UAE fabricator Lamprell is seeking to raise up to $150m by the end of the third quarter to deal with “liquidity constraints”.
The company is in talks with banks to raise around $90m. Funding is required to satisfy its working capital requirements, particularly with respect to the delivery of the two IMI rigs currently under fabrication.
The remainder of the raise is to spend on operational investment in efficiency and capacity growth, in particular for renewables projects.
Lamprell is eying a multi-billion Euro renewables pipeline and is aiming to position to company to take advantage of it with the fresh investment.
Lamprell delivered EBITDA of $3.9m for 2020, turning around a $65m loss in 2019.
It said the Seagreen offshore wind project is “progressing to schedule and benefiting from multiple recent operational investments”.
Chief executive Christopher McDonald: “In order to fulfil our near-term working capital needs and to then provide additional financial flexibility to pursue our plans, we are working with our banks to access working capital facilities which, subject to market conditions, will be complemented by a proposed equity raise.
“The additional equity is necessary to further strengthen the Group’s balance sheet, given current short term liquidity challenges, to allow us to fund the strategic investment in the Saudi joint venture and to enable targeted investment to support our Lamprell Reimagined process as we drive towards sustainable and profitable growth.”