Seajacks 3 LTD Allows Option for a Second Vessel (UK)

Lamprell plc has been notified by Seajacks 3 LTD that it is allowing the option for a second vessel, negotiated as part of the original transaction to construct a self-elevating and self-propelled offshore wind turbine installation vessel entered into in June 2010, to lapse.

In addition, the first option for a self-elevating and self-propelled offshore wind turbine installation vessel granted to Fred Olsen Windcarrier AS (“Windcarrier”) in February 2010 has now lapsed without being exercised. The second option remains outstanding until August 2011.The existing vessels for these customers remain under construction at Lamprell’s Hamriyah and Jebel Ali facilities respectively, and are scheduled to be delivered on time and on budget.

The Company believes that there are ongoing delays in the development of the offshore wind sector driven by a number of factors. Nevertheless Lamprell looks forward to the opportunity to continue to work with Seajacks, Windcarrier and other operators as the offshore wind sector grows in the medium and longer term.

The non-exercise of these options has no impact on the Company’s expectations for the current year. It means that the Company has the opportunity to utilise facility capacity to pursue new construction contracts and it remains very active in terms of contract bidding in this area of its business. The company has a record bid pipeline at this time and sees in particular an increase in activity levels in the new build jackup market, reflecting the current buoyancy of that market segment.


Source: lamprell , February 17, 2011