Lamprell plc Annual Report & Accounts 2007
Growth
Registered Office:
15-19 Athol Street
Douglas
Isle of Man
IM1 1LB
Operations:
PO Box 5427
Dubai
United Arab Emirates
Telephone: +971 6 5282323
Fax: +971 6 5284325
Email: lamprell@lamprell.com
Website: www.lamprell.com
Lamprell plc
Annual Report & Accounts 2007 Lamprell plc is a leading contractor  
in the Arabian Gulf, providing specialist 
services to the offshore and onshore  
oil and gas industry. 
The principal markets in which the Company operates are:
»  upgrade and refurbishment of offshore jackup rigs;
»  new build construction for the oil and gas sector;
»  oilfield engineering services; and
»  EPC new build construction of jackup drilling rigs and liftboats.
Contents
Corporate Advisers
Principal Bankers
Lloyds TSB Bank plc
PO Box 3766
Dubai
UAE
Registrars
Capita Registrars (Jersey) Limited
PO Box 532
St Helier
Jersey JE2 3QA
Nominated Adviser and Broker
JPMorgan Cazenove Limited
20 Moorgate
London EC2R 6DA 
UK
Legal Advisers to the Company
Freshfields Bruckhaus Deringer
65 Fleet Street 
London EC4Y 1HS 
UK
Clyde & Co. 
PO Box 7001 
City Tower 2
Sheikh Zayed Road 
Dubai 
UAE
Auditors
PricewaterhouseCoopers
Sixty Circular Road 
Douglas
Isle of Man IM1 1SA
Megasilk is made from woodpulp which is sourced from 
sustainable forests and Elemental Chlorine Free (ECF), all 
inks used are vegetable based and 98% of this report can 
be recycled.
01 Highlights
02 Our facilities
04 Talented people
06 Year in review
07 Chairman’s statement
08  Chief Executive Officer’s 
statement
12  Expanding facilities
14 Operating review
20 Strong customer base
22 Financial review
26 Corporate social responsibility
28 Board of Directors
30 Directors’ report
33  Independent auditor’s report  
to the members of Lamprell plc
34 Consolidated income statement
35 Consolidated balance sheet
36 Company balance sheet
37  Consolidated statement of 
changes in equity
38  Company statement of changes 
in equity
39  Consolidated cash flow 
statement
40 Company cash flow statement
41 Notes to the financial statements
66  Definitions
ibc Corporate Advisers 01
Lamprell plc
Annual Report  
& Accounts 2007 
Highlights
Operational and financial highlights
 Lamprell continues to be the regional market 
leader in rig upgrade and refurbishment
High level of repeat business from existing clients
 Increased turnover and profit
 Increased long-term revenue visibility
 Broader client base
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$467 .3m up  42%
Turnover
$67 .3m up 104%
Operating profit
$71.5m up  112%
Net profit 02
Lamprell plc
Annual Report  
& Accounts 2007 
Major offshore oil 
producing areas
Lamprell is located in the United Arab 
Emirates in the Arabian Gulf, one of the 
most important oil and gas regions in 
the world. The Group has four facilities 
in three locations in the UAE and is  
in the process of developing a new, 
much larger facility in the Hamriyah 
Free Zone.
UNITED ARAB EMIRATES 03
Lamprell plc
Annual Report  
& Accounts 2007 
Sharjah facility
Lamprell’s facility in Sharjah is 
located in Port Khalid and has 
360m of direct quayside access  
at which the majority of jackup  
rig upgrade and refurbishment 
projects are executed.
Hamriyah facility
In response to the demand for its 
services Lamprell has established a 
facility in the Hamriyah Free Zone. 
This 52,000m² portside facility has 
195m direct quayside access.
Oilfield Engineering facility
The Oilfield Engineering facility  
was completed in 2005 and is a 
purpose-built facility located within 
the boundaries of the Jebel Ali 
facility. The Oilfield Engineering 
facility is accredited with all relevant 
API licences and certifications. 
Jebel Ali facility
Lamprell’s Jebel Ali facility was 
purpose built in 2002 and is one of 
the most modern in the region with 
internal overhead cranes suitable 
for carrying out fabrication and 
assembly activities under cover.
Our 
facilities 04
Lamprell plc
Annual Report  
& Accounts 2007 
Lamprell’s workforce has grown to over 4,000 and this 
growth has been built upon the loyalty and commitment 
of our long-term employees. 05
Lamprell plc
Annual Report  
& Accounts 2007 
Talented 
people
With Lamprell’s overriding focus on operational 
excellence and quality, our employees are a vital 
resource to the Company.
Lamprell’s workforce has grown to over 4,000 and 
this growth has been built upon the loyalty and 
commitment of our long-term employees. As we 
continue to grow and develop as a company we 
are still seeing this long-term commitment and 
loyalty of our key workforce as being at the heart 
of our ongoing success and confidence in the 
future. Their expertise and commitment helps 
drive innovation which enables us to provide 
added value to our customers.
We are totally committed to the growth of our 
employees as individuals, challenging them  
to progress through training and personal 
development.
Our overriding commitment in the workplace is to 
the health and safety of our employees. The Board 
provides health and safety leadership and is 
responsible for setting the overriding health and 
safety goals.
2007 4,331
2006 3,331
2005 2,499
Headcount
+30%
Percentage increase
2006>2007 06
Lamprell plc
Annual Report  
& Accounts 2007 
Year in review
Clients and contracts
 Commenced the simultaneous construc-
tion of the first two liftboats for Seajacks 
International
 Commenced construction of the first of 
the two Super 116E LeTourneau jackup 
drilling rigs awarded by Scorpion Rigs
 Successful launch of two of the three  
flash gas compression barges for SBM 
for the Kashagan Field Development  
in the Caspian Sea, the largest single  
project completed to date by Lamprell
 Major refurbishments of jackup drilling 
rigs for Global Santa Fe and Nabors Drilling
 Completion of the Tapti process decks  
for British Gas Exploration and Production 
India
Continued commitment to corporate and 
social responsibility
 Purchase of three state-of-the-art 
emergency vehicles for its sites in  
Sharjah, Jebel Ali and Hamriyah, 
highlighting Lamprell’s continuing effort 
and commitment to improve the health 
and safety of its employees
 In conjunction with Don Bosco Maritime 
Academy, Lamprell has initiated a 
technical training and development 
programme for the underprivileged street 
children in Gujarat, Madhya Pradesh and 
Maharashtra
Recognition
 Voted “Best Newcomer to the AIM Market” 
of the London Stock Exchange
 Lloyds List Middle East and India Oil and 
Gas Energy Award for an unprecedented 
third consecutive year
 Seatrade Middle East and India Energy 
Oil and Gas Award
•
•
•
•
•
•
•
•
•
•
This has been a year of 
significant opportunities for 
Lamprell both in terms of 
additional major projects and 
also opportunities to further 
expand the scope and reach  
of the Company. 07
Lamprell plc
Annual Report  
& Accounts 2007 
The Company’s order book is strong, and the demand 
for its services, particularly in the rig building and rig 
refurbishment businesses, are at an all time high.
Chairman’s statement
This is my first letter to you as Chairman of 
Lamprell plc, a position I have held since 
February 2008. It is a great honour and I look 
forward to working with you, our shareholders, 
as well as our customers and staff. 
Lamprell was founded by Steven Lamprell, 
your President, in Dubai more than thirty 
years ago, and today is a leading oil and 
engineering services, rig building and rig 
refurbishment company in the UAE, and one 
of the largest of its kind in the world. After I 
joined the Board in July 2006 we listed our 
shares on the London AIM market at a price 
of £1.95 per share (market capitalisation of 
£390 million) and the Company is growing 
rapidly.
Peter Whitbread was Chairman and CEO 
until it was decided to separate those roles  
in February this year. I am exceptionally 
pleased that he will continue as CEO.  
Under his direction the Company has grown 
significantly, and at the date of writing, has  
a market capitalisation of more than  
US$ 1.5 billion.  
The Company’s order book is strong, and 
the demand for its services, particularly in 
the rig building and rig refurbishment 
businesses, are at an all time high. Costs are 
increasing due to inflationary pressure, but 
margins remain healthy. The new Hamriyah 
facility will come on stream at the beginning 
of 2009 and this will give the Company 
additional capacity as it seeks to grow  
the business and capitalise on new  
business prospects.
The Board is now of the view that due to 
Lamprell’s successful growth since flotation, 
the Company will move its listing to the Main 
Market of the London Stock Exchange. This 
in turn will bring greater exposure, increase 
the Company’s profile, and attract a broader 
range of shareholders. The move is likely to 
happen in the fourth quarter of this year.
We see a long period ahead with high oil 
prices driving business in the worldwide oil 
services sector. Lamprell’s location in the 
Middle East, at the heart of the world oil and 
gas market, coupled with its long-standing 
reputation for quality and performance, 
provides an excellent  platform for long-term 
confidence in the ability of the Company to 
continue to develop and  expand in the 
prevailing positive market climate.
I believe that Lamprell is well positioned to 
weather the current turbulence in the world’s 
financial markets as we offer a compelling 
proposition unlike any of our competitors. 
We are debt free and maintain strong cash 
reserves and this, combined with Lamprell’s 
strong management team with many  
years of success under Peter Whitbread’s 
leadership, indicate the outlook for the 
Company continues to be extremely 
encouraging.
Peter G Birch
Chairman
Steven D. Lamprell
President 08
Lamprell plc
Annual Report  
& Accounts 2007 
Our ongoing commitment to quality, schedule, safety 
and customer service, has ensured that the Company 
has continued to benefit from the strong support that 
we receive from our clients and encouraging levels of 
repeat business. 
Chief Executive Officer’s statement
In this, the second Annual Report to 
Shareholders, I am pleased to be able to 
announce that we have had another 
outstanding year in 2007, having seen 
significant growth in revenues of 42% 
compared to 2006, and a net profit (adjusted 
for exceptional charges) for the year of  
US$ 86.2 million (and US$ 71.5 million after 
exceptional charges) which once again 
exceeded our initial projections for the year.
We are currently in a period of high oil prices 
and unprecedented demands on all aspects 
of the services provided by Lamprell. We 
continue to focus on our core business 
activities of drilling rig refurbishment, new 
build rigs and the fabrication of FPSO  
topside process modules. This focus, 
coupled with our ongoing commitment to 
quality, schedule, safety and customer 
service, has ensured that the Company  
has continued to benefit from the strong 
support that we receive from our clients and 
encouraging levels of repeat business. 
We see the current high level of oil and gas 
related activity, both onshore and offshore, 
coupled with a sustained high oil price, 
continuing for many years to come. In this 
underlying economic climate we see real 
opportunity for continued progressive growth 
and expansion of our Company interests 
both in the region and internationally. We 
also see continued commitment from our 
long-term clients supporting our declared 
intentions to expand and develop the 
Company over the coming years.
During 2007, we have seen a significant 
increase in new clients, some of whom have 
already become repeat clients. We have 
additionally commenced a range of major 
new build projects, with the two Scorpion 
LeTourneau Super 116 jackup drilling rigs 
and the two Seajacks liftboats being the 
primary projects that were started during  
the year. At the turn of the year we also 
successfully completed the largest single 
jackup rig rehabilitation and upgrade project 
ever undertaken by the Company, the Nabors 
Drilling 660 project, worth approximately 
US$ 77 million in revenue.
We have also started the construction of  
our new facility at Hamriyah which is on 
schedule to come on stream at the beginning 
of 2009.
At the beginning of 2008 we entered the year 
with an unprecedented forward visibility of 
contracted work in excess of US$ 580 million 
and a cash and bank balance of US$ 159 
million. We continue to run our business 
without debt and our organic expansion and 
development is supported from our own free 
cash flow. We have a strong balance sheet 
and we maintain a business model without 
claims or cases of litigation either against us 
or against our clients, subcontractors or 
suppliers. Against this background we enter 
the new financial year in an excellent position 
to capitalise on the opportunities that exist in 
this buoyant business climate.
All the initiatives we undertook in 2007 were 
consistent with our declared strategy laid out  09
Lamprell plc
Annual Report  
& Accounts 2007 
at the time of our IPO in October 2006. Our 
successful full year results are testament that 
we are pursuing the right strategy and we 
remain confident in our ability to maintain our 
growth and to continue to deliver shareholder 
value and customer satisfaction.
The Board
During 2007, and into 2008, there have been 
a number of actual and proposed changes to 
the Board of Directors of Lamprell plc. In 
early February 2008, I stepped down as 
Chairman of the Board handing over to Peter 
Birch, who previously held the position of 
Deputy Chairman. Peter brings a wealth of 
long-term corporate experience to the 
position of Chairman of the Board and is a 
well known and much respected figure within 
the City. 
This change is in preparation for our intended 
move to have a primary listing on the Main 
Market of the London Stock Exchange plc, 
subject to regulatory approvals, in the fourth 
quarter of 2008 and accords with the 
recommendations of the Combined Code. It 
also ensures that the continuing role as Chief 
Executive Officer can be carried out with a 
singular focus on the ongoing expansion and 
development of the Company.
