Lamprell, the London-listed rig maker and oil industry engineering service firm, has posted a second profit warning, sending the company's shares tumbling a further 33% in early morning trading.
The announcement, posted shortly after the close of trading yesterday, came just hours after the company's annual general meeting, a move which has led analysts to further question corporate governance of the board.
The company has already received negative press after official disclosures showed two senior employees dumped significant portions of their shareholdings less than two weeks before Lamprell's first profit warning this year on 16 May.
In a statement to the London Stock Exchange, Lamprell said it has been undertaking a further analysis of it profitability after a shock announcement in May that the firm would post a loss in the first half of the year saw shares lose two thirds of their value in a single trading session.
"The anticipated loss for the first half of the year will be in the range of $15 to $20 million," said the Lamprell statement. The company said it anticipated a 2012 profit margin of just 2.5% on revenue of $1.1 billion, a reduction from 3.5%. 2010 margins were over 12%.
Lamprell is being forced to revise equipment delivery schedules after previously reporting issues with procurement from key suppliers.
The timing of the announcement could further undermine shareholder confidence in the board, and the rapid devaluation of the company could see Lamprell become a takeover target.
The company seems to acknowledge the need for reinigorated stewardship. Long-serving Chairman Jonathan Silver, Managing Partner of law firm Clyde & Co's office in the Middle East, is stepping down to Deputy Chairman. Lamprell says the search for a replacement is "at an advanced stage."
Shares are now down over 80% from 3 May, the date on which integration and development director Scott Doak and vice president Kevin Isles dumped large portions of their respective shareholdings.
The company is due for relegation to the FTSE small caps index after its recent performance.
