Lamprell 'learns lessons' of offshore wind debut $90m loss

UAE contractor confident Moray East supply deal will go better than EA1 foundation work

Contractor Lamprell said it has learned the lessons of its first $90m-loss-making foray into renewables as it prepares to supply foundations to the Moray East wind farm off Scotland.

UAE-based oil & gas stalwart Lamprell had a torrid debut in renewables at the East Anglia One (EA1) project off eastern England, when operational and pricing missteps dogged its deal to supply 60 jacket foundations to the 714MW Iberdrola project.

Lamprell flagged a further $9.4m loss against the EA1 contract in its 2018 full-year results, adding to the $80m already booked in 2017. The company’s shares have halved in value since last year and fell another 3% following publication of the latest results.

The company is now gearing up to supply 48 turbine and substation jackets to the 950MW, EDPR-led Moray East project after winning a $200m contract in December.

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Chairman John Malcolm said the Lamprell board looked “very seriously” at the risk profile of Moray East, but added: “The role of renewables in the global energy landscape will continue to gain prominence.

“The pipeline of projects in Europe, presently the largest wind farm market, is growing and large offshore wind farms are gradually spreading across the globe with the US market now also taking a more proactive step towards cleaner energy.”

Malcolm added: “I firmly believe in retaining this product offering as one of our strategic focus areas and I have full trust in Lamprell’s ability to deliver this new project and regain shareholder confidence.”

The company said it now has a leadership team with experience of delivering complex EPCI projects and its “project execution approach has been upgraded to reinforce controls at every stage”.

CEO Christopher McDonald said: “With the knowledge and experience we gained through East Anglia One we have been able to significantly reduce the risk profile on this project, and I am confident we can deliver in a timely and cost effective manner.”

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