Lamprell, a company traditionally known as oil and gas rig builder, has this week announced a reorganization of its business aimed at increasing focus on renewables and the energy transition.
Based in the UAE, the company has in recent years increased its uptake of renewables sector orders, building jackets of UK offshore wind farms, and it has now described this part of business as "a core area of expertise for Lamprell."
This is not to say the company will only focus on renewables. Namely, Lamprell has said that it has accelerated its focus on digital innovation and continued to advance its traditional business of providing jack-up rigs and related energy infrastructure to the oil & gas industry.
Lamprell said this week that it would reorganize the company in into three distinct business units: Renewables, Digital and Oil & Gas.
The Renewables business comprises the Group's existing projects providing wind turbine generator foundation fabrication services to offshore wind.
"Renewables opportunities currently make up USD 2.5 billion (c. 40%) of the Group's bid pipeline with the increase attributable to US renewables entering the pipeline. We expect to see continued strong growth in renewables opportunities in the coming years, driven by rapid expansion in core markets and by the commercialization of floating wind which is expected to provide significant opportunities mid-decade onwards," Lamprell said.
"Lamprell's experience, expertise and central geographic location provide the Group with a strong position to access the expansion of offshore wind globally, an industry forecast to require over USD300 billion of capex in the next five years alone," the company added.
The Digital business encompasses the technology and IP development teams that have successfully implemented a range of technologies in the Group's yards, such as the deployment of adaptive robotic welding, facial recognition technology and a proprietary digital quality management system. It also comprises Lamprell's partnerships with Injazat/G42, which is considered to be the region's leading digital developer backed by Mubadala Investment Company, and Akselos, a developer of simulation technologies, the company explained.
"Lamprell Digital will continue to advance proprietary technologies for industrial application, in areas such as asset integrity, engineering design, smart non-destructive testing, predictive maintenance and robotics," it said.
Lamprell Oil & Gas division comprises the Group's traditional activities in rig fabrication, rig refurbishment, onshore EPC and other services, as well as the company's planned expansion into Offshore EPCI under the Saudi Aramco LTA.
"Central to the Group's Oil & Gas strategy is Lamprell's differentiated positions in the UAE and Saudi Arabia. Lamprell is committed to the IMI joint venture, which provided the Group with a contract for two newbuild jackup rigs in 2020 as well as an engineering design contract for further rigs, supporting its commitment to fleet expansion over the next decade," Lamprell said.
"The three business units have different priorities and needs, from their distinct customer bases, bidding processes, yard requirements and capital requirements. This strategic reorganization will enable the Group to place greater focus on maximizing the significant opportunities for each of the three business units. In the context of this strategic reorganization, the Group continues to explore how best to finance these business units going forward," Lamprell said.
Christopher McDonald, CEO, Lamprell, said: "In the four years since I joined Lamprell we have been reimagining the business for the future. Today we set out the shape of Lamprell as it looks forward, taking its long and proud history of providing services to the energy industry and accelerating its focus on renewables and digital technologies. This evolved structure will provide the business with greater focus as we seek to take full advantage of the many opportunities we see across our end markets."
"As the Group emerges from what we hope is the worst of the COVID-19 pandemic in good shape, the time is right for us to be positioning the Group for the next phase of its growth. I am very proud of the way our people have managed the challenges of 2020, and the Group's improving financial performance is thanks to their discipline, dedication and hard work. Lamprell has an exciting future and we have a great platform on which to build."