Lamprell’s focus on acquisitions

Oil rig maker Lamprell is eyeing acquisitions in the Middle East and said it expects further growth after demand for more sophisticated rigs in the wake of the Gulf of Mexico oil spill boosted 2010 profit.
By The Newsroom
Published 29th Mar 2011, 09:44 BST

Lamprell posted a forecast-beating 76 per cent jump in full-year profit yesterday and said its order book swelled to $962m at the end of February from $725m in October.

Unprecedented levels of bidding activity had led it to seek to expand capacity at one of its construction yards in the United Arab Emirates, the company added.

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Lamprell, which also refurbishes rigs and builds vessels used to install wind turbines, said growth could also come from acquisitions.

Chief executive Nigel McCue said Lamprell could make a “relatively substantial” acquisition, noting that the company ended 2010 with cash of $210m and no debt.

“We are looking at, and this is the first time we’ve really done this, M&A opportunities within the Middle East region,” Mr McCue said.

“Particularly for businesses which are directly related and also offer complementary businesses ... services in the downstream sector, engineering services, which would more complement us on the downstream as well as the upstream side of the business.”

The unrest in the Middle East was not having an impact on the company’s operations, said Mr McCue, adding that the majority of Lamprell’s customers were global players.