All other    Total
                                              segments
                                    USD'000    USD'000  USD'000
 Period ended 30 June 2009

 Total segment revenue              253,147      7,558  260,705
 Inter-segment revenue                    -      (798)    (798)

 Revenue from external customers    253,147      6,760  259,907

 Gross profit                        61,967      2,019   63,986

 Period ended 30 June 2008

 Total segment revenue              313,116      6,136  319,252
 Inter-segment revenue                (605)      (406)  (1,011)

 Revenue from external customers    312,511      5,730  318,241

 Gross profit                        80,326      1,695   82,021

Sales between segments are carried out at agreed terms. The revenue from external parties reported to the Executive Directors is measured in a manner consistent with that in the income statement.

The Executive Directors assess the performance of the operating segments based on a measure of gross profit. The staff, equipment and certain subcontract costs are measured based on standard cost. The measurement basis excludes the effect of the common expenses for yard rent, repairs and maintenance and other miscellaneous expenses. 

The reconciliation of the gross profit is provided as follows:

    
                                                      Six months ended 30 June
                                                             2009         2008
                                                          USD*000      USD*000
 Gross operating profit for the reportable segments        61,967       80,326
 as   reported to the Executive Directors
 Gross profit for other segments as reported to             2,019        1,695
 theExecutive Directors
 Unallocated:                                                                 
 Under-absorbed employee and equipment costs              (8,102)      (7,981)
 Repairs and maintenance                                  (2,111)      (3,933)
 Yard rent                                                (1,744)      (1,358)
 Others                                                   (3,807)      (2,928)
                                                                              
 Gross profit                                              48,222       65,821
                                                                              
 Selling and distribution expenses                          (818)      (1,018)
 General and administrative expenses                     (16,213)     (19,903)
 Other gains                                                   15        1,141
 Interest expense                                           (477)            -
 Interest income                                              823        1,734
                                                                              
 Net profit                                                31,552       47,775
                                                                              

Information about segment assets and liabilities is not reported to or used by the Executive Directors and accordingly no measures of segment assets and liabilities are reported.

5    Earnings per share 

    
                                                      Six months ended 30 June
                                                            2009          2008
                                                         USD*000       USD*000
 The calculations of earnings per share are                                   
 basedon the following profit and numbers of
 shares
                                                                              
 Profit for the period                                    31,552        47,775
                                                                              
 Weighted average number of shares for basic         199,332,193   200,113,784
 earningsper share
                                                                              
 Adjustments for:                                                             
 - Assumed exercise of free share awards                 318,613       148,658
 - Assumed vesting of executive share options             67,496             -
                                                                              
 Weighted average number of shares for               199,718,302   200,262,442
 dilutedearnings per share
                                                                              
 Earnings per share:                                                          
 Basic                                                    15.83c        23.87c
                                                                              
 Diluted                                                  15.80c        23.86c
                                                                              

6    Operating profit

Operating profit is stated after charging:

    
                                                      Six months ended 30 June
                                                             2009         2008
                                                          USD*000      USD*000
                                                                              
 Depreciation                                               6,432        4,488
                                                                              
 Operating lease rentals * land and buildings              11,657        4,849
                                                                              
 Provision for impairment of trade receivables                  -           11
 Release of provision for impairment of trade                   -          (7)
 receivables
                                                                -            4
                                                                              

7    Property, plant and equipment 

                                                USD'000

 Opening net book amount at 1 January 2008       47,766
 Additions                                       16,578
 Net book value of disposals                        (7)
 Depreciation                                   (4,488)

 Closing net book amount at 30 June 2008         59,849

 Additions                                       37,866
 Net book value of disposals                       (93)
 Depreciation                                   (5,268)

 Closing net book amount at 31 December 2008     92,354

 Additions                                       13,826
 Exchange difference                                 31
 Net book value of disposals                       (44)
 Depreciation                                   (6,432)

 Closing net book amount at 30 June 2009         99,735

8    Intangible asset

                            USD'000

 At 1 January 2008            1,490
 Charge for the period         (43)

 At 30 June 2008              1,447
 Charge for the period         (47)

 At 31 December 2008          1,400
 Charge for the period         (44)

 At 30 June 2009              1,356

9    Cash and bank balances

                                                    At 30 June  At 31 December
                                                          2009            2008
                                                       USD'000         USD'000

 Cash at bank and on hand                               20,444          21,112
 Short term and margin deposits                         67,079          76,712

 Cash and bank balances                                 87,523          97,824
 Less: Margin deposits                                 (6,417)         (6,368)
 Less: Bank overdrafts (Note 10)                       (4,858)         (1,231)

 Cash and cash equivalents (for cash flow               76,248          90,225
 purpose)

At 30 June 2009 and 31 December 2008, the cash at bank and short term deposits were held with six banks. The effective average interest rate on short term deposits was 2.33% (31 December 2008: 2.79%) per annum. These deposits have an average maturity of seven days to one month. The margin deposits with the banks are held under lien against guarantees issued by them.

