Lamprell, an engineering and construction company, is experiencing a significant surge in its bidding pipeline, which has grown to over $55 billion, driven by a wave of contracting activities in the Middle East, particularly in Saudi Arabia and the United Arab Emirates. The company's chief executive attributes this all-time high in bidding levels to multiple oil and gas projects in the region and promising renewable energy opportunities in Europe. The bid pipeline consists of real, active projects with at least a two-year visibility, and there is no sign of abatement in client activity.

Project Portfolio and Market Focus

Approximately 80% of Lamprell's prospective projects are from the oil and gas sector, while renewables, primarily offshore wind, make up the remaining 20%. The company commands a project backlog exceeding $4 billion, split 70% for oil and gas and 30% for renewables. The Gulf Cooperation Council (GCC) region is considered its "home turf," with a strong focus on Saudi Arabia, where it is one of six active Long Term Agreement (LTA) contractors for Aramco, providing access to numerous maintenance and greenfield projects. Lamprell is also actively bidding for work with Abu Dhabi National Oil Company (Adnoc), including both onshore and offshore elements of the massive Umm Shaif gas cap development, and remains optimistic about the UAE market.

Strategic Expansion and Synergies

Lamprell is expanding its presence in the Indian market and is poised to secure a significant offshore pipelay contract from ONGC. This expansion is strategically beneficial because offshore campaigns in India occur during seasons opposite to those in the Middle East, allowing for greater year-round asset utilization. Additionally, the company is broadening its capabilities in the onshore oil and gas sector as a natural extension of its fabrication expertise and has already secured some work in this area. A key strategic enhancement comes from its parent company, Algihaz Holding, which, through its subsidiary Algihaz Marine Contractors (AMC), has expanded into the transportation and installation sector. This move complements Lamprell's offerings in the Engineering, Procurement, Construction, and Installation (EPCI) domain, particularly with AMC's acquisition of the 'Sevan Champion' pipelay vessel and long-term vessel leases, enabling successful joint bidding.

Fabrication and Operational Capabilities

Lamprell operates multiple fabrication facilities in the Middle East, providing a significant annual capacity estimated between 180,000 and 200,000 tonnes when combining its key sites:

• The Hamriyah fabrication yard in Sharjah, UAE, spans 750,000 square metres.
• The company holds a key stake in the massive International Maritime Industries (IMI) yard in Saudi Arabia, which covers 12 million square metres.
• It is set to revive the Jebel Ali fabrication yard in Dubai (approximately 160,000 square metres), which was previously mothballed for five years and is designed for modules work.

This extensive infrastructure supports its diverse project execution capabilities across offshore and onshore sectors.

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