As previously announced, David Moran will 
step down as Chief Operating Officer in  
May 2008, but will continue on the Board  
in the capacity of Director of Corporate 
Communications. This is an undertaking that 
demonstrates to the investment community 
the high level of importance that we place  
on the interface with our clients, investors, 
and market analysts, and carries with  
it a particular remit to broaden our investor 
base.
Nigel McCue, currently a Non-Executive 
Director, will take over the role of Chief 
Operating Officer in May 2008, bringing 
with him a wealth of experience in the  
oil and gas industry. I am confident that 
Nigel will continue to build upon the 
significant contribution he has already 
made to the management team in his  
Non-Executive role.
In August 2007 Jonathan Silver joined the 
Board of Lamprell plc as a Non-Executive 
Director. Jonathan has for many years been 
a principal legal advisor to the Company and 
has lived and worked in the United Arab 
Emirates for over thirty years and brings to 
the Board a huge amount of industrial, legal 
and local knowledge.
I would also like to particularly thank Steven 
Lamprell (President of the Company) for his 
ongoing support and enthusiasm in assisting 
in the growth and development of the 
Company; also to Peter Birch who, in his 
capacity as Chairman of the Board, is 
providing invaluable support to myself and 
the Board as we prepare to move to the Main 
Market of the London Stock Exchange.  
Market overview
Throughout 2007 we have seen a sustained 
high level of business activity in all sectors of 
the oil and gas services industry. In the 
Middle East we continue to see high levels of 
drilling activity, both onshore and offshore. 
We believe this market strength will continue 
for some years to come and expect to see a 
significant increase in the regional rig count 
over the next few years. There are no 
indications that any of the operators in the 
region are considering relocating any of their 
rig fleet away from the region. 
The majority of this rig count increase will 
most likely come from our existing client 
base, and we therefore anticipate that we will 
see many of these rigs come through the 
Lamprell facilities.
There continues to be a high demand world 
wide for deep water FPSO field developments 
and Lamprell is well placed to take advantage 
of these projects with its already well proven 
track record of quality and timely delivery of 
FPSO topside process modules.
The continued high oil price together with 
worldwide demand placing pressure on 
limited oil and gas service resources provides 
us with a high level of confidence that the 
current market conditions will prevail for 
some considerable period of time. We have 
already seen our long-term visibility for 
contracted work significantly increase 
through 2007 and we believe that this  
visibility will continue to improve through 
2008 and beyond.
Future developments
The construction phase of the new Hamriyah 
deep water facility in the Hamriyah Free  10
Lamprell plc
Annual Report  
& Accounts 2007 
In November 2007 , Lamprell was presented with the 
award of “Best Newcomer to the AIM Market” of the 
London Stock Exchange at the annual AIM Awards.
Zone, in the United Arab Emirates, is currently 
well underway and on schedule, having 
commenced construction works in the early 
part of 2008. The facility will be ready to 
commence fabrication activities in early 
2009, and progress is in line with 
expectations.
When completed, the new facility will have  
a developed area of 250,000m
2
 with a 
deepwater berthing quay wall 1,250m in 
length and 9m deep. This will enable us to 
work on up to 10 rigs simultaneously and 
construct up to three new build jackups. The 
new facility will also enable us to move into 
the refurbishment of drill ships and semi-
submersible drilling units which, up to this 
time, we have been unable to service in any 
significant capacity because of space and 
water depth constraints. 
Our existing client base is looking very 
positively at the potential that this new facility 
will offer to them to provide further services 
to meet their ever increasing regional needs.  
We are additionally developing and expanding 
our facilities at the Jebel Ali facility with further 
workshops, client offices, corporate offices 
and warehousing to support the planned 
increase in liftboat, tender barge and FPSO 
process module building which we foresee 
arising this year and beyond.
Awards
In November 2007, Lamprell was presented 
with the award of “Best Newcomer to the 
AIM Market” of the London Stock Exchange 
at the annual AIM Awards evening in London, 
which we accepted with a great deal of pride. 
In December 2007 Lamprell received further 
industry recognition through the award of the 
Lloyd’s List Middle East and India Oil and 
Gas Energy Award for an unprecedented 
third consecutive year and the Company was 
also the recipient of the Seatrade Middle 
East and India Energy Oil and Gas Award 
earlier in the year. Both of these industry 
awards set out to recognise the Company or 
organisation which has demonstrated the 
highest levels of business initiative, creativity, 
commitment to investment and growth, and 
above all, a company which has clearly 
demonstrated a strong and committed safety 
culture.
In 2007 Lamprell was also accredited with 
the management system certificate ISO 
14001: 2004 and the Occupational, Health 
and Safety Assessment Series, OHSAS 
18001: 1999.
Dividend
As previously stated, it has been our intention 
to reward shareholders with a dividend 
subject to the performance of the business 
and the cash flow requirements of our 
expansion plans. Given the strength of 2007 
for the Company and our continued growth, 
the Board of Directors is recommending a 
final dividend payment of 12.25 cents per 
ordinary share, with a Sterling equivalent of 
6.17 pence per ordinary share. This will be 
payable, when approved, on 18 June 2008 
to eligible shareholders on the register at 
16 May 2008.
Chief Executive Officer’s statement
continued 11
Lamprell plc
Annual Report  
& Accounts 2007 
This has once again been an outstanding year for 
Lamprell. We have seen significant revenue and 
earnings growth, exceeding all targets set at the 
beginning of the year, alongside growth across all  
our operating businesses.
Outlook
This has once again been an outstanding 
year for Lamprell.  We have seen significant 
revenue and earnings growth, exceeding all 
targets set at the beginning of the year, 
alongside growth across all our operating 
businesses. This is coupled with an ever 
improving forward visibility of revenue on 
contracted work.
We continue to maintain a strong balance 
sheet with no debt. This is combined with 
strong cash generation that will support our 
investment plans for the new facilities which 
in turn will enable us to realise our expansion 
plans for the business.
Going forward we see these dynamics for 
growth, development and success helping 
to underpin the business model that we have 
and the strong client retention that we have 
maintained.
It is the commitment of a loyal and dedicated 
workforce and management team that has 
created and maintained this success and it 
will be these same qualities that will continue 
to be the essential elements that that will 
enable us to continue the development, 
growth and success of the business.
On behalf of the Board of Directors and from 
myself personally, I would like to thank 
everyone in the Lamprell team for the 
tremendous efforts that have been made 
throughout the past year. I am confident that 
we can continue to deliver the highest 
standards of service to our customers, win 
new work and reward our shareholders for 
their support. After a successful 2007, I firmly 
believe that we can look forward with 
confidence to an equally successful 2008 
and beyond.
Peter Whitbread 
Chief Executive Officer 12
Lamprell plc
Annual Report  
& Accounts 2007 
When completed, this state-of-the-art facility will be one 
of the most modern in the Middle East, with a quayside 
capacity to execute up to 10 jackup rig upgrade and 
refurbishment projects at any one time. 13
Lamprell plc
Annual Report  
& Accounts 2007 
Expanding 
facilities
In response to the current high workloads and  
to meet the anticipated additional needs of the 
business going forward, Lamprell is developing a 
new 250,000m
2
 facility in the Hamriyah Free Zone, 
with operations planned to commence at the 
beginning of 2009.
This facility, when fully developed, will have 1.25km 
of direct quayside access and a low tide water 
depth of 9m.
When completed, this state-of-the-art facility will 
be one of the most modern in the Middle East, 
with a quayside capacity to execute up to 10 
jackup rig upgrade and refurbishment projects at 
any one time. It will also contain large covered 
and open fabrication areas that will allow Lamprell 
to undertake major new build projects, such as 
the construction of jackup rigs and the integration 
of process modules onto FPSO vessels.
We are additionally developing and expanding  
our facilities at the Jebel Ali facility with further 
workshops, client offices, corporate offices and 
warehousing to support the planned increase in 
liftboat, tender barge and FPSO process module 
building which we foresee arising this year  
and beyond. 14
Lamprell plc
Annual Report  
& Accounts 2007 
Whilst focusing on our core business during the year, 
Lamprell has now expanded its scope of projects  
to include EPC new build projects, such as the 
construction of jackup drilling rigs and liftboats.
Operating review
Lamprell had a very successful year in 2007, 
with all operating facilities successfully 
working on a wide range of different projects. 
During the year Lamprell has not only 
maintained and indeed strengthened its 
relationships with its existing customers, but 
also added a number of new key customers 
to our expanding client base. The market 
environment has remained buoyant 
throughout the year and this has enabled us 
to achieve our highest volumes of work to 
date and to exceed the operational targets 
we established at the beginning of the year.   
The current financial year has started well 
and we continue to receive a high level of 
enquiries for our services.  This healthy new 
business pipeline, combined with the 
buoyant trading environment, gives us 
confidence that we will build on the success 
achieved in 2007.
Lamprell endeavours to provide a 
differentiated quality service that is founded 
on a flexible and proactive approach to the 
management and execution of projects. 
Within this operational framework and by 
using established and proven contracting 
models and strategies, Lamprell focuses on 
ensuring that projects are executed safely, 
whilst maintaining high levels of quality and 
adhering to agreed schedules. By following 
this operational philosophy which is central 
to our proposition, we continue to win repeat 
business as our customers value working 
alongside Lamprell.
A function of the buoyant business 
environment in the oil and gas sector and 
ensuing high levels of drilling activity is that 
resources are becoming increasingly scarce. 
During 2007 we therefore initiated a process 
of enhancing our methods of procurement 
as part of an integrated approach to supply 
chain management and we are confident 
that we can build on this initiative in the future 
to the mutual benefit of both our customers 
and ourselves.
Whilst focusing on our core business during 
the year, Lamprell has now expanded its 
scope of projects to include EPC new build 
projects, such as the construction of jackup 
drilling rigs and liftboats. These projects are 
a natural extension of our refurbishment 
activities and they provide greater revenue 
visibility which allows us to take a longer term 
approach to the development of our facilities 
and the management of our internal 
resources.
The principal markets in which Lamprell 
operates, and the principal services we 
provide are:
upgrade and refurbishment of offshore 
jackup rigs;
new build construction for the offshore oil 
and gas sector;
oilfield engineering services, including the 
upgrade and refurbishment of land rigs; 
EPC new build construction of jackup 
drilling rigs and liftboats.
The operational aspects of these business 
activities are reviewed as follows:
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• 15
Lamprell plc
Annual Report  
& Accounts 2007 
Upgrade and refurbishment of offshore 
jackup rigs
During 2007 Lamprell executed refurbishment 
and upgrade works on a total of twenty four 
jackup rigs and one semi-submersible drilling 
rig. The rigs, owned by a wide range of 
international drilling contractors including 
Nabors Drilling, Global Santa Fe, Noble 
Drilling, Transocean, Rowan, National Drilling 
Company and Japan Drilling Company, were 
all berthed at our Sharjah and existing 
Hamriyah facilities. 
Refurbishment and upgrade projects such 
as these vary greatly in scope from project  
to project and depend on the existing 
condition of each rig and the owner’s upgrade 
requirements. A minor project can have a 
work schedule lasting a few days, whereas a 
major upgrade project with a significant 
engineering requirement can last for twelve 
months or more. Typical upgrade and 
refurbishment projects include some of the 
following work scopes:
leg extensions and/or strengthening;
conversion of slot rigs to cantilever mode;
living quarters extension, upgrade and 
refurbishment;
engine replacement and re-power works;
mud process system upgrade and/or 
refurbishment;
helideck replacement, upgrade and/or 
refurbishment;
condition-driven refurbishment, including 
structural steel and piping replacement 
and painting.
•
•
•
•
•
•
•
The jackup rig upgrade and refurbishment 
projects carried out in 2007 included:
Nabors Drilling 660
The rig, which was relocated from the Gulf of 
Mexico after it was severely damaged by 
hurricane “Katrina”, arrived at our Hamriyah 
facility in late 2006 and has been the largest 
project of its type undertaken to date by 
Lamprell. The work scopes on this project 
included the construction and installation of 
replacement leg sections and spud cans,  
the complete renewal of the rig’s electrical 
system including the installation of five new 
Caterpillar 3516 engines and extensive steel 
renewals and painting work. The project has 
been completed in the first quarter of 2008, 
and the rig will now undertake a long-term 
drilling programme in the Arabian Gulf.
Global Santa Fe High Island 2 & 4 and 
Main Pass 1 & 4
These four rigs were mobilised to the  
Middle East to work for Saudi Aramco and 
prior to commencing their contracts they 
required extensive refurbishment works.  
