Lamprell to make ‘loss’ on EA1 job
Learning curve to deliver jacket foundations ’steeper than anticipated’
London-listed fabricator Lamprell expects to “make a significant loss” on its jacket foundation contract for ScottishPower Renewables’ 714MW East Anglia 1 offshore wind farm off the UK east coast.
Lamprell said there have been “start-up costs and inefficiencies in relation to the contract and the learning curve has proven to be steeper than anticipated”.
The company said the loss will be booked in 2017 and it remains “confident of meeting our clients and expectations in terms of schedule and quality”. However, it will incur extra costs to achieve this.
“We are working with our client and supply chain to mitigate the additional costs,” Lamprell added.
It said that another announcement will be made in “due course” regarding the actual financial impact of the contract.
Lamprell said it remains confident, however, that the renewables market offers “significant potential for growth” for the company.
“We are convinced that the lessons learned from this first project in the sector have strengthened out capabilities. This will help to position us competitively for future project awards,” it added.
Lamprell secured a contract late last year to fabricate 60 jackets for EA1 at its yards in the UAE, with a further 24 foundations outsourced to Harland and Wolff in Belfast.
Image: Lamprell yard in Sharjah (Lamprell)