Lamprell Surges on Record Order Backlog for New Oil Rigs
Lamprell Plc (LAM), an oil and gas rig builder active in the Middle East, rose to the highest in two months after doubling profit and reporting a record order backlog.
Shares of the Douglas, Isle of Man-based company rose 5.4 percent to close at 331 pence in London. Profit rose 135 percent to $67 million in 2010, and the order book stood at $962 million at the end of February, the company said in a statement today.
Lamprell has benefited from a global increase in demand for new rigs after the blowout last year at BP Plc’s Macondo well in the Gulf of Mexico. Brent crude prices are also more than 40 percent higher than a year ago, encouraging explorers to spend more on drilling.
“Macondo triggered a surge in the market for new-builds,” Lamprell Chief Executive Officer Nigel McCue said in a telephone interview. “We’re very positive about 2011. We’ll certainly see an increase in revenue through the year based on the backlog we’ve got.”
Lamprell shares have gained about 35 percent in the past year, valuing the company at 663 million pounds ($1.1 billion).