10    Borrowings

                            At 30 June  At 31 December
                                  2009            2008
                               USD'000         USD'000

 Bank overdrafts (Note 9)        4,858           1,231
 Revolving facility                  -          10,693

                                 4,858          11,924

The bank facility relating to overdrafts and revolving facility carry interest at LIBOR/EIBOR + 2.0% to 2.5%.

The Group has the following undrawn borrowing facilities:

                            At 30 June  At 31 December
                                  2009            2008
                               USD'000         USD'000
 Floating rate:
 Expiring within one year       22,392             250
 Expiring beyond one year            -          15,076

                                22,392          15,326

The facilities expiring within one year are annual facilities subject to review at various dates during 2009. These facilities have been arranged to meet the working capital requirements of the Group.

Although global market conditions have affected market confidence and consumer spending pattern, the Group remains well placed and does not have any exposure to sub-prime lending or collateralised debt obligations. The Group has sufficient headroom to enable it to conform to covenants on its existing borrowings. The Group has sufficient working capital and undrawn financing facilities to service its operating activities.

11    Share capital

Issued and fully paid ordinary shares

    
                                                          Equity share capital
                                                           Number      USD*000
                                                                              
 At 1 January 2008                                    200,000,000       18,654
 Issued on 26 March 2008 in connection with               279,309           28
 thedeferred share award granted on 16 October
 2006
                                                                              
 At 31 December 2008 and 30 June 2009                 200,279,309       18,682
                                                                              

The total authorised number of ordinary shares is 400 million (2008: 400 million shares) with par value of 5 pence per share (2008: 5 pence per share).

On 26 March 2008, the Company issued 279,309 shares at a nominal value of £ 0.05 per share by debiting the Retained earnings. These shares, which included 3,079 shares relating to dividend entitlement, were issued to a Director of the Company, following the satisfactory fulfilment of the vesting condition, in accordance with the deferred share award granted on 16 October 2006.

During 2009, EBT acquired 1,391,253 shares (H1 2008: 92,725 shares; H2 2008: 661,826 shares) of the Company. The total amount paid to acquire the shares was USD 1.7 million (H1 2008: USD 0.9 million; H2 2008: USD 1.7 million) and has been deducted from the Consolidated Retained earnings. During 2009, 618,155 shares (2008: 85,294) amounting to USD 2.4 million (2008: USD 0.3 million) were issued to employees on vesting of the free shares and at 30 June 2009 1,442,355 shares (31 December 2008: 669,257) are held as treasury shares. The Company has the right to reissue these shares at a later date. These shares will be issued on the vesting of the free shares granted to certain employees of the Group. 

12    Legal reserve

The legal reserve of USD 29,436 at 30 June 2009 (31 December 2008: USD 29,436) relates to subsidiaries incorporated as limited liability companies in the UAE. In accordance with the respective subsidiary's Articles of Association and the UAE Federal Law No. (8) of 1984, as amended, 10% of the profit for the year of such companies is transferred to a Legal reserve. Such transfers are required to be made until the reserve is equal to, at least, 50% of the Share capital of such companies. There was no transfer to legal reserve during the current period.

13    Merger reserve

    
                                         At 31 December2008 and at30 June 2009
                                                                       USD*000
                                                                              
 Nominal value of shares of the                                         18,654
 Company on 25 September 2006
 Share capital of LEL                                                     (82)
                                                                              
 Merger reserve on acquisition of                                       18,572
 LEL
                                                                              
 Purchase consideration relating to                                      4,000
 acquisition of Inspec
 Share capital of Inspec                                                 (150)
                                                                              
 Merger reserve on acquisition of                                        3,850
 Inspec
                                                                              
 Total                                                                  22,422
                                                                              

On 11 September 2006, LEL acquired 100% of the legal and beneficial ownership of Inspec from LHL for a consideration of USD 4 million. This acquisition has been accounted for using the uniting of interests method and the difference between the purchase consideration (USD 4 million) and Share capital of Inspec (USD 150,000) has been recorded in the Merger reserve. 