The work scopes on the rigs included steel 
and piping replacement, electrical works  
and accommodation refurbishment. These 
projects are particularly noteworthy as the 
lead time allotted to undertake the project 
was very short. Despite the aggressive 
schedule, Lamprell completed all of the work 
to the satisfaction of GSF and recorded three 
million man hours of work on the projects 
without a single LTI. 16
Lamprell plc
Annual Report  
& Accounts 2007 
Engineering services and procurement activities provide 
a critical service to our customers and reflect Lamprell’s 
flexible approach to servicing our clients’ needs.
Grup Servicii Petroliere Jupiter
In addition to the works executed at our 
facilities in the UAE, Lamprell undertook an 
extensive refurbishment and upgrade work 
scope on GSP’s rig Jupiter at a shipyard in 
Croatia. The project commenced in 2006 
with the prefabrication of a large range of 
steel and piping components at our Sharjah 
facility including a cantilever and drill floor. 
These components were then shipped to 
Croatia where they were installed on the rig. 
In addition to the installation of these 
prefabricated items, the existing rig 
accommodation was refurbished and 
extensions were added to increase its 
capacity, the existing rig cranes were replaced 
and the rig was completely repainted. This 
was a major project for the Company and 
illustrates our core competencies are 
transferable geographically. The experience 
gained on this project will be invaluable if we 
perform future major refurbishment projects 
outside the UAE.  
 
Offsite and other services
In addition to major refurbishment projects 
we also undertook a wide range of minor 
projects including the supply of engineering 
services, procurement activities and various 
smaller rig refurbishment projects carried out 
on board rigs whilst they remain in operation. 
These projects do not account for a large 
proportion of revenue but they provide a 
critical service to our customers and reflect 
Lamprell’s flexible approach to servicing our 
clients’ needs.
Operating review
continued
New build construction for the offshore 
oil and gas sector
Throughout 2007 our Jebel Ali facility has 
been working on a variety of major projects 
for clients including Single Buoy Moorings, 
Saipem, British Gas Exploration and 
Production India Limited and Aker FP. These 
projects all require the utilisation of our state-
of-the-art facility as well as high levels of 
project management control to ensure that 
safety and quality standards are maintained 
whilst keeping a strong focus on delivering 
on schedule.
The Jebel Ali facility undertakes a range of 
different new build construction projects 
which in 2007 included:
Offshore fixed structures:  
topside platforms
BG India Limited Tapti topside decks
The contract, awarded in 2006, included the 
fabrication, mechanical completion and load 
out of the TCPP (East and West) and MTA 
decks including all necessary engineering 
and the procurement of materials and 
equipment. The schedule for this project was 
very ambitious, but Lamprell delivered the 
decks ahead of schedule and as a result BG 
India were able to secure first gas earlier than 
planned.
Process barges
SBM Kashagan flash gas compression 
barges
In 2006 Lamprell commenced the construc-
tion of three process barges for SBM. These 
barges form part of the ongoing development  17
Lamprell plc
Annual Report  
& Accounts 2007 
of the Kashagan project, the world’s largest 
oil and gas project, and each weighs in 
excess of 3,000 tonnes, including 1,800 
tonnes of topside process components. In 
July 2007, the first two barges were 
successfully loaded out from our Jebel Ali 
facility onto the Lamprell owned semi-
submersible barge, the “Hamriyah Pride”.  
The third barge remained at our facility until 
the first quarter of 2008 when it was also 
delivered to SBM. Apart from the operational 
and technological successes achieved on a 
project of this magnitude, the project was 
also constructed within our rigorous safety 
guidelines with more than 3.6 million hours 
being expended without an LTI.
FPSO process modules
Aker FP SMART FPSO process modules
At the end of 2007, Lamprell completed  
the fabrication of process modules for  
Aker Kvaerner Production Systems. These 
modules were designed and constructed  
as part of a generic and modular design 
concept to suit typical production of around 
60,000 barrels of oil per day. The design was 
developed by Aker throughout the fabrication 
phase of the project and this approach 
required that both the Aker and Lamprell 
project teams had to work very closely to 
minimise the impact that design changes 
could have on the construction sequence 
and delivery date. This team approach  
to managing the project worked extremely 
well and the modules were delivered in 
December 2007.
SBM Frade FPSO process modules
In the first quarter of 2007 Lamprell was 
awarded the contract to build seven process 
modules and turret manifold deck by SBM 
for their Frade FPSO. The work scope 
includes structural, piping, E&I and pressure 
vessel works and on completion, the modules 
will be delivered to SBM ready for integration 
onto the converted tanker currently located 
at Dubai Drydocks.
Oilfield Engineering services
Lamprell’s Oilfield Engineering operation is 
located within our main Jebel Ali facility and 
it was busy throughout 2007, executing 
contracts for a variety of clients including 
Nabors Drilling, KCA Deutag and Ensign. 
Projects executed during 2007 included  
the upgrade and refurbishment of nine land  
rigs, as well as the construction of land  
camps and the inspection and overhaul of 
mechanical and rotary equipment. In addition 
to these projects, we also executed a number 
of minor offsite projects to assist our clients 
by providing our services on location at 
drilling sites.
During the year Lamprell also signed  
a memorandum of understanding with 
LeTourneau Technologies to build a new 
build 2,000 horsepower land rig. This  
rig is being fabricated to LeTourneau’s 
“Lightening Rig” design and will be ready  
for delivery in mid 2008.
Engineering, Procurement and 
Construction
As part of Lamprell’s strategic growth plan, 
in 2007 we expanded our range of projects 
to include major EPC new build projects. 
These projects can be executed at either   18
Lamprell plc
Annual Report  
& Accounts 2007 
New and promoted employees with relevant skills and 
new ideas will enhance the Company’s progress as it 
evolves, with clearly defined roles and responsibilities.
our Jebel Ali or current Hamriyah facilities 
and they underpin the expansion of our 
business activities to larger, more prestigious 
projects. 
Seajacks liftboats
In February 2007 we secured the award of 
contracts from Seajacks International Limited 
for two harsh environment special purpose 
self-propelled four legged jackup liftboats. 
These turnkey contracts cover all aspects of 
project development from design to delivery. 
The first unit will be delivered in early 2009 
with the second unit being delivered four 
months later. These projects are being built 
at our Jebel Ali facility and are progressing 
well and on schedule.
Scorpion S116E jackup drilling rigs
In July 2007 we successfully negotiated a 
contract with Scorpion Rigs Ltd for the 
construction and delivery of a completely 
outfitted and equipped, LeTourneau 
designed, Super 116E jackup drilling unit. 
This contract was followed later in the year 
by the award of another contract by Scorpion 
to build a second rig. These contracts will 
allow Lamprell to utilise our significant 
experience gained in the refurbishment 
sector and the construction of both units is 
progressing on schedule and on budget. The 
first rig will be delivered in mid 2009 and the 
second at the end of 2009.
Human resources
Attracting and retaining talented staff is one 
of the key issues we face in the oil and  
gas sector. At Lamprell we consider our 
employees to be our greatest asset and in 
support of this core principle of our business 
Operating review
continued
the Human Resources Department has 
undergone a transformation with the addition 
of a dedicated Recruitment Specialist and 
more recently the introduction of a senior  
HR professional to oversee the HR and 
Administration support functions.
Managing such a culturally diverse workforce 
presents both challenges and opportunities 
for Lamprell in the coming years. To prepare 
us for these challenges we will be reorganising 
the Human Resources Department to 
respond with innovative, professional and 
efficient solutions and support. Providing 
integrated HR systems with consistent 
practices will provide stability to both the 
employee and the Company. The adoption 
of these HR and administrative guidelines will 
impart a clear statement of employee 
expectations, reduce duplication, increase 
efficiency and ensure stability across 
functions and employees.
New and promoted employees with relevant 
skills and new ideas will enhance the 
Company’s progress as it evolves, with 
clearly defined roles and responsibilities. The 
continued development of our performance 
review process that captures a continuous 
improvement and development philosophy 
will ensure a stable and dependable delivery 
of services through a trained and sustained 
workforce.
We aim to provide a safe and supportive 
work environment to our employees from 
diverse cultural backgrounds and in an 
environment that provides a competitive 
compensation programme that is affordable 
to the Company. We believe this continues   19
Lamprell plc
Annual Report  
& Accounts 2007 
to be our market differentiator and will 
strengthen our position as an “employer of 
choice”. These will continue to be our goals 
in 2008 and beyond.  
Don Bosco Maritime Academy
To continue to increase the number of 
qualified workshop personnel, both now and 
in the future, an Indian training programme 
was established in early 2007. In collaboration 
with our Indian based training provider, Don 
Bosco Maritime Academy (in Mumbai, India), 
an advanced fabrication and welding training 
facility has now been established and, whilst 
it is still early days, the results have been 
extremely encouraging. This facility provides 
our trainees with hands-on, heavy-
engineering experience, thus substantially 
improving their capabilities prior to joining 
Lamprell. To date, some 173 personnel have 
successfully undertaken this course and 
have been relocated for permanent 
employment at our facilities in the UAE. An 
additional 47 people will complete the training 
course in March 2008. 
Furthermore, we are working with and 
supporting the local community through a 
corporate social responsibility programme 
which has been established with the Don 
Bosco Salesian Society in Mumbai Province. 
This will provide annually up to 150 personnel 
from poor and underprivileged families with 
training in basic first year trades skills. For 
those trainees capable of undertaking further 
studies, a learning pathway has been created 
so that they can further improve their skills to 
a level acceptable to Lamprell, with the 
potential of eventual employment within the 
Company.
Alongside these practical training 
programmes, we are providing financial 
support to a shelter for homeless street 
children. This shelter is located in Vadodara 
and serves as a halfway house with the aim 
of returning these children safely to their 
families. 
General recruitment
The recruitment drive continues with 4,331 
permanent staff in the Company at the end 
of 2007, a 30% increase in headcount during 
the year. Our search for new and talented 
staff is a continual process as a result of the 
competitive market in which the Company 
operates.  As a result of the growth that 
Lamprell has experienced, we aim to recruit 
staff with the requisite skills and professional 
experience to add value to the Company and 
the service which we offer to our clients.  
This is particularly so in the areas of 
engineering and project management, where 
we clearly differentiate ourselves from our 
competitors.  
Operating facilities
A key part of our strategy is to facilitate 
organic growth. To this end, we have 
maintained a high level of capital investment 
throughout 2007. The aim of this investment 
is to increase our capacity, increase our 
existing levels of productivity and improve 
the working environment for both yard and 
administrative personnel.
In Jebel Ali we commissioned the con-
struction of an extension to our existing 
production facility. This building has three 
levels and it will provide increased storage 
capacity on the ground floor and additional 
office space for production personnel on the 
first and second floors. In addition we have 
started the design of a new welfare and office 
building, as well as a corporate office. The 
construction of both these buildings will 
commence in 2008.
In 2007 we also completed the concept plan 
for our new 250,000m
2
 facility in the Hamriyah 
Free Zone and subsequently awarded the 
detailed design and construction contracts 
for various elements of our facility. In parallel 
to these internal activities, the marine work 
contract, including the dredging of the 
access channel and quay wall construction 
work, has been awarded by the Hamriyah 
Free Zone Authority and the selected 
contractor has subsequently commenced 
work. Our facility, when completed, will 
include 1.25km of quayside dredged to 9m in 
depth, offices, workshops and construction 
areas. The development is on schedule and 
we will be operational in early 2009.
During the year our investment continued  
in operating equipment including forklift 
trucks, generators and automated welding 
equipment; buildings as we develop the 
infrastructure across all facilities; and cranes 
which includes initial payments on larger 
units with increased delivery lead times. 
David Moran
Chief Operating Officer 20
Lamprell plc
Annual Report  
& Accounts 2007 
In addition to the high level of repeat business  
from existing clients, we have been successful  
in substantially broadening our client base. 21
Lamprell plc
Annual Report  
& Accounts 2007 
Strong 
customer  
base
Oil and gas exploration activities in the Middle 
East continue to increase and this has created an 
increase in demand for offshore jackup drilling 
units in the region. 
Consequently many drilling contractors have 
relocated jackup rigs from other regions into the 
Middle East and this trend is expected to continue 
during 2008. These additional units, as well as the 
existing units based in the region, will continue to 
provide a long-term refurbishment workload to 
consolidate our position as the regional market 
leader in rig upgrade and refurbishment.
The market for new build construction for the 
offshore oil and gas sector is also very strong, 
with the global capital expenditure backlog 
continuing to grow. In addition to the high level of 
repeat business from existing clients, we have 
been successful in substantially broadening our  
client base. 22
Lamprell plc
Annual Report  
& Accounts 2007 
2007 67.3
2006 33.0
2005 29.4
Financial review
Operating profit
+ 1 0 4%
Percentage increase
2006>2007
Results for the year from operations
  2007   2006 
 US$ ‘000 US$ ‘000
Revenue  467,332  329,587 
Gross profit  107,800   73,246
Operating profit   67,301    32,963
Net profit 71,550   33,815
EBITDA 74,830   38,045
Group revenue increased by 41.8% to US$ 
467.3 million (2006: US$ 329.6 million) 
reflecting strong growth over the prior year. 
