Offshore wind jackets fabricator Lamprell recorded a widening net loss last year and has withdrawn its 2020 revenue guidance citing Covid-19 impacts.
The company made a net loss of $183.5m (€205m) in its 2019 financial results, wider than the $70.7m in 2018.
Lamprell chief executive Christopher McDonald said: “2019 was another challenging year for the industry, impacting our financial performance through low revenues and one-off losses.”
The company cited low revenues, final settlement on the East Anglia 1 offshore wind project and charges associated with operational restructuring and impairment charges and one-off events as impacting results.
East Anglia 1 contract close-out completed in April 2020, with all jackets delivered and installed. Lamprell sustained a project loss of $118.2m.
The final contract payment of $18.9m was received in May 2020.
Revenue rose to $260.1m in 2019 from $234.1m the previous year.
The company said it has implemented “cost-cutting and restructuring measures” to navigate the current challenging market and socio-economic conditions.
Lamprell mothballed its Jebel Ali yard in the Middle East earlier this year as part of measures to reduce overheads.
The Sharjah facility will be exited after the Moray East contract is completed said Lamprell.
Other cost-saving measures include reducing headcount.
McDonald added: “Ensuring a sustainable future for the business is our absolute priority and we have taken a number of significant steps and self-help measures to reduce our cost base as the business addresses significant liquidity pressures.
“The unpredictability and outlook challenges in the global energy market are well documented, but Lamprell is strategically well positioned, with well-established local operations in the Middle East and a growing track record in renewables.
“We are focused on converting the opportunities in our pipeline.”
The Moray East offshore wind project is progressing well, as planned, stated Lamprell, with “major efficiencies” achieved through incremental infrastructure investment in the Hamriyah yard.
A total of 24 jackets have already been upended for the project with first and second batches delivered to the client at the quayside in Hamriyah on time.
Remaining deliveries will continue through to the third quarter 2020, which Lamprell said it expects to “pave the way” for future project wins in the “fast-growing” offshore wind market.
Lamprell non-executive chairman John Malcolm said: “As the world, and our industry in particular, grapple with the effects of the COVID-19 crisis, we take heart in reporting good progress against our strategy and robust operational performance on our ongoing projects.
“We remain committed to our goals and are particularly encouraged by the growth forecasts in the renewables industry.
“In these uncertain times and given that the company’s financial position remains very challenging, our immediate goal is to protect our net cash position and improve liquidity for the group, to ensure the future of the business.”