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Lamprell plcLamprell plcPreliminary results 2006Preliminary results 2006

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Company OverviewCompany Overview

Company OverviewCompany Overview

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• Established for over 30 years

• Flotation in October 2006 on London AIM

• Principal areas of expertise• Jackup rig upgrade and refurbishment• New building of jackup rigs• New build construction for offshore oil and gas industry• Land rig upgrade and refurbishment

• Leading jackup rig refurbisher in the Middle East

• Major expansion opportunities• New facility in Hamriyah Free Zone• Long term buoyancy in the oil and gas market

Management StructureManagement Structure

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• Peter Whitbread Chief Executive Officer & Chairman(Standing down end 2007 as C.E.O)

• David Moran Chief Operating Officer

• Scott Doak Chief Financial Officer

• Non-executive Directors Peter Birch (Senior Independent Non-executive)Nigel McCueRichard Raynaut

• President Steven D. Lamprell(Founder and 34% share holder)

• Operational Vice Presidents A management team with collectively over 120 years industry experience

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Company HighlightsCompany Highlights

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Company HighlightsCompany Highlights$ Million $ Million

2006 2005

Revenue 329.6 209.2 +57.5%

Net profit before exceptional charges 56.9 29.8 +91.0%

Net profit after exceptional charges 33.8 29.8 +13.5%

• Increased growth in all primary activities

• Jackup rig upgrade and refurbishment

• New build construction

• Land rig upgrade and refurbishment

• Continued high quality of earnings

• Strong balance sheet

• Good cash generation

Company HighlightsCompany Highlights

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• Significant increase in forward visibility of revenue

• Attractive oil & gas market

• Record level of regional drilling activity

• Continued increase in additional rigs entering Arabian Gulf

• Increasing level of development activity in Floating Production Storage and

Offloading (FPSO) and fixed structure developments

• Increase in regional land based drilling activity

• Award of two jackup liftboat construction contracts

• Value US$ 224 million with three further options

Company HighlightsCompany Highlights

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• Lamprell continues to be the regional market leader in rig upgrade and refurbishment

• High level of repeat business from existing clients

• Undertaking and successfully completing larger projects

• Rig Junana• British Gas India Tapti project • Kashagan FGC Barges• Nabors 660 rig

• In 2006 Lamprell has delivered

• Increased turnover and profit• Increased long term revenue visibility• Broader client base

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Operating ReviewOperating Review

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Operating ReviewOperating Review• Significant growth in all areas of activity

• All projects delivered within an agreed timeframe

• Consistent growth in project value post award

• Broadening client base reflects successful marketing mix and project collaboration

• Maintained high levels of customer satisfaction

• Greater project diversity with higher values and fabrication complexity

• Effective resource management

• Capital investment in operating equipment and infrastructure

• Continual focus on safety resulting in LTI statistics well below industry norms

• Environmental accreditation achieved

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Jackup RefurbishmentJackup Refurbishment

Operational highlights

• Twenty seven rigs refurbished in 2006 including first semi-submersible rig

• Increased scope and growth in value of projects with turnover up over 30% on 2005

• Maintained position as region’s leading jackup refurbishment provider

• Expansion of client base including Rowan Drilling and Diamond Offshore

• Expansion of existing temporary facility in Hamriyah Free Zone

Offshore ConstructionOffshore Construction

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Operational highlights

• Maintained position as the region’s leading FPSO process module fabricator

• Eight major projects conducted during 2006

• Increased scope and growth in value of projects with an increase in turnover of more than 120% on 2005

• New client acquisitions broadening the revenue base

• Expansion of capacity through further investment in equipment and facilities

• Increased profile and experience in offshore fixed structure fabrication market

Oilfield EngineeringOilfield Engineering

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Operational highlights

• During first full year in new facility all key objectives exceeded

• Increased turnover by over 30% on 2005

• Executed ten land rig refurbishment projects for a broadening client base

• Fourteen complete land camps constructed/delivered

• A wide range of mechanical and rotary equipment overhaul projects successfully completed

• Expansion of offsite field services

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FinancialsFinancials

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Summary Profit and LossSummary Profit and Loss• Strong sales growth driven by increasing

market demand

• Operational capacity has increased due to new facilities at Jebel Ali and temporary Hamriyah

