Oil engineering services group, Lamprell Plc (LON:LAM) has won a major contract from Seajacks 3 valued at $129m. The contract is for the design, construction and delivery of a Gusto MSC NG-5500 design self-elevating and self-propelled offshore wind turbine installation vessel which is due to be delivered in 2012. As part of the contract, Seajacks has an option for Lamprell to build a second vessel valued at US$ 129.0 million with a 12 month exercise period. Shares in Lamprell responded by rising 6.7% to 222.5p.
CEO Nigel McCue says: "This award is significant because it marks another major contract for us in what has already been a busy year for new business. We believe it reinforces the value of our reputation for high quality execution of contracts, both on time and within budget, and we are delighted to be working with Seajacks once again. Coming as it does after the Fred Olsen contract for two wind turbine installation vessels earlier this year, this win reaffirms our belief that we are well positioned to be leaders in the provision of such liftboats, a market we believe will continue to expand rapidly as the offshore wind sector pursues its ambitious expansion plans."
At the end of April, Lamprell reported that its performance in the early part of 2010 had been in line with management expectations. It said it was seeing evidence of improvements in its operating markets and its bid activity remained high. In March, the group’s order book extending to 2012 stood at approximately US$638m, comprising approximately US$501m from engineering, procurement and construction projects and approximately US$84m from offshore construction projects, including offshore well head platforms, floating production, storage and offloading units and accommodation modules.
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