This was largely driven by significant 
increases in both of Lamprell’s key business 
activities of rig refurbishment, based in 
Sharjah, and offshore new build activity at 
the Jebel Ali facility. The key drivers for the 
increase in revenue generated from rig 
refurbishment were a number of high value 
projects including the Global Santa Fe four 
rig fleet and the refurbishment of the Nabors 
660 rig. This revenue also reflected revenue 
from the first Scorpion Offshore Super 116E 
jackup rig which commenced construction in 
the second half of the year. 
The increase in revenue generated from 
offshore construction projects largely reflects 
the completion of a number of projects with 
extensions in scope in the first half of the year 
and progress on a number of FPSO projects 
in the latter half of the year. In addition,  
the second half reflects the recognition of 
revenues on the new build liftboat projects 
for Seajacks International Limited. Revenue 
from Oilfield Engineering services, related to 
the refurbishment of land rigs and land 
camps, reflected a strong performance for 
the year. The Group revenue includes the 
results of International Inspection Services 
Limited, with revenue growth resulting from  
a significant increase in the demand for  
the inspection and non-destructive testing 
services the subsidiary provides.
The cost of sales for the year was US$ 359.5 
million (2006: US$ 256.3 million) with the 
increase driven predominantly by the 
increase in the revenue during the year. As a 
percentage of revenue, cost of sales has 
decreased from 77.8% in 2006 to 76.9% in 
2007, reflecting the improved sales pricing of 
projects together with increased operational 
efficiencies. Material costs have increased as 
a percentage of total contract costs as the 
level of procurement undertaken on projects 
increased. Also the level of staff cost has 
increased as a percentage of total contract 
costs as we seek to increase our permanent 
headcount to meet increased activity. 
Consequently the level of sub-contracted 
labour costs incurred in the year has 
decreased.   
Gross profit increased by 47.2% to US$ 107.8 
million (2006: US$ 73.2 million) resulting in a 
gross margin of 23.1% (2006: 22.2%).  This 
improvement is attributable to improved 
average margins across most areas of 
activity but particularly in new build activities 
in the Jebel Ali facility where a number of 
major projects were completed during the 
year. These projects included the Tapti 
process topsides for British Gas in India, the 
Kashagan flash gas compression barges  23
Lamprell plc
Annual Report  
& Accounts 2007 
2007 16.0
2006 11.5
2005 15.8
2007 74.8
2006 38.0
2005 33.0
EBITDA margin
%
EBITDA
US$ million
+97%
Percentage increase
2006>2007
built for Single Buoy Moorings and the Vitoria 
FPSO process modules built for Saipem, 
and in all projects positive variations were 
seen. Rig refurbishment activities carried  
out in the Sharjah and Hamriyah facilities 
continue to provide very positive margins 
along with a significant amount of increased 
work scopes through variation orders, which 
further supported margin growth.
Operating profit in 2007 was US$ 67.3 million 
(2006: US$ 33.0 million) reflecting an increase 
of 104.2%. This includes exceptional charges 
in the current year for share based payments 
of US$ 14.7 million (2006: US$ 15.6 million) 
related to shares gifted in connection with 
the admission of Lamprell plc to AIM. 
Exceptional charges in 2006 also included 
US$ 7.5 million incurred towards various 
legal and professional charges in connection 
with the admission of the Company to  
AIM which were charged to general and 
administrative expenses. The operating profit 
before these exceptional charges amounts 
to US$ 82.0 million (2006: US$ 56.1 million) 
representing an increase of 46.1% over the 
previous year and reflects the strong growth 
in revenue and increased gross margin 
achieved in 2007. 
The operating profit margin increased from 
10.0% in 2006 to 14.4% in 2007 reflecting 
strong revenue growth, increased gross 
margin and lower exceptional charges. The 
operating margin prior to exceptional charges 
increased to 17.5% (2006: 17.0%). 
The net profit attributable to the shareholders 
of Lamprell plc increased by 111.6% to US$ 
71.5 million (2006: US$ 33.8 million). The net 
margin increased to 15.3% (2006: 10.3%) 
due primarily to the 4.4% increase in the 
Group’s operating margin and an increase in 
net interest income to US$ 4.2 million (2006: 
US$ 0.9 million) largely reflecting higher 
average cash balances held by the Group 
during the year. The net profit before 
exceptional charges amounts to US$ 86.2 
million (2006: US$ 56.9 million) reflecting an 
increase of 51.4% over the previous year. The 
net margin before exceptional charges 
increased to 18.4% (2006: 17.3%).
 
EBITDA increased to US$ 74.8 million (2006: 
US$ 38.0 million) reflecting an increase of 
96.7% over the prior year. EBITDA margin for 
the year increased to 16.0% (2006: 11.5%) 
and the increase has largely arisen due to the 
higher operating margin as a result of lower 
exceptional charges booked in the current 
year and also operational gearing as driven 
by the significant increase in revenue in the 
year. Prior to charging these exceptional 
costs, EBITDA increased to US$ 89.5 million 
in 2007 with a margin of 19.1% (2006: 
18.6%).
Interest income
Interest income of US$ 4.2 million (2006: 
US$ 0.9 million) relates mainly to bank 
interest earned on surplus funds deposited 
on a short-term basis with the Company’s 
bankers. The increase reflects a higher level 
of funds on deposit during the year and a 
marginal increase in the average deposit 
rates. 24
Lamprell plc
Annual Report  
& Accounts 2007 
Financial review
continued
Taxation
The Company, which is incorporated in the 
Isle of Man, has no income tax liability for  
the year ended 31 December 2007 as it is 
taxable at 0% in line with local Isle of Man tax 
legislation. Prior to 6 April 2007 the Company 
was registered as a tax exempt entity, 
however, from that date the tax exempt 
company status ceased to exist in Isle of 
Man legislation. The Group is not currently 
subject to income tax in respect of its 
operations carried out in the United Arab 
Emirates, and does not anticipate any liability 
to income tax arising in the foreseeable 
future.
Earnings per share
Fully diluted earnings per share for 2007 
increased to 35.72 cents (2006: 16.91 cents) 
reflecting primarily the improved profit of the 
Group for the year.
Operating cash flow and liquidity
The Group’s net cash flow from operating 
activities for the year was US$ 176.8 million 
(2006: US$ 16.6 million) largely reflecting a 
significant increase in advance payments 
received from customers, primarily from the 
new build liftboat and jackup projects. The 
amounts due to customers on contracts was 
US$ 120.1 million (2006: US$ 11.9 million) 
which includes cash advances due to 
customers of US$ 111.5 million (2006: US$ 
3.4 million). Other working capital movements 
reflect short-term timing differences in 
collections from debtors and a decrease in 
amounts due from customers on contracts 
of US$ 24.9 million (2006: US$ 36.9 million) 
reflecting a lower level of accrued income at 
the year end. Contract work-in-progress 
amounting to US$ 54.0 million (2006: US$ 
nil) largely reflects advances made to 
subcontractors on key projects and results in 
reducing the cash flow from operating 
activities.
Investing activities for the year absorbed US$ 
21.4 million (2006: US$ 23.0 million) as a 
result of a significant investment in property, 
plant and equipment amounting to US$ 15.0 
million (2006: US$ 24.0 million) largely 
comprising the purchase of operating 
equipment and investment in new buildings. 
The outstanding purchase consideration due 
to the previous Holding Company for the 
purchase of Inspec, amounting to US$ 3.0 
million, was also settled in the year. This 
investment activity was offset by significant 
interest income of US$ 4.2 million received 
from surplus funds. 
Net cash used in financing activities was US$ 
22.6 million (2006: US$ 7.8 million). This 
represents dividend payments of US$ 22.5 
million (2006: US$ 26.3 million) including  
the settlement of amounts due to the  
previous Holding Company comprising pre 
IPO dividends of US$ 5.0 million.
Capital expenditure
Capital expenditure on property, plant and 
equipment during the year amounted to US$ 
15.0 million (2006: US$ 24.0 million). The 
main area of expenditure was the investment 
in operating equipment amounting to US$ 
6.4 million to support the growth in activities  25
Lamprell plc
Annual Report  
& Accounts 2007 
2007 35.7
2006 16.9
2005 14.9
experienced during the year and to replace 
hired equipment where this was deemed 
cost effective. Expenditure on cranes reflects 
an investment of US$ 2.4 million. Further 
expenditure on buildings and related 
infrastructure at Group facilities amounted to 
US$ 3.3 million with additional committed 
expenditure amounting to US$ 14.0 million 
reflecting the development of the infra-
structure of the Company at all facilities 
including initial expenditure at the new 
Hamriyah facility.
Shareholders’ equity
Shareholders’ equity increased from US$ 
89.9 million at 31 December 2006 to US$ 
158.8 million at 31 December 2007. The 
movement mainly reflects the retained  
profits for the year of US$ 71.5 million net  
of dividends declared of US$ 17.6 million. 
The movement also reflects a credit for the 
accounting of share based payments of US$ 
14.9 million made to certain Directors and 
employees of the Group and charged to 
General and administrative expenses.
Shareholders’ equity includes a Merger 
reserve amounting to US$ 22.4 million that 
was created in the year ended 31 December 
2006 as a result of Lamprell plc, on 
25 September 2006, entering into a share  
for share exchange agreement with LEL  
and LHL under which it acquired 100% of  
the 49,003 shares of LEL from LHL in 
consideration for the issue and transfer to 
LHL of 200,000,000 shares of the Company.  
This acquisition was accounted for using the 
uniting of interests method and the difference 
between the nominal value of shares issued 
by the Company (US$ 18.7 million) and the 
nominal value of LEL shares acquired (US$ 
0.082 million) was taken to the Merger 
reserve. In addition, during 2006 LEL 
acquired 100% of the legal and beneficial 
ownership of Inspec from LHL for a 
consideration of US$ 4 million on 
11 September 2006. This acquisition was 
accounted for using the uniting of interests 
method and the difference between the 
purchase consideration (US$ 4 million) and 
share capital of Inspec (US$ 0.15 million) was 
taken to the Merger reserve. 
Dividends
For the year ended 31 December 2007, the 
Board of Directors of the Group having duly 
considered the profit earned, cash generated 
during the year and taking note of the capital 
commitments for the year 2008, recommend 
a final dividend of 12.25 cents per share. The 
basis of the recommendation is in line with 
the dividend policy set out in the admission 
document issued at the time of the Company 
listing on AIM. 
Scott Doak
Chief Financial Officer
+ 1 1 1 %
Percentage increase
2006>2007
Earnings per share (diluted)
US cents 26
Lamprell plc
Annual Report  
& Accounts 2007 
Corporate social responsibility
A longstanding commitment to the  
local community
At Lamprell, we recognise the value of 
fulfilling our responsibilities as a corporate 
citizen, believing that by doing so we will 
bring benefits to all our stakeholders. Having 
been based in Dubai since 1977, the 
Company is rooted in a community within 
which it has worked for over thirty years and 
it has both benefited from and been a 
contributor to that community’s development 
during that period. As a result of both this 
history and the international nature of our 
business, we believe we are fortunate to have 
a local business with a genuinely global 
perspective, and a rich variety of cultures 
and backgrounds from which to draw 
expertise and experience.
Formalising our principles
Our commitment to act as a responsible 
corporate player has long been reflected 
throughout the entire organisation, but the 
Group has recently formalised this approach 
by creating and implementing a set of policies 
that state the principles by which we seek to 
manage our operational activities, work with 
our staff and host communities, and minimise 
our impact on the environment.
Our business, the provision of construction 
services to the oil and gas industry, requires 
the highest standards of engineering skill 
and Health, Safety and Environment 
awareness. Our fundamental principle is to 
carry out these activities in a way that delivers 
the best possible product to our customers 
whilst minimising risks and maximising 
rewards to our wider stakeholders.
Accordingly, when we make all our investment 
and operational decisions, we take account 
of the social and environmental impacts that 
they may have, and minimising these is a 
central part of our decision-making process.
As a publicly listed company our aim is to 
ensure that our reporting meets all the 
requisite levels of scrutiny for a business of 
our size and areas of activity. Maintaining our 
reputation by aligning our commercial goals 
with our ethical standards is an essential part 
of achieving this aim. 
Social initiatives
In 2007, we continued to work closely with 
local communities, business partners and 
regulatory authorities to make a positive 
difference within the localities where we 
operate.
In particular we at Lamprell are aware of the 
cultural mix of our employees with  
some 80% originating from India. In   
January 2007 Lamprell established a training 
and development programme called 
“LEARN2WORK”, developed jointly with the 
Don Bosco Maritime Academy in Mumbai, 
India. This had been initially set up as a 
training school for potential welders and 
fabricators who would ultimately join the 
Company after qualification. Lamprell has 
now significantly extended this initiative  
to the point where this is now the corner 
stone of our Corporate Social Responsibility 
policy.