• Consistent margin improvement

• Zero tax

• Significant increase in net earnings

• Strong new build activity

• Middle East onshore and offshore drilling activity at all time high

• Well placed for further growth in 2007

70 106

330209

2003 2004 2005 2006

EBITDA ($m) & margin (%)EBITDA ($m) & margin (%)

Net earnings ($m) & margin (%)Net earnings ($m) & margin (%)

Turnover ($m)Turnover ($m)

*

*For the current year stated before reflecting exceptional charges for share based payments of $15.6m and IPO costs of $7.5m

** Years 2003 and 2004 exclude the impact of acquisition of International Inspection Services (Inspec)

*11% 12%

19%16%7.9

61.2

33.0

12.8

0

20

40

60

80

2003 2004 2005 20060%

5%

10%

15%

20%

8% 10%

14%17%

10.25.6

29.8

56.9

0102030405060

2003 2004 2005 20060%

5%

10%

15%

20%

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Profit & LossProfit & Loss(US$ m)(US$ m)

20052005FYFY

20062006FYFY

209.24 329.59

(253.25)

76.3423.2%

0.77

(0.99)

(14.96)

61.16(5.08)

56.0817.0%

0.85

56.93(23.12)

33.81

(164.20)

45.0421.5%

0.37

(0.67)

(11.71)

33.03(3.60)

29.4314.1%

0.37

29.80-

29.80

Contract revenue

Contract costs

Gross profitGross margin

Other operating income

Selling & distribution

G&A

EBITDA*

D&A

Operating profit *

Operating margin

Interest income

Net profit *

Exceptional itemsNet profit after exceptional items

* For the current year stated before reflecting exceptional charges for share based payments of $15.6m and IPO costs of 7.5m

• Gross margin increase a function of sales price increases and operational efficiencies

• Increase in G&A primarily due to growth in headcount

• Increase in depreciation charges through investment in operating equipment will result in reduced costs of hired equipment

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Balance SheetBalance Sheet($m)($m) 20052005

FYFY20062006

FYFY

40.6

137.8

(80.5)

57.3

97.9

(8.0)

89.9

89.9

Non current assets 21.7

Current assets 116.4

Current liabilities (56.5)

Net current assets 59.9

Total assets less current liabilities 81.6

Non current liabilities (5.9)

Net assets 75.7

Equity shareholders’funds 75.7

• Non current assets - mainly capexspend of $24.0m, largely operating equipment of $18.9m

• Current assets - timing differences resulting in higher trade receivables and amounts due on contracts

• Current liabilities - largely reflects increased business activity

• Zero debt

• Equity shareholders’ funds - reflects profit for the year $33.8m, share based payments of $15.6m, dividends ($31.3m) and merger reserve on acquisition of Inspec ($4.0m)

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Cash FlowCash Flow((US$mUS$m))

20052005FYFY

2006 2006 FYFY

Net profit * 29.80 56.93

Depreciation & amortisation 3.60 5.08

Working capital movements 3.51 (38.86)

Others 1.04 1.02

Cash generated from operations 37.95 24.17

Net interest 0.37 0.85

Margin deposits (0.98) (1.52)

Net capital expenditure (6.45) (21.31)

Funds due from / to related parties (7.25) 18.50

Dividends (3.81) (26.25)

Net acquisitions / disposals (1.00)

Net cash flow 19.83 (6.56)

Adjustment for IPO costs - (7.53)

Opening net cash / (debt) 10.67 30.50

Closing net cash / (debt) 30.50 16.41

* For the current year stated before reflecting exceptional charges for share based payments of $15.6m and IPO costs of $7.5m

• Strong cash flow generated from operations

• Working capital - timing differences resulting in higher trade receivables and amounts due on contracts, also advance payment of $14.4m for the purchase of jackup rig kit

• Net capital expenditure - capexspend of $24.0m, largely operating equipment of $18.9m, net of proceeds from asset held for re-sale of $2.7m

• Related parties - prior year amounts paid on behalf of Lamprell Holdings Limited (“LHL”) paid as dividends in current year

• Final dividend of 3.80 cents (1.93 pence) per share

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Future Developments and Future Developments and ProspectsProspects

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Hamriyah facilityHamriyah facilityHamriyah facility

