Lamprell reaches settlement over EA1 jackets
Final settlement will result in a cash payment to Lamprell of $18.9m in May, the company said.
In addition, Lamprell will now start the process of releasing up to $23m of restricted cash, which it reported on 14 April relating to the project
erformance guarantee. Approximately half of the $23m is expected to be released in the coming months, it added.
“This settlement removes both the risk of liquidated damages of $33.8m and will materially improve the group's liquidity by approximately $40m in due course,” Lamprell said.
The company reported project losses of $95.6m in September last year covering the period up to the end of 30 June 2019.
Lamprell said that following the final settlement and subject to audit, the overall project losses amount to $118.2m.
The additional loss of $22.6m will materially affect the group's financial performance for the year ended 31 December 2019.
The project loss covers all outstanding works to completion and the increased costs incurred by the subcontractor Harland and Wolff in Belfast to complete 18 of the 60 jacket foundations Lamprell was contracted to produce for EA1.
Lamprell expects that, subject to audit, 2019 revenue to be slightly lower than previous guidance at $260m. ■