Lamprell reorganises into three units to focus on energy transition
The UAE-based offshore construction specialist Lamprell has decided to reorganise into three new business units – Renewables, Digital, and Oil & Gas – as part of its efforts to focus on energy transition.
Lamprell on Thursday revealed its plans for a strategic reorganisation of its business to increase its focus on renewables and the energy transition, increase alignment with customers, and enable the company to take full advantage of opportunities in its core markets.
In recent years, Lamprell has established a track record as a provider of fabrication services to the renewables industry. Since 2017, the company has fabricated over 100 foundations for the UK’s offshore wind farms.
At the same time, the company 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.
In a bid to ensure a lean and agile organisation to maximise opportunities across these markets, Lamprell is now reorganising into three distinct business units: Renewables, Digital, and Oil & Gas.
The Renewables business comprises the company’s existing projects providing wind turbine generator foundation fabrication services to offshore wind.
Renewables opportunities currently make up $2.5 billion or about 40 per cent of the company’s bid pipeline with the increase attributable to US renewables entering the pipeline.
Lamprell expects to see continued strong growth in renewables opportunities in the coming years, driven by rapid expansion in core markets and by the commercialisation of floating wind which is expected to provide significant opportunities mid-decade onwards.
The Digital business encompasses the technology and IP development teams that have successfully implemented a range of technologies in the group’s yards.
These include 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, the region’s digital developer backed by Mubadala Investment Company, and Akselos, a developer of simulation technologies.
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.
Oil & Gas
The Oil & Gas business comprises its traditional activities in rig fabrication, rig refurbishment, onshore EPC and other services, as well as planned expansion into Offshore EPCI under the Saudi Aramco LTA.
Lamprell Oil & Gas recognises the continuing role of hydrocarbon development during the energy transition.
The company noted that the Oil & Gas remains a significant part of the group’s bidding pipeline in 2021 and demand is expected to increase in the medium-term as markets recover, with these projects continuing to support the development of Lamprell’s Renewables and Digital business units which have long-term growth prospects.
This strategic reorganisation will enable the company to place a greater focus on maximising the significant opportunities for each of the three business units, Lamprell explained.
In the context of this strategic reorganisation, Lamprell continues to explore how best to finance these business units going forward.
Christopher McDonald, CEO, Lamprell, said: “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”.
McDonald added: “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”.