Part of the expansion is the new “WORK2LIVE” 
programme to provide welfare, education 
and support to disadvantaged young people 
in the North West of India. The concept of 
the programme is to provide sufficient 
support to the disadvantaged such that they 
will ultimately acquire a working skill which 
will enable them to become self sufficient. 
This broad spectrum education and training 
programme will ultimately produce better 
educated and skilled members of society 
who can rise above the poverty line and 
become productive members of society. We 
believe that both the wider community and 
Lamprell will benefit. We have the advantage 
of not only providing the financial resources 
to provide this education and training but 
ultimately to provide direct employment 
within our Company.
Don Bosco Snehalaya is a project focused 
on the street children and youth, living in the 
city of Vadodara. The basic objective of 
Snehalaya is to provide shelter to the young 
living on the railway platforms and in the 
streets, and other vulnerable children  
who are in need of care and protection. 
Snehalaya provides food, clothes,  
medicines, recreational facilities, counselling, 
job placement, contact with their families, 
and training in trades according to their 
capacities and individual circumstances. 
They are given opportunities to interact with 
the public, to express their potential and their 
talents. This helps them to develop their self 
confidence and the awareness that they too 
can contribute something to society.  27
Lamprell plc
Annual Report  
& Accounts 2007 
Ultimately, Snehalaya aims at enabling these 
street children to return to a decent life within 
mainstream society.
People
Attracting, developing and retaining talented 
staff is a major challenge for the oil and gas 
industry currently and at Lamprell we are 
fortunate to have high quality people across 
the whole range of our services. It is therefore 
vital for our continued success that we 
encourage our staff’s personal development 
and career progression, and treat our people 
with respect, maturity and openness. We 
also invest significantly in building their skill 
sets. We are confident that this approach is 
the one most likely to enable us to achieve 
our business objectives by providing quality, 
continuity and growth. Our policy is to ensure 
equal opportunity in career development, 
promotion, training and reward for all of our 
employees. We aim to ensure that all our 
employees understand our business goals 
and our business principles through ongoing 
communications programmes.
With a diverse range of nationalities working 
within the Group, we also respect and 
recognise the value of different cultures.
Health, safety, environment and  
quality summary 
Given the nature of our business, ensuring a 
high level of performance in health, safety, 
environment and quality is absolutely 
essential, and Lamprell has a strong track 
record in these areas. We are very conscious 
though that there is no room for complacency 
in HSEQ and we seek to improve our 
performance year-on-year.
Health and safety
Internal measures for health and safety 
performance are very important to ensure 
focus on this area of our business. We aim  
to instill a culture of “safety first” within the 
organisation, with all staff encouraged to 
report any activities they perceive as not 
conforming to best practice so that any areas 
of oversight can be rectified and brought up 
to the highest possible standard as quickly 
as possible. As a result of this approach, we 
have developed a strong track record in the 
area of safety. A key indicator of this is our LTI 
reporting. Lamprell has established a safety 
record which is exceptional for the oil and 
gas construction industry and we have seen 
ongoing, progressive improvements in these 
safety figures over the past five years.
The facilities individually achieved LTI statis-
tics as follows: 
Sharjah LTI 0
LTI Frequency Rate 0.00 
Jebel Ali LTI 2
LTI Frequency Rate 0.41
Hamriyah LTI 6
LTI Frequency Rate 2.83
However, whilst our own measurement of 
our safety performance is essential, we also 
recognise the importance of external analysis 
of our methods and have achieved relevant 
accreditation by third parties of our 
capabilities. 
In 2007 Lamprell was accredited with the 
management system certificate ISO 14001: 
2004 and the Occupational, Health  
and Safety Assessment Series, OHSAS 
18001: 1999.
Environment
Across all our activities we seek to minimise 
the mark we leave on the sites at which we 
work. A good example is at Hamriyah, where 
as we expand our existing facility, we will 
seek ways to minimise our impact on the 
local environment and increase our energy 
efficiency and recycling capability. 
Throughout our business by delivering the 
best possible product to our customers 
utilising the most up to date technologies, we 
also have a direct impact on the environ-
mental performance of the rigs we refurbish  
by improving their systems and ensuring  
they conform to all relevant international 
legislation. 
Our policy is to strive to achieve continual 
improvement in environmental performance. 
We are committed to preventing pollution 
and reducing the overall impact of our 
operations on the environment. In addition, 
we maintain an internal management 
structure for the management of environ-
mental issues which includes clearly  
defined responsibilities for environmental 
management capable of delivering this policy 
commitment.
At all times Lamprell aims to comply with, 
and where possible exceed, applicable  
legal and other requirements relating to  
the organisation. We are also committed  
to monitoring our environmental perform-
ance and setting objectives and targets  
for improvement and at all times provide 
appropriate training and awareness 
programmes for our staff.
Waste Management Policy
All businesses affect the environment through 
the use of resources and discharge of waste 
products. Our Waste Management Policy  
is therefore consistent with our broader 
Environmental Policy, which includes a stated 
commitment to minimise the environmental 
impacts of our operations and prevent 
pollution. Our aim is to limit our discharge  
of waste material wherever we can and  
the policy lays out how we seek to achieve 
this goal. 
Quality
Lamprell aims to achieve maximum customer 
satisfaction and quality of product. In the 
pursuit of this objective the Company will 
comply with all national and international 
standards and requirements with respect to 
quality assurance. Lamprell will also strive to 
optimise resources and reduce wastage in 
the development of our facilities and training 
of personnel. Whilst aiming to meet these 
objectives the Company ensures cost 
effective jobs and services, and delivery on 
time.
Lamprell meets these objectives by under-
standing customer requirements, working 
together with our customers to meet those 
requirements, understanding our processes 
well and monitoring and measuring our 
activities. Ultimately the Company strives to 
continually improve the Quality Management 
Systems and operations. 28
Lamprell plc
Annual Report  
& Accounts 2007 
1
2
3
5
4
6
7
Board of Directors 29
Lamprell plc
Annual Report  
& Accounts 2007 
1 Peter Gibbs Birch (70)
Chairman 
Peter Birch was appointed to the Board on 
7 July 2006 and was appointed as the 
Chairman of the Company on 5 February 
2008. Peter Birch was Chief Executive at 
Abbey National plc from 1984 to 1998. He 
has held various positions with Gillette 
Industries Ltd. including Managing Director 
of Gillette UK Ltd. and Group General 
Manager of Gillette’s operations in Africa, the 
Middle East and Eastern Europe, and he was 
the Chairman of Land Securities plc from 
1998 to 2007. He serves on the boards of 
several other companies including Trigold 
plc, Travelex plc, Dah Sing Financial Services 
(HK) and Banco Finantia, S.A.
2 Peter Whitbread (63)
Chief Executive Officer 
Peter Whitbread joined Lamprell in 1992. 
Peter is a Chartered Quantity Surveyor with 
over 35 years of experience in the oil and gas 
services sector, with extensive experience in 
managing marine construction companies 
and in the direct project management of a 
wide range of major marine projects, heavy 
marine equipment and vessels. He is 
currently the Chief Executive Officer of the 
Group and was the Chairman of the Group 
until 5 February 2008 when he resigned from 
that position. During his career he has held  
a number of other senior management 
positions and directorships with marine 
construction companies in the Middle East 
region.
3 David Moran (46)
Chief Operating Officer
David Moran joined Lamprell in 1992. David 
is currently responsible for the operational 
activities of Lamprell but will in May 2008 
undertake a new Board position as Director 
of Corporate Communications. Together 
with Peter Whitbread, he has overseen the 
restructuring and expansion of the Group 
and the diversification into related areas of 
business. Prior to his appointment as Chief 
Operating Officer in 2004, David held the 
position of Chief Financial Officer. Prior to 
joining Lamprell, David was responsible for 
the Business Support Unit in the foreign 
exchange department of Midland Montagu. 
He has a BSc in chemical engineering from 
Imperial College, London and is a Chartered 
Accountant, having trained with Coopers 
and Lybrand.
4 Scott Doak (46) 
Chief Financial Officer
Scott Doak joined Lamprell in March 2007. 
Scott is responsible for the finance and 
administration activities of Lamprell. Prior to 
joining Lamprell, he worked for Reuters 
Limited, based in Dubai, in the position of 
Head of Finance for Middle East & Africa, 
where he was a member of the Senior 
Management Group involved in strategic 
planning and market development.  
Previously he has held senior financial roles 
with Telerate Limited, Dubai; Price Waterhouse, 
Dubai and Whinney Murray & Company 
(Saudi affiliate to Ernst & Young). Scott is  
a member of the Institute of Chartered 
Accountants of Scotland and has a Bachelor 
of Accountancy from the University of 
Glasgow.
5 Nigel Robert McCue (56)
Non-Executive Director
Nigel McCue was appointed to the Board on 
7 July 2006 as a Non-Executive Director and 
will in May 2008 take up the role of Chief 
Operating Officer. Nigel has over 30 years  
of experience in the upstream sector of the 
petroleum industry. He is the CEO, and  
a Director, of Jura Energy Corporation, a 
company listed on the Toronto Stock 
Exchange. He is a Director of Nemmoco 
Petroleum Limited, a private exploration and 
production company. Prior to this he was a 
Director and the Chief Financial Officer of 
Lundin Oil Plc. Nigel has also held various 
positions with Chevron Overseas Inc. and 
Gulf Oil Corporation. Nigel is a senior Non-
Executive Director of Dragon Oil Plc, where 
he is Chairman of its audit committee and a 
member of the remuneration and nomination 
committees. He is also a Non-Executive 
Director of Sky Petroleum Inc., where he is 
also Chairman of its audit committee and a 
member of the remuneration and nomination 
committees.
6 Richard Germain Daniel Raynaut (52)
Non-Executive Director
Richard Raynaut was appointed to the Board 
on 7 July 2006. Richard has been involved in 
the oil and gas industry since 1977 when he 
was appointed as an accountant at IHC 
Caland. Between 1977 and 2004, he held a 
variety of positions at IHC Caland (renamed 
SBM Offshore), including Chief Accountant, 
Treasurer and Financial Controller. From 
2000 to 2004, he was appointed the Chief 
Financial Officer of the offshore division and 
was an Executive board member of Single 
Buoy Moorings Inc. From January 2005 
onwards he has been involved in Sri Lanka, 
with the charity Monaco Aide et Presence.
7 Jonathan Silver (55)
Non-Executive Director
Jonathan Silver was appointed to the Board 
on 24 August 2007. Jonathan trained and 
qualified as a solicitor with a leading City of 
London law firm, working first in London and 
later in the United Arab Emirates. In 1981, he 
started his own practice in the United Arab 
Emirates and merged that practice with 
Clyde & Co in 1989. Since then he has 
headed up Clyde & Co’s operations in the 
region. His working experience in the Middle 
East in the areas of international banking and 
finance, mergers & acquisitions, private 
equity, project and construction work has 
involved him in most sectors of commercial 
activity including international trade, energy, 
construction, shipping, commodities and 
insurance. Jonathan, through Clyde & Co, 
has been associated with the Lamprell Group 
for more than 17 years, providing legal advice 
on numerous matters including the IPO. 30
Lamprell plc
Annual Report  
& Accounts 2007 
Directors’ report
The Directors present their annual report on 
the affairs of the Group together with the 
financial statements and Auditors’ Report, 
for the year ended 31 December 2007. 
Information on the Company’s subsidiaries  
is contained in note 1 to the financial 
statements.
Principal activities
The principal activity of the Group is the 
provision of specialised refurbishment and 
construction services to the oil and gas 
industry. 
The principal activity of the Company is to 
act as a Holding Company for the Group.
Results and dividends
The Group net profit for the year amounted 
to US$ 71.5 million (2006: US$ 33.8 million). 
The Directors recommend a final dividend of 
12.25 cents per ordinary share with a Sterling 
equivalent of 6.17 pence per ordinary share 
which, if approved, will be paid on 18 June 
2008 to eligible shareholders on the register 
at 16 May 2008. The Company has paid an 
interim dividend of 5 cents per share in 
November 2007, which makes the total 
dividend per ordinary share for the year  
17.25 cents. 
There was a transfer of US$ 68.9 million to 
retained earnings for the year ended 
31 December 2007 representing the profit 
for the year less dividends paid and 
adjustments for share based payments and 
a transfer to the legal reserve. For details 
refer to the consolidated statement of 
changes in equity on page 37. 
Business review and future 
developments
A full review of the Group’s activities during 
the year, recent events and future 
developments is contained in the Chairman’s 
statement on pages 7, the Chief Executive 
Officer’s statement on pages 8 to 11, the 
Operating review on pages 14 to 19, and the 
Financial review on pages 22 to 25. 
There have been no changes to the Directors’ 
share interests since the year end.
Board of Directors
The Board currently has seven Directors, 
four of whom are Non-Executive Directors. 
The Board considers all the Non-Executive 
Directors, which includes the Chairman, 
other than Jonathan Silver, to be independent 
in character and judgement and their 
appointment to be in the best interests of the 
shareholders.
