Lamprell gets notice to proceed with Saudi contract, shares shoot up

18th Feb 2022 13:04

(Sharecast News) - Lamprell shares shot higher on Friday after the company said it had received a limited notice to proceed (LNTP) from Saudi-based contractor Bas Global Marine Services to go ahead with a new contract, which is expected to be awarded in the second quarter.

The full scope of work on the contract relates to the delivery and construction of multiple jack-up lift barges to BGMS. Lamprell described the contract as "large", meaning it is worth between $51m and $150m.

The scope of work under the LNTP is for early works, including the procurement of materials and mobilisation of the group's project management team.

Lamprell, which provides services to the energy sector, said all project activities will be undertaken in its Hamriyah facilities and work will start immediately, with project completion planned for the second half of next year.

Chief executive Christopher McDonald said: "We are very pleased to be working on this project in support of BGMS' contract with Saudi Aramco, a key customer for Lamprell for whom we are undertaking a number of other projects.

"We have a well-established and proven track record for constructing jack-up vessels for use in the offshore energy sector and we are confident of our ability to deliver this project safely and on time."

At 1305 GMT, the shares were up 12.6% at 35.37p.