Lamprell warns of significant loss on East Anglia One contract
East Anglia One jacket foundation. Photo by: Navantia (www.navantia.es/).
Lamprell Plc (LON:LAM) warned today its contract for the 714-MW East Anglia One offshore wind farm project in the UK will make a "significant" loss.
As a result of the loss, which will be booked in 2017, the company said its 2017 earnings and earnings before interest, tax, depreciation and amortisation (EBITDA) will likely be materially below current market expectations.
Lamprell secured a USD-225-million (EUR 190m) contract for the supply of 60 foundations, including jackets and piles, for the 102-turbine offshore wind project from ScottishPower Renewables, a unit of Spanish utility Iberdrola (BME:IBE), a year ago.
It said that the learning curve has proven to be steeper than expected but that it remains of the view that the renewables market presents significant growth potential. The company believes "the lessons learned from this first project in the sector have strengthened our capabilities."
Spanish shipbuilder Navantia is producing 42 jacket foundations for the wind farm in partnership with Windar Renovables.