On 25 September 2006, the Company entered into a share for share exchange agreement with LEL and LHL under which it acquired 100% of the 49,003 shares of LEL from LHL in consideration for the issue to LHL of 200,000,000 shares of the Company. This acquisition has been accounted for using the uniting of interests method and the difference between the nominal value of shares issued by the Company (USD 18,654,000) and the nominal value of LEL shares acquired (USD 82,000) has been recorded in the Merger reserve.

14    Provision for employees' end of service benefits

                                USD'000

 At 1 January 2008                9,740
 Charge for the period            1,549
 Payments during the period       (380)

 At 30 June 2008                 10,909

 Charge for the period            3,751
 Payments during the period       (331)

 At 31 December 2008             14,329

 Charge for the period            1,815
 Payments during the period     (1,674)

 At 30 June 2009                 14,470

In accordance with the provisions of IAS 19, management has carried out an exercise to assess the present value of its obligations at the period end, using the projected unit credit method, in respect of employees' end of service benefits payable under the UAE Labour Law. Under this method, an assessment has been made of an employee's expected service life with the Group and the expected basic salary at the date of leaving the service. Management has assumed average increment/promotion costs of 4% to 5% (2008: 4% to 5%). The expected liability at the date of leaving the service has been discounted to its net present value using a discount rate of 6% (2008: 6%).

15    Related party balances and transactions 

Related parties comprise LHL (which owns 33% of the issued share capital of the Company), certain legal shareholders of Group companies and Directors and key management personnel of the Group. Other than disclosed elsewhere in the condensed consolidated interim financial information, the Group entered into the following significant transactions during the period with related parties at prices and on terms agreed between the related parties: 

    
                                                      Six months ended 30 June
                                                             2009         2008
                                                          USD*000      USD*000
                                                                              
 Key management compensation                                5,105        9,617
                                                                              
 Sponsorship fees paid to legal shareholders of                69           68
 Lamprell   Dubai LLC and Lamprell Sharjah WLL
                                                                              

Key management compensation comprises:

    
                                                   Six months ended 30 June
                                                          2009         2008
                                                       USD*000      USD*000
                                                                           
 Salaries and other short term employee benefits         4,526        5,362
 Share based payments * value of service provided          424        4,088
 Post-employment benefits                                  155          167
                                                                           
                                                         5,105        9,617
                                                                           

Dividends paid by the Company include an amount of USD 2.2 million (2008: USD 8.6 million) in respect of shares held by key management personnel (including those held by the EBT in respect of shares gifted/awarded) of which USD 2.1 million (2008: USD 8.1 million) was paid to LHL, a company controlled by Steven Lamprell who is a member of key management. 

16    Dividends 

During the period (on 27 March 2009), the Board of Directors of the Company approved a final dividend of USD 6.3 million (US cents 3.15 per share) relating to the year ended 31 December 2008. At 30 June 2009, the unpaid dividend amounted to USD 36,000.

During 2008 (on 25 March 2008 and 26 September 2008), the Board of Directors of the Company approved dividends of USD 37.3 million comprising USD 24.5 million (US cents 12.25 per share) relating to 2007 and an interim dividend of USD 12.8 million (US cents 6.40 per share) for 2008. At 31 December 2008, the unpaid dividend amounted to USD 9,000.

17    Commitments

(a)    Operating lease commitments

The Group leases land and staff accommodation under various operating lease agreements. The remaining lease terms of the majority of the leases are between 7 to 25 years and are renewable at mutually agreed terms. The future minimum lease payments payable under operating leases are as follows:

                                                    At 30 June  At 31 December
                                                          2009            2008
                                                       USD'000         USD'000

 Not later than one year                                 7,948           6,063
 Later than one year but not later than five years      13,522          14,001
 Later than five years                                  35,061          36,321

                                                        56,531          56,385

(b)    Other commitments

 Letters of credit for purchase of materials and         73  11,326
 operating equipment

 Capital commitments for purchase of operating          479   3,215
 equipment

 Capital commitments for construction of a facility  19,023  25,413

18    Bank guarantees

                                                    At 30 June  At 31 December
                                                          2009            2008
                                                       USD'000         USD'000

 Performance/bid bonds                                 129,413         135,903
 Advance payment, labour visa and payment               14,337          14,147
 guarantees

                                                       143,750         150,050

The various bank guarantees, as above, were issued by the Group's bankers in the ordinary course of business. A few guarantees are secured by 100% cash margins, assignments of receivables from some customers and in respect of guarantees provided by banks to the Group companies, they have been secured by Parent company guarantees. In the opinion of the Management the above bank guarantees are unlikely to result in any liability to the Group.

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
IR MGGZRLKNGLZM

UPDATE 2-Petrofac sees profit up 20 pct on MidEast focus =2

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