The position of Peter Whitbread acting in 
the combined role of Chief Executive Officer 
and Chairman ceased on 5 February 2008, 
when Peter Birch was appointed as the 
Chairman of the Company. The Company 
has put in place further restructuring of the 
Board effective 15 May 2008, as David 
Moran, due to personal family reasons, has 
decided not to accept the position of the 
Chief Executive Officer. As per the Admission 
Document issued at the time of the 
Company’s admittance to AIM, David Moran 
was expected to assume the role of the Chief 
Executive Officer, with Peter Whitbread 
continuing as the Chairman of the Company. 
Peter Whitbread will continue as the Chief 
Executive Officer, having relinquished the 
position of the Chairman. Nigel McCue has 
been appointed to the position of the Chief 
Operating Officer, with David Moran 
appointed as the Director of Corporate 
Communications, with both changes being 
effective on 15 May 2008.
Lamprell intends to strengthen the Board 
through the future appointment of further 
independent Non-Executive Directors and 
will appoint suitably qualified Chairmen and 
members to the Board Committees where 
appropriate.
The current membership of the Board is 
stated on page 29. The names of the 
Chairman and members of each of the Audit, 
Remuneration and Nomination Committees 
are detailed below under the respective 
Committee summaries. 
The Board met nine times during the year 
and of these meetings three were conducted 
by telephone via a conference call. These 
meetings were required to deal with specific 
business matters which arose as part of the 
normal business of the Group and which 
needed to be addressed between scheduled 
Board meetings. The Chairman and Non-
Executive Directors have met without the 
Directors’ beneficial interests in ordinary shares at 31 December 2007
    Number of    Number of
  Number of  deferred  Number of  deferred 
  shares  shares  shares  shares 
  as at  as at  as at  as at 
  31 December  31 December  31 December  30 December 
  2007  2007  2006  2006
Executive Directors
Peter Whitbread  2,800,000  –  2,800,000  –
David Moran  1,625,441  828,689
3
  1,625,441  828,689
3
Scott Doak
1
  8,000  –  –  –
Non-Executive Directors
Peter Birch  100,000  –  100,000  –
Nigel McCue  38,461  –  38,461  –
Richard Raynaut  –  –  –  –
Jonathan Silver
2
  –  –  –  –
1 Appointed to the Board of Lamprell plc on 11 June 2007
2 Appointed to the Board of Lamprell plc on 24 August 2007
3 David Moran was granted a deferred share award just prior to admission of Lamprell plc to AIM, see note 7 of the financial statements for details 31
Lamprell plc
Annual Report  
& Accounts 2007 
executives present when necessary. The 
agenda and appropriate supporting Board 
papers are distributed by the Secretary to 
the Board on a timely basis. 
The role of the Board is to provide leadership 
of the Group, set values and standards, and 
to ensure that the Company’s obligations to 
its shareholders and other stakeholders are 
met. The Board has a formal schedule of 
matters reserved to itself for decision, 
including but not limited to, matters of a 
strategic nature, approval of the annual 
budget, approval of major acquisitions, 
investments and disposals, major changes 
to the Group’s capital structure, the 
preparation of financial statements, the 
recommendation or declaration of dividends, 
the entry into contracts which are deemed to 
be material strategically or by reason of size, 
succession planning and appointments to 
the Board, executive remuneration, ensuring 
the maintenance of a sound system of 
internal controls, reviewing its own and its 
Committees’ performance, and reviewing 
the Group’s overall corporate governance 
arrangements.
Management ensures that the Board receives 
timely and appropriate information to enable 
it to perform its duties, including a detailed 
report of operational and financial issues at 
each Board meeting.
Committees of the Board
The Board is assisted by the Audit, the 
Remuneration and the Nomination 
Committees. A summary of the activities of 
each Committee is set out below. The 
Committees are constituted with appropriate 
written terms of reference, which are 
reviewed on an annual basis and are available 
on the Company’s website. The minutes of 
meetings and/or reports from the Chairmen 
of the Committees are made available to the 
Board for its next scheduled meeting 
following the Committee meeting in question, 
or as soon as practicable thereafter.
Audit Committee
The members of the Audit Committee are 
Nigel McCue who acts as Chairman, Peter 
Birch and Richard Raynaut. Others may be 
co-opted onto the Committee by the 
Committee members. The Board considers 
all the members of the Audit Committee who 
are Non-Executive Directors, to be inde-
pendent in character and judgement and 
free from any relationship or circumstance 
which may, or could or would be likely to, or 
which appears to affect their judgement. 
Meetings are held not less than three times a 
year. The Chief Financial Officer is invited to 
attend meetings where appropriate and the 
Company’s auditors are regularly invited to 
attend meetings, including once at the 
planning stage before the audit and once 
after the audit at the reporting stage. Other 
Board members may also be invited to 
attend, although at least once a year the 
Audit Committee must meet the Company’s 
external auditors without management being 
present. The terms of reference of the Audit 
Committee include consideration of matters 
relating to the appointment of the Company’s 
auditors and the independence of the 
Company’s auditors, reviewing the integrity 
of the Company’s annual and interim reports, 
preliminary results announcements and any 
other formal announcement relating to its 
financial performance. The Committee also 
reviews the effectiveness of the Group’s 
system of internal control and compliance 
procedures.
The Audit Committee met four times during 
the year.
Nomination Committee
The members of the Nomination Committee 
are Richard Raynaut, who acts as Chairman, 
Peter Birch and Nigel McCue. The Nomination 
Committee’s terms of reference are to 
periodically review the structure, size and 
composition, including the skills, knowledge 
and experience required of the Board 
compared to its current position and make 
its recommendations to the Board with 
regard to any changes. The Nomination 
Committee also considers the future 
composition of the Board, taking into account 
the challenges and opportunities facing the 
Company, and what skills and expertise are 
needed on the Board. The Nomination 
Committee also makes recommendations to 
the Board about the membership of the Audit 
and Remuneration Committees.
The Nomination Committee met once during 
the year.
Remuneration Committee
The members of the Remuneration 
Committee are Peter Birch, who acts as 
Chairman, Nigel McCue and Richard 
Raynaut. The terms of reference of the 
Remuneration Committee provide for it to 
determine and agree with the Board the 
framework or broad policy for the 
remuneration of the Company’s Chief 
Executive Officer, the Chief Operating Officer 
and the Chief Financial Officer, any such 
other Executive Directors, the Company 
Secretary and other such members of the 
executive management as it is designated to 
consider. The remuneration of the Non-
Executive Directors is a matter for the 
Executive Directors. No Director or manager 
may be involved in any decisions as to his 
own remuneration.
Details of Directors’ remuneration for the 
year ended 31 December 2007 can be found 
in note 9 to the financial statements.
The Remuneration Committee met three 
times during the year. 
Retirement and re-election
In accordance with the Company’s Articles 
of Association, one third or the number 
nearest to one third of the Board shall retire 
from office at every Annual General Meeting 
and any Director in office for more than three 
years at the start of Annual General Meeting 
shall also retire. Accordingly, Peter Whitbread 
and David Moran being the longest serving 
Directors will retire and offer themselves for 
re-election at the forthcoming Annual General 
Meeting. Jonathan Silver who was appointed 
to the Board on 24 August 2007 will also 
retire and offer himself for re-election at the 
forth coming Annual General Meeting. The 
Board supports the re-election of all three 
Directors.
Statement of Directors’ responsibilities
The Directors confirm that suitable account-
ing policies have been used and applied 
consistently. They also confirm that 
reasonable and prudent judgements and 
estimates have been made in preparing the 
financial statements for the year ended 
31 December 2007 and that applicable 
accounting standards have been followed.
The Directors are responsible for keeping 
proper accounting records which disclose 
with reasonable accuracy at any time the 
financial position of the Company and the 
Group and to enable them to ensure that the 
financial statements comply with the Isle of 
Man Companies Acts 1931 to 2004. They 
are also responsible for safeguarding the  32
Lamprell plc
Annual Report  
& Accounts 2007 
assets of the Company and the Group and 
hence for taking reasonable steps for the 
prevention and detection of fraud and other 
irregularities.
The financial statements have been prepared 
on a going concern basis since the Directors 
have reasonable expectation that, firstly, the 
Company’s and the Group’s activities are 
sustainable and, secondly, that adequate 
resources are available to continue in 
operational existence for the foreseeable 
future.
The Directors are responsible for the 
maintenance and integrity of the Company 
website. Your attention is drawn to the fact 
that legislation in the Isle of Man governing 
the preparation and dissemination of financial 
statements may differ from other jurisdictions 
and uncertainty regarding the legal 
requirements is compounded as information 
published on the internet is accessible in 
many countries with different legal 
requirements relating to the preparation and 
dissemination of financial statements.
Auditors
The auditors for the year ended 31 December 
2007 were PricewaterhouseCoopers. They 
have expressed their willingness to continue 
in office as auditors and a resolution to 
reappoint them will be proposed at the 
forthcoming Annual General Meeting.
By order of the Board
Ravindra Dabir
Company Secretary
25 March 2008
Directors’ report
continued 33
Lamprell plc
Annual Report  
& Accounts 2007 
Independent auditor’s report to the members of 
Lamprell plc
Report on the financial statements
We have audited the accompanying 
consolidated and parent company financial 
statements of Lamprell plc which comprise 
the consolidated and parent company 
balance sheets as of 31 December 2007 and 
the consolidated income statement, 
consolidated and parent company 
statements of changes in equity and 
consolidated and parent company cash flow 
statements for the year then ended and a 
summary of significant accounting policies 
and other explanatory notes.
Directors’ responsibility for the financial 
statements
The Directors are responsible for the 
preparation and fair presentation of these 
financial statements in accordance with 
applicable Isle of Man law and International 
Financial Reporting Standards. This 
responsibility includes: designing, 
implementing and maintaining internal control 
relevant to the preparation and fair 
presentation of financial statements that are 
free from material misstatement, whether 
due to fraud or error; selecting and applying 
appropriate accounting policies; and making 
accounting estimates that are reasonable in 
the circumstances. 
Auditor’s responsibility
Our responsibility is to express an opinion on 
these financial statements based on our 
audit. This report, including the opinion, has 
been prepared for and only for the Company’s 
members as a body in accordance with 
Section 15 of the Isle of Man Companies Act 
1982 and for no other purpose.  We do not, 
in giving this opinion, accept or assume 
responsibility for any other purpose or to any 
other person to whom this report is shown or 
into whose hands it may come save where 
expressly agreed by our prior consent in 
writing. We conducted our audit in 
accordance with International Standards on 
Auditing. Those Standards require that we 
comply with ethical requirements and plan 
and perform the audit to obtain reasonable 
assurance whether the financial statements 
are free from material misstatement. 
An audit involves performing procedures to 
obtain audit evidence about the amounts 
and disclosures in the financial statements. 
The procedures selected depend on the 
auditor’s judgement, including the 
assessment of the risks of material 
misstatement of the financial statements, 
whether due to fraud or error. In making 
those risk assessments, the auditor considers 
internal control relevant to the entity’s 
preparation and fair presentation of the 
financial statements in order to design audit 
procedures that are appropriate in the 
circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of 
the entity’s internal control. An audit also 
includes evaluating the appropriateness of 
accounting policies used and the 
reasonableness of accounting estimates 
made by the directors, as well as evaluating 
the overall presentation of the financial 
statements. 
We believe that the audit evidence we have 
obtained is sufficient and appropriate to 
provide a basis for our audit opinion.
Opinion
In our opinion:
the accompanying consolidated financial 
statements give a true and fair view of the 
financial position of the Group as of 31 
December 2007, and of its financial 
performance and its cash flows for the 
year then ended in accordance with 
International Financial Reporting 
Standards as adopted by the European 
Union;
except in respect of the non accrual of 
proposed dividends as disclosed at Note 
31, the parent company financial 
statements give a true and fair view of the 
financial position of the parent company 
as of 31 December 2007, and of its cash 
flows for the year then ended in 
accordance with International Financial 
Reporting Standards as adopted by the 
European Union as applied in accordance 
with the provisions of the Isle of Man 
Companies Acts 1931-2004; 
except in respect of non accrual of the 
proposed dividends as disclosed at Note 
31, the financial statements have been 
properly prepared in accordance with the 
Isle of Man Companies Acts 1931-2004.
