Lamprell delays 2021 results on funding rush
Lamprell has pushed back the release of its results as its board seeks alternative funding.
The company said its 2021 results would be delayed. The Middle East-based carmaker has faced financial headwinds, with its latest round of results raising concerns over going concern.
In a sign of potential good news, Lamprell said it had received an initial offer to sell a majority stake in its oil and gas business. The company has entered into preliminary discussions with an interested party, it said.
More broadly, Lamprell is working on a “funding strategy”, he said. This may involve additional equity, sale of assets, financing of specific projects, facilities with Saudi banks and hybrid facilities.
Lamprell hopes to close the fundraiser in the second quarter.
In a February business update, Lamprell said revenue in 2021 reached $389 million. At the end of the year, Lamprell had $53 million in cash, $26 million of which was unrestricted.
The company faced various issues in 2021, including logistical issues related to COVID-19. Under the Omicron variant, in late 2021 and early 2022, he said about 1,200 of his workers were in quarantine.
Lamprell raised $30.1 million at the end of 2021 through an equity placement. In its November results, the latest set of audited figures, the company raised concerns about going concern.
In 2022, he said, a number of major projects required “substantial” working capital, particularly his IMI drilling work in Saudi Arabia. This would put “significant pressure on the balance sheet”, he said.
Lamprell raised the possibility that if it failed to secure the required funding, it would have to renegotiate work on the IMI platforms. This involves building two rigs, Lamprell noting that the margins on this work were minimal. IMI jack-up rigs contributed to Lamprell posting negative EBITDA in the first half of 2021.
Although Lamprell faces some challenges, he continues to earn work. It recently won a contract to supply turbine liners for the Moray West offshore wind farm in Scotland.
The project has not made a final investment decision (FID), but developer Ocean Winds has reserved space at Lamprell’s facilities in Hamriyah.