Lamprell said it expects to face further headwinds in 2017 despite some early signs of a market recovery. File photo by Stephen Shaver/UPI | License Photo
Jan. 23 (UPI) -- Energy sector engineering services company Lamprel said Monday it was taking a cautious stance on the year ahead despite a broad market rebound.
Lower crude oil prices since 2014 has crimped spending in the oil, gas and renewable sectors serviced by companies like Lamprell, though the company last year was forced to trim payrolls by around 4,000 by the end of 2016 to remain cost competitive.
"While making these reductions, we have deliberately retained our core competitive strengths, to ensure that Lamprell is well positioned as the market recovers," the company said in a statement.
Lamprell, which has headquarters in Dubai, reported revenue for the six months ending June 30 was up 28 percent to $451 million. For 2017, Lamprell said it was maintaining its guidance of revenue between $400 million and $500 million, but stressed it expected to realize the low end of that estimate.
The company said the environment remained challenging throughout much of last year, but it ended on a high note with new contracts, including one to help advance the giant Johan Sverdrup oil field off the Norwegian coast toward production.
John Kennedy, the company's executive chairman, said the market recovery that followed a decision last year from the Organization of Petroleum Exporting Countries to curb production was welcome news.
"However, we also recognize that all our customer 2017 capital budgets are already established and in place, and that there is little expansive flexibility in the associated expenditures," he said. "For these reasons, the company continues to believe that 2017 will prove a particularly cautious environment."