PricewaterhouseCoopers
Douglas, Isle of Man
25 March 2008
•
•
• 34
Lamprell plc
Annual Report  
& Accounts 2007 
Consolidated income statement
 Year ended 31 December
      2007  2006 
    Note  USD’000  USD’000
Revenue      467,332  329,587
Cost of sales    5  (359,532)  (256,341)
Gross profit      107,800  73,246
Selling and distribution expenses    6  (1,395)  (988)
General and administrative expenses:
– share based payments    7  (14,942)  (15,584)
– others    8  (25,517)  (24,478)
      (40,459)  (40,062)
Other gains/(losses) – net    11  1,355  767
Operating profit      67,301  32,963
Interest income      4,249  852
Profit for the year attributable to  equity holders of the Company      71,550  33,815
Earnings per share attributable to equity holders of the Company    12    
Basic      35.78c  16.91c
Diluted      35.72c  16.91c
The notes on pages 41 to 65 form an integral part of these financial statements. 35
Lamprell plc
Annual Report  
& Accounts 2007 
Consolidated balance sheet
 As at 31 December
      2007  2006 
    Note  USD’000  USD’000
ASSETS
Non-current assets
Property, plant and equipment    15  47,766  40,595
Intangible asset    16  1,490  –
      49,256  40,595
Current assets
Inventories    18  6,705  4,531
Trade and other receivables    19  149,950  113,508
Derivative financial instruments    14  964  –
Cash and bank balances    21  159,088  19,777
      316,707  137,816
Total assets      365,963  178,411
EQUITY AND LIABILITIES
Capital and reserves
Share capital    22  18,654  18,654
Legal reserve    23  24  22
Merger reserve    25  (22,422)  (22,422)
Retained earnings      162,506  93,616
Total equity      158,762  89,870
Non-current liabilities
Provision for employees’ end of service benefits    26  9,740  8,039
Current liabilities
Trade and other payables    27  197,461  72,404
Due to a related party    20  –  8,098
      197,461  80,502
Total liabilities      207,201  88,541
Total equity and liabilities      365,963  178,411
These financial statements were approved by the Board of Directors on 25 March 2008 and signed on its behalf by:
  
Peter Whitbread David Moran Scott Doak
Chief Executive Officer and Director Chief Operating Officer and Director Chief Financial Officer and Director
The notes on pages 41 to 65 form an integral part of these financial statements. 36
Lamprell plc
Annual Report  
& Accounts 2007 
Company balance sheet
 As at 31 December
      2007  2006 
    Note  USD’000  USD’000
ASSETS
Non-current assets
Investment in subsidiaries    17  743,314  740,052
Current assets
Other receivable      59  53
Due from a related party    20  15,798  –
Cash and bank balances      47  –
      15,904  53
Total assets      759,218  740,105
EQUITY AND LIABILITIES
Capital and reserves
Share capital    22  18,654  18,654
Other reserve    24  708,852  708,852
Retained earnings      31,161  11,997
Total equity      758,667  739,503
Non-current liabilities
Provision for employees’ end of service benefits    26  551  536
Current liabilities
Due to a related party    20  –  66
Total liabilities      551  602
Total equity and liabilities      759,218  740,105
These financial statements were approved by the Board of Directors on 25 March 2008 and signed on its behalf by:
  
Peter Whitbread David Moran Scott Doak
Chief Executive Officer and Director Chief Operating Officer and Director Chief Financial Officer and Director
The notes on pages 41 to 65 form an integral part of these financial statements. 37
Lamprell plc
Annual Report  
& Accounts 2007 
Consolidated statement of changes in equity
    Share Legal Merger Retained
    capital reserve reserve earnings Total 
   Notes USD’000 USD’000 USD’000 USD’000 USD’000
At 1 January 2006    22,23,25 18,654 18 (18,422) 75,472 75,722
Profit for the year    – – – 33,815 33,815
Share based payments – value of services provided   7 – – – 15,584 15,584
Transfer to Legal reserve   23 – 4 – (4) –
Dividends    10 – – – (31,251) (31,251)
Acquisition of Inspec   25 – – (4,000) – (4,000)
At 31 December 2006   22,23,25 18,654 22 (22,422) 93,616 89,870
Profit for the year    – – – 71,550 71,550
Share based payments – value of services provided   7 – – – 14,942 14,942
Transfer to Legal reserve   23 – 2 – (2) –
Dividends    10 – – – (17,600) (17,600)
At 31 December 2007   22,23,25 18,654 24 (22,422) 162,506 158,762
The notes on pages 41 to 65 form an integral part of these financial statements. 38
Lamprell plc
Annual Report  
& Accounts 2007 
Company statement of changes in equity
     Share Other Retained
     capital reserve earnings Total 
    Notes USD’000 USD’000 USD’000 USD’000
At 4 July 2006
Issue of share capital    22,24 18,654 708,852 – 727,506
Loss for the period    28 – – (3,587) (3,587)
Share based payments – value of services provided    7 – – 3,038 3,038
Share based payments – investment in a subsidiary    17 – – 12,546 12,546
At 31 December 2006    22,24 18,654 708,852 11,997 739,503
Profit for the year    28 – – 21,822 21,822
Share based payments – value of services provided    7 – – 11,680 11,680
Share based payments – investment in subsidiaries    17 – – 3,262 3,262
Dividends    10 – – (17,600) (17,600)
At 31 December 2007    22,24 18,654 708,852 31,161 758,667
The notes on pages 41 to 65 form an integral part of these financial statements. 39
Lamprell plc
Annual Report  
& Accounts 2007 
Consolidated cash flow statement
 Year ended 31 December
      2007  2006 
    Notes  USD’000  USD’000
Operating activities
Profit for the year       71,550  33,815
Adjustments for:
Share based payments – value of services provided    7  14,942  15,584
Fair value gain on derivative financial instruments    14  (964)  –
Depreciation     15  7,485  5,082
Amortisation of intangible asset    16  44  –
(Profit)/loss on disposal of property, plant and equipment    11  (4)  6
Profit on disposal of asset held for sale    11  –  (773)
(Release)/provision for slow moving and obsolete inventories    18  (657)  396
Provision for impairment of trade receivables, net    13  17  65
Provision for employees’ end of service benefits     26  2,215  3,221
Interest income      (4,249)  (852)
Operating cash flows before payment of employees’ end of service benefits and  
changes in working capital      90,379  56,544
Payment of employees’ end of service benefits    26  (514)  (1,050)
Changes in working capital:
Inventories before movement in provision       (1,517)  (1,495)
Trade and other receivables before movement in provision for impairment of trade receivables   (36,459)  (53,321)
Trade and other payables excluding unpaid dividend      124,914  15,958
Net cash generated from operating activities      176,803  16,636
Investing activities
Payments for property, plant and equipment    15  (14,978)  (24,037)
Acquisition of a subsidiary net of cash acquired    16  (1,586)  –
Proceeds from sale of property, plant and equipment      378  27
Proceeds from disposal of asset held for sale      –  2,705
Interest income      4,249  852
Payments for acquisition of Inspec     20,25  (3,000)  (1,000)
Movement in margin deposits    21  (6,457)  (1,523)
Net cash used in investing activities      (21,394)  (22,976)
Financing activities
Due (to)/from a related party net of unpaid dividend and purchase consideration payable  
for acquisition of Inspec      (98)  18,501
Dividends paid    10  (22,457)  (26,251)
Net cash used in financing activities      (22,555)  (7,750)
Net increase/(decrease) in cash and cash equivalents      132,854  (14,090)
Cash and cash equivalents, beginning of the year      16,410  30,500
Cash and cash equivalents, end of the year     21  149,264  16,410
The notes on pages 41 to 65 form an integral part of these financial statements. 40
Lamprell plc
Annual Report  
& Accounts 2007 
Company cash flow statement
        Period from
      Year  4 July 
      ended 31  2006 to 31 
      December  December 
      2007  2006 
    Notes  USD’000  USD’000
Operating activities
Profit/(loss) for the year/period       21,822  (3,587)
Adjustments for:
Share based payments – value of services provided    7  11,680  3,038
Provision for employees’ end of service benefits     26  15  352
Dividends received from LEL      (22,100)  –
Operating cash flows before payment of employees’ end of service benefits and  
changes in working capital      11,417  (197)
Changes in working capital:
Other receivable      (6)  (53)
Due from/(to) a related party – net    20,26  (15,864)  250
Net cash used in operating activities      (4,453)  –
Investing activities
Dividends received from LEL      22,100  –
Net cash generated from investing activities      22,100  –
Financing activities
Dividends paid    10  (17,600)  –
Net cash used in financing activities      (17,600)  –
Net increase in cash and cash equivalents      47  –
Cash and cash equivalents, beginning of the year/period      –  –
Cash and cash equivalents, end of the year/period       47  –
The notes on pages 41 to 65 form an integral part of these financial statements. 41
Lamprell plc
Annual Report  
& Accounts 2007 
Notes to the financial statements
for the year ended 31 December 2007
1 Legal status and activities
Lamprell plc was incorporated and registered on 4 July 2006 in the Isle of Man as a public company limited by shares under the Isle of Man 
Companies Acts with the registered number 117101C. The Company acquired 100% of the legal and beneficial ownership in Lamprell Energy 
Limited from Lamprell Holdings Limited, under a share for share exchange agreement dated 25 September 2006 and this transaction was 
accounted for in the consolidated financial statements using the uniting of interests method (Notes 17 and 25). The Company was admitted 
to the Alternative Investment Market of the London Stock Exchange with effect from 16 October 2006. The address of the registered office 
of the Company is 15-19 Athol Street, Douglas, Isle of Man and the Company is managed from the United Arab Emirates. The address of the 
principal place of the business is PO Box 5427, Dubai, UAE. 
The principal activities of the Company and its subsidiaries are: the upgrade and refurbishment of offshore jackup rigs, fabrication, assembly 
and new build construction for the offshore oil and gas sector, including jackup rigs, Floating, Production, Storage and Offloading and other 
offshore and onshore structures, oilfield engineering services, including the upgrade and refurbishment of land rigs. 
The Company has either directly or indirectly the following subsidiaries:
  Percentage
 Percentage of of beneficial  
 legal ownership ownership Country of 
Name of the subsidiary % % Incorporation
Lamprell Energy Limited  100 100 Isle of Man
Lamprell Dubai LLC 49* 100 UAE
Lamprell Sharjah WLL 49* 100 UAE
Maritime Offshore Limited 100 100 Isle of Man
Maritime Offshore Construction Limited 100 100 Isle of Man
International Inspection Services Limited 100 100 Isle of Man
Cleopatra Barges Limited 100 100 British Virgin Islands
Lamprell plc employee benefit trust 100 
†
 Unincorporated
Jebel Ali Investments Limited** (acquired in June 2007) 100 100 British Virgin Islands
Ahbab FZCO** (acquired in June 2007) 90
+
 100 UAE
* The balance of 51% in each case is registered in the name of a UAE National who has assigned all the economic benefits attached to his shareholding to the Group 
entity. LEL has the power to exercise control over the financial and operating policies of the entities incorporated in the UAE through management agreements and 
accordingly, these entities are consolidated as wholly owned subsidiaries in these consolidated financial statements. The UAE National shareholders of these entities 
receive sponsorship fees from the Group (Note 20).
** During the year, LEL acquired 100% of the legal and beneficial ownership of JIL (which has 100% of the beneficial ownership of Ahbab) from LHL for a total purchase 
consideration of USD 1,594,000 (Note 16). 
+
 A FZCO is required to have a minimum of two shareholders and consequently the balance of 10% is held by an employee of LEL in trust for the beneficial interest of 
the Group.
†
 The beneficiaries of the EBT are the employees of the Group. 
These financial statements were approved for issue by the Board of Directors on 25 March 2008.
2 Summary of significant accounting policies 
The principal accounting policies applied in the preparation of these consolidated and parent company financial statements are set out below. 
These policies have been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of the Group and the financial statements of the parent Company have been prepared in accordance 
with International Financial Reporting Standards as adopted by the European Union, International Financial Reporting Interpretations 
Committee interpretations and Isle of Man Companies Acts 1931 to 2004. In accordance with the provisions of the Isle of Man Companies 
Act 1982, the Company has not presented its own income statement. The financial statements have been prepared under the historical cost 
convention, except as disclosed in the accounting polices below. 
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of 
judgement or complexity, or areas where assumptions and estimates are significant to the consolidated and parent company financial 
statements are disclosed in Note 4.  42
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.1 Basis of preparation (continued)
a) Standards, amendments and interpretations effective in 2007
IFRS 7, ‘Financial Instruments: Disclosures’, and the complementary amendment to International Accounting Standard (“IAS”) 1, ‘Presentation 
of Financial Statements – Capital disclosures’, introduces new disclosures relating to financial instruments and does not have any impact on 
the classification and valuation of the Group’s financial instruments.
b) Interpretations to published standards early adopted
The Group and the Company have not early adopted any published standards during 2007.
c) Standards, amendments and interpretations effective in 2007 but not relevant to the Group’s operations
The following standards, amendments and interpretations are mandatory for accounting periods beginning on or after 1 January 2007 but 
are not relevant to the Group’s operations in 2007:
Revised guidance on implementation of IFRS 4, ‘Insurance Contracts’;
IFRIC 7, ‘Applying the Restatement Approach under IAS 29, Financial Reporting in Hyper Inflationary Economies’; 
IFRIC 8, ‘Scope of IFRS 2’;
IFRIC 9, ‘Reassessment of Embedded Derivatives’; and
IFRIC 10, ‘Interim Financial Reporting and Impairment’.
d) Standards, interpretations and amendments to published standards that are not yet effective and have not been early adopted by the 
Group
Certain new standards, amendments and interpretations to existing standards have been published that are mandatory for the Group’s 
accounting periods beginning on or after 1 January 2008 or later periods but which the Group has not early adopted:
IAS 1 (Amendment), ‘Presentation of Financial Statements’, (effective for annual periods beginning on or after 1 January 2009). The main aim 
of the amended version of IAS 1 is to aggregate information in the financial statements on the basis of shared characteristics. Consequently 
changes in equity (net assets) of an entity arising from transactions with owners in their capacity as owners will be disclosed separately from 
other changes in equity. The Group will apply this revised standard from 1 January 2009.
