Lamprell has notched a loss of $80m on a $225m deal to fabricate jacket foundations for ScottishPower Renewables’ 714MW East Anglia 1 wind farm off east England.
In 2017 annual results the UAE-based company said the project was the main reason for a wider group loss of $98.1m, less than a $182.2m deficit in 2016.
Lamprell said “significant additional costs” on staffing, equipment, shipping and subcontracting were to blame on the EA1 deal for the delivery of 60 jackets.
“Constructive discussions with our client are ongoing to meet their expectations around the schedule but, as with any contract, liquidated damages exposure remains in case of delays.”
Delivery on the contract is 73% complete with eight of the jackets delivered to onshore marshalling site Vlissingen, the Netherlands, it said.
It added “lessons have been learned” and “various performance improvement opportunities” have been implemented to “mitigate” current costs and allow the fabricator to “compete successfully on future projects”.
Offshore wind remains a “strategically important” sector for the company.
Image: Lamprell
Lamprell takes $80m hit on EA1
By EBS