Rig builder Lamprell said it's able to weather the storm

DUBAI, United Arab Emirates, Sept. 22 (UPI) -- Rig builder Lamprell said it was able to post a profit during a rough patch for the industry and was in a strong position to ride out the oil market storm.

"In this tough market environment, Lamprell is in a solid position, both financially and operationally," CEO James Moffat said in a statement.

For the six months ending June 30, the company said its revenue was up 28 percent to $451 million. For 2017, Lamprell said it was expected to post revenue between $400 million and $500 million.

Full-year 2016 revenue, however, was expected to come in lower than anticipated because of what the company described as a challenging market characterized by big project delays and cancellations. Those headwinds, the company said, are expected to continue through 2017.

Lamprell, which has headquarters in Dubai, reported a full-year 2015 profit of $66.5 million, which it said was better than expected, but still 28 percent below 2014 levels.

Crude oil prices are holding at levels that are about 50 percent less than two years ago, forcing many companies to hold off on spending or to downsize altogether. Rig company Transocean, one of the largest companies in the field, said it expected few contracts to emerge in the short-term future.

Seadrill Ltd., a deep-water driller with offices in London, said in a recent filing that, with oil holding in the $40-$50 range, companies may be starting to adjust to the new normal for energy markets.

Lamprell said its ability to land new contracts was affected by the market downturn, though it was in a position to move forward through short- and medium-term challenges. Costs should move down and the company said it was open to developing strategic partnerships.