United Arab Emirates-based rig builder Lamprell (LSE:LAM) announced today that an undisclosed drilling contractor has exercised a newbuild option for an additional LeTourneau Super 116E (Enhanced)-Class jack-up rig.
Lamprell expects to deliver this rig from its Hamriyah facility in Q1 2015.
J.P. Morgan estimates the value of this latest order to be in the $200 million range and that 70% of their 2014 revenue forecast and 20% of their 2015 forecast are now covered by a secure backlog.
“Given the greater confidence this gives over 2014 earnings, we expect the shares to outperform the market today,” notes J.P. Morgan in an emailed statement.
James Moffat, Chief Executive Officer, Lamprell, commented “We continue to see a good bid pipeline and are focused on capitalising on the growth opportunities we see in the Group’s core markets.”
LAM shares are currently up over 8 percent on the London Stock Exchange today.