• Investment in the Hamriyah facility, a new 330,000m2 development

• 1.25 kms of quayside access with capacity for ten rigs from 2009 onwards

• Investment budget US$50 Million

• New build jack up capability

• Capacity for semi-submersibles

• FPSO topsides integration

• Modern client and employee facilities with capacity for future growth and expansion

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Other Future Developments Other Future Developments and Prospects and Prospects

Jackup rigs

• Over the next two years more jackups are required in the Arabian Gulf with at least twelve additional units for Saudi Aramco

• Lamprell already building two jackup liftboats, with a further three options. Deliveries out to 2010 with a potential value in excess of US $550 million

• New build construction of LeTourneau 116E to commence in mid 2007

FPSO/Offshore new builds

• Over 65 active FPSO projects now in development

• Increased fixed structure projects under development in prime regional areas(Saudi Arabia/Qatar/India)

Land rigs

• Major additional land rig requirements over the next 3 years, particularly in Saudi Arabia

• Commence new build land rig construction with LeTourneau Industries

• Establish central engine repair/distribution center for major drilling operators

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New MarketsNew MarketsLiftboats

• High day rates and high utilisation for large jackup drilling units now creating major demand for multi purpose liftboatjackups

• Major potential markets for liftboats

• North Sea• Gulf of Mexico• Arabian Gulf

New concepts

• Gas to liquids (GTL) engineering now developing major commercial interests. Lamprell already has an agreement with SeaOne for the provision of the first transportation loading/offloading solution

• A number of generic FPSO concepts are under development in which Lamprell has secured an early involvement

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StrategyStrategy

• Maintain our leading position in the jackup repair and refurbishment market

• Maintain focus on our repeat business clients

• Selectively expand our client base

• Expand the range and size of new build projects to be undertaken

• Continued expansion of the business in terms of capacity and quality of service

• Reinvestment to continue the growth of the Company

• Continue to deliver on commitments

• Provide shareholder value and satisfaction

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Appendix Appendix Market OverviewMarket Overview

Buoyant Energy Environment

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Buoyant Energy Environment

• Oil price has remained at a high level above $50 per barrel

• International oil majors continue long term investment in offshore developments

• National Oil Companies drive ahead with aggressive plans to raise domestic and International E&P

• Middle East offshore developments highly visible up to 2012

• India now a considerable market alongside Saudi Arabia, Qatar and UAE

• UAE maintains a leading position as the preferred construction, service and support area for Middle East market

• Arabian Gulf leads world energy supply accounting for one quarter of current production and proven reserves in excess of 60%

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Major Rig MarketsMajor Rig Markets

• Middle East and Indian markets dominate in world jackup utilisation and demand

• Ongoing redeployment of rigs from other regions to the Arabian Gulf

• A deficit of available jackup rigs in the Middle East set to continue in 2008

• Middle East jackup day rates rank highest globally

• Market remains buoyant with highly attractive day rates contracts with long term visibility

• Middle East now seen as a location for undertaking large semi-submersible upgrade and refurbishment projects

500

520

540

560

580

600

Supply Demand

Apr-07 Jul-07 Oct-07

World Rig ForecastWorld Rig Forecast

Source: ODS Petrodata

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FPSO MarketFPSO Market

• Highly visible sector with significant growth potential for Lamprell

• Over 65 projects in sector backlog

• Expenditure of over $6bn in 2007

• Limited worldwide construction capacity

• Floating solutions the new deepwater development preference

• Strongest geographical growth from West Africa and Brazil

• Multiple new operators/providers entering the market

• Lamprell now recognised as a leading provider of process topsides modules

• Middle East region has emerged as an alternative hub for complete FPSO conversions 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Actual Year of Spend

US

$m

Source: Infield systems

FPSO FPSO CapexCapex

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Land Rig MarketLand Rig Market• Worldwide rig count 9.3% increase per year

over the past five years

• Middle East rig count up 29% in 2006

• KSA growth plan from 82 to 120 land rigs by 2009

• Saudi Aramco overall drilling budget $5bn up to 2009

• Refurbishment market sustainable mid to long term

• Dubai seen as potential hub for major oilfield equipment services

01020304050607080

Iran Oman Pakistan KSA Yemen

Feb-06 Feb-07

27%32%

18%

38%

29%

Rig CountRig Count

Source: Baker Hughes/Schlumberger markets report/Upstream