Lamprell practically monpolises the Middle East rig refurbishment market. The Chief Exec stated that the last time there was an oil price slump rig refurbishment bookings rocketed... but it's stock is down from almost £6 to 75p in months. At September interims the company had $147m of cash on the balance sheet ... that's over half the current mcap. Considering the enterprise turned over these figures for H1 one has to wonder what is going on...* Revenue: US$ 318.2 million up 29.3% (H1 2007: US$ 246.1 million)
* Adjusted operating profit: US$ 50.5 million up 15.2%* (H1 2007: US$ 43.9 million)
* Adjusted net profit: US$ 52.3 million up 15.7%* (H1 2007: US$ 45.2 million)
* Adjusted EPS (fully diluted): 26.11 cents up 15.6%* (H1 2007: 22.58 cents)
The sell off appears to be due to credit quality of some of their customers (as well as the unforgiving bear of course). Scorpion Offshore apparently may not be able to pay for 2 rigs... which may bring with it a $50m impairment... but even so, that's hardly a good reason for a $1.5bn markdown in market capitalisation. I guess the fear is that more small Middle East oilers may have similar problems at $50 oil.
I've added this one to my bargain watch portfolio.