IAS 23 (Amendment), ‘Borrowing Costs’ (effective from 1 January 2009). This amendment requires an entity to capitalise borrowing costs 
directly attributable to the acquisition, construction or production of a qualifying asset (one that takes a substantial period of time to get ready 
for use or sale) as part of the cost of that asset. The option of immediately expensing those borrowing costs will be removed. The Group will 
apply IAS 23 (Amended) from 1 January 2009 but is currently not applicable to the Group as there are no qualifying assets.
IAS 27 (Revised), ‘Consolidated and Separate Financial Statements’, (effective for annual periods beginning on or after 1 July 2009). IAS 27 
(Revised) requires the effect of all transactions with non-controlling interest to be recorded in equity if there is no change in control. They will 
no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the 
entity is re-measured to fair value and a gain or loss is recognised in profit or loss. The Group will apply this revised standard from the effective 
date and is currently not expected to have an impact on the Group financial statements.
IFRS 2 ‘Vesting Conditions and Cancellation – Amendment to IFRS 2 Share-based Payment’, (effective for annual periods beginning on or 
after 1 January 2009). The amendment addresses two matters. It clarifies that vesting conditions are service conditions and performance 
conditions only. Other features of a share-based payment are not vesting conditions. It also specifies that all cancellations, whether by the 
entity or by other parties, should receive the same accounting treatment. The Group will apply this revised standard from the effective date 
and is currently not expected to have an impact on the Group financial statements.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 43
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.1 Basis of preparation (continued)
d) Standards, interpretations and amendments to published standards that are not yet effective and have not been early adopted by the 
Group (continued)
IFRS 3 (Revised), ‘Business Combinations’, (effective for annual periods beginning on or after 1 July 2009). The standard continues to apply 
the acquisition method to business combinations, with some significant changes. These changes include a requirement that all payments to 
purchase a business are to be recorded at fair value at the acquisition date, with some contingent payments subsequently re-measured 
through the income statement. Goodwill may be calculated based on the parent’s share of net assets or it may include goodwill related to 
minority interest. All transactions costs will be expensed. The Group will apply this revised standard for acquisitions, if any, made on or after 
the effective date. 
IFRS 8, Operating Segments (effective from annual periods beginning on or after 1 January 2009). IFRS 8 replaces IAS 14 and aligns segment 
reporting with the requirements of the US Statement of Financial Accounting Standard 131, ‘Disclosures about Segments of an Enterprise 
and Related Information’. The new standard requires a ‘management approach’, under which segment information is presented on the same 
basis as that used for internal reporting purposes. The Group will apply this standard from the effective date and is currently assessing the 
impact on the Group financial statements.
e) Interpretations and amendments to existing standards that are not yet effective and not relevant for the Group’s operations
Certain new interpretations and amendments to existing standards have been published that are mandatory for the Group’s accounting 
periods beginning on or after 1 January 2008 or later periods but are not relevant for the Group’s operations:
IFRIC 12, ‘Service Concession Arrangements’ (effective from 1 January 2008); 
IFRIC 13, ‘Customer Loyalty Programmes’ (effective from 1 July 2008); 
IFRIC 14, ‘IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’ (effective from 1 January 
2008); and
IAS 32 (Amendment), ‘Financial Instruments: Presentation’, (effective for annual periods beginning on or after 1 January 2009).
2.2 Revenue recognition
Contract revenue is recognised under the percentage-of-completion method. When the outcome of the contract can be reliably estimated, 
revenue is recognised by reference to the proportion that accumulated costs up to the year end bear to the estimated total costs of the 
contract. When the contract is at an early stage and its outcome cannot be reliably estimated, revenue is recognised to the extent of costs 
incurred up to the year end which are considered recoverable.
Revenue related to variation orders is recognised when it is probable that the customer will approve the variation and the amount of revenue 
arising from the variation can be reliably measured.
A claim is recognised as contract revenue when settled or when negotiations have reached an advanced stage such that it is probable that 
the customer will accept the claim and the amount can be measured reliably.
Losses on contracts are assessed on an individual contract basis and provision is made for the full amount of the anticipated losses, including 
any losses relating to future work on a contract, in the period in which the loss is first foreseen.
The aggregate of the costs incurred and the profit/loss recognised on each contract is compared against progress billings at the year end. 
Where the sum of the costs incurred and recognised profit or recognised loss exceeds the progress billings, the balance is shown under trade 
and other receivables as amounts recoverable on contracts. Where the progress billings exceed the sum of costs incurred and recognised 
profit or recognised loss, the balance is shown under trade and other payables as amounts due to customers on contracts. 
In determining contract costs incurred up to the year end, any amounts incurred relating to future activity on a contract are excluded and are 
presented as contract work-in-progress.  44
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.3 Consolidation
Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies generally accompanying a 
shareholding of more than one half of the voting rights.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group, except for acquisitions involving 
entities under common control, which are accounted for using the uniting of interests method. The cost of an acquisition under the purchase 
method is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, 
plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business 
combination under the purchase method are measured initially at their fair values at the acquisition date, irrespective of the extent of any 
minority interest. 
The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net assets acquired is recorded as goodwill. If 
the cost of acquisition is less than the Group’s share of the fair value of the net assets of the subsidiary acquired, the difference is recognised 
directly in the income statement.
Business combinations involving entities under common control do not fall within the scope of IFRS 3. Consequently, the Directors have a 
responsibility to determine a suitable accounting policy. The Directors have decided to follow the uniting of interests method for accounting 
for business combinations involving entities under common control.
Under the uniting of interests method there is no requirement to fair value the assets and liabilities of the acquired entities and hence no 
goodwill is created as balances remain at book value. Consolidated financial statements include the profit or loss and cash flows for the entire 
year (pre and post merger) as if the subsidiary had always been part of the Group. The aim is to show the combination as if it had always been 
combined.
Inter-company transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are 
also eliminated but considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed or 
adjustments have been made to the financial statements of subsidiaries, where necessary, to ensure consistency with the policies adopted 
by the Group.
2.4 Investment in subsidiaries
In the Company’s separate financial statements, the investment in subsidiaries is stated at cost less provision for impairment. Cost is the 
amount of cash paid or the fair value of the consideration given to acquire the investment. Income from such investments is recognised only 
to the extent that the Company receives distributions from accumulated profits of the investee company arising after the date of acquisition. 
Distributions received in excess of such profit i.e. from pre-acquisition reserves are regarded as a recovery of investment and are recognised 
as a reduction of the cost of the investment.
2.5 Foreign currency translation 
(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment 
in which the entity operates (‘the functional currency’). The Group’s activities are carried out from the UAE and its currency the UAE Dirham, 
which is pegged to the US Dollar, is the functional currency of all the entities in the Group. The consolidated and parent company financial 
statements are presented in US Dollars.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. 
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of 
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement.
(c) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a 
functional currency different from the presentation currency are translated into the presentation currency as follows:
assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet;
income and expenses for each income statement are translated at average exchange rates; and
all resulting exchange differences are recognised as a separate component of equity.
•
•
•
Notes to the financial statements
for the year ended 31 December 2007 (continued) 45
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.6 Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation. The cost of property, plant and equipment is the purchase 
cost, together with any incidental expenses of acquisition. Depreciation is calculated on a straight line basis over the expected useful 
economic lives of the assets as follows:
        Years
Buildings        10–20
Operating equipment        5–10
Fixtures and office equipment        3–5
Motor vehicles        5
The assets’ residual values, if significant, and useful lives are reviewed and adjusted if appropriate, at each balance sheet date. Subsequent 
costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future 
economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All repairs and maintenance 
are charged to the income statement during the financial period in which they are incurred.
Capital work-in-progress is stated at cost. When commissioned, capital work-in-progress is transferred to property, plant and equipment and 
depreciated in accordance with Group policies.
Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable 
amount. 
Gains and losses on disposal of property, plant and equipment are determined by reference to their carrying amounts and are taken into 
account in determining operating profit. 
2.7 Intangible assets
Intangible assets representing operating leasehold rights are carried at cost (being the fair value on the date of acquisition where intangibles 
are acquired in a business combination) less accumulated amortisation and impairment, if any. Amortisation is calculated using the straight-
line method to allocate the cost of the leasehold right over its estimated useful life (17 years).
2.8 Inventories
Inventories comprise consumables which are stated at the lower of cost and estimated net realisable value. Cost is determined on the 
weighted average basis and comprises direct material costs. Net realisable value is the estimate of the replacement cost of consumables.
2.9 Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less 
provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the Group will 
not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability 
that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the 
trade receivable is impaired. The amount of the provision is the difference between the asset’s carrying amount and the present value of 
estimated future cash flows, discounted at the effective interest rate.
The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income 
statement within ‘general and administrative expenses - others’. When a trade receivable is uncollectible, it is written off against the allowance 
account for trade receivables. Subsequent recoveries of amounts previously written off are credited against ‘general and administrative 
expenses – others’ in the income statement.
2.10 Trade payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
2.11 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an 
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the 
obligation can be made. 46
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.12 Employee benefits
(a) Provision for staff benefits 
A provision is made for the estimated liability for employees’ entitlements to annual leave and leave passage as a result of services rendered 
by the employees up to the balance sheet date. Provision is also made, using actuarial techniques, for the end of service benefits due to 
employees in accordance with the UAE Labour Law for their periods of service up to the balance sheet date. The provision relating to annual 
leave and leave passage is disclosed as a current liability and included in trade and other payables, while that relating to end of service 
benefits is disclosed as a non-current liability.
 
(b) Share based payments
The Group operates a number of equity-settled, share-based compensation plans. The fair value of the employee services received in 
exchange for the grant of the shares/options is recognised as an expense. The total amount to be expensed over the vesting period is 
determined by reference to the fair value of the shares/options granted, excluding the impact of any non-market vesting conditions (for 
example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of shares/
options that are expected to vest. At each balance sheet date, the entity revises its estimates of the number of shares/options that are 
expected to vest. It recognises the impact of the revision to original estimates, if any, in the income statement, with a corresponding adjustment 
to Retained earnings.
The Company has granted rights to its equity instruments to the employees of subsidiary companies conditional upon the completion of 
continuing service with the Group for a specified period. The total amount of the grant over the vesting period is determined by reference to 
the fair value of the equity instruments granted and is recognised in each period as an increase in the investment in the subsidiary with a 
corresponding credit to its Retained earnings. In the separate financial statements of the subsidiary, the fair value of the employee services 
received in exchange for the grant of the equity instruments of the Company i.e. parent is recognised as an expense with a corresponding 
credit to its Retained earnings.
2.13 Leases
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. 
Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line 
basis over the period of the lease.
2.14 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, current accounts with banks less margin deposits, and other short-term highly liquid 
investments with original maturity of less than three months.
2.15 Non-current assets held for sale
Non-current assets are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell if their 
carrying amount is expected to be recovered principally through a sale transaction rather than through a continuing use.
2.16 Dividend distribution
Dividend distributions are recognised as a liability in the Group’s consolidated and parent company financial statements in the period in which 
the dividends are approved by the shareholders.
2.17 Segment reporting
A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that 
are different from those of other business segments. A geographical segment is engaged in providing products or services within a particular 
economic environment that are subject to risks and returns that are different from those of segments operating in other economic 
environments.
Given the nature of the business and operations the Group has assessed that it has one business and one geographical segment.
2.18 Taxation
The Company, which is incorporated in the Isle of Man, was not subject to income tax in the Isle of Man up to 5 April 2007 as it was registered 
as a tax exempt company. With effect from 6 April 2007 the tax exempt company status ceased to exist in Isle of Man legislation and the 
Company is taxable at 0% in the Isle of Man. The Group is not currently subject to income tax in respect of its operations carried out in the 
UAE. 
Notes to the financial statements
for the year ended 31 December 2007 (continued) 47
Lamprell plc
Annual Report  
& Accounts 2007 
2 Summary of significant accounting policies (continued)
2.19 Financial assets 
The Group classifies its financial assets in the following categories: at fair value through profit or loss and loans and receivables. Currently the 
Group does not have any held to maturity and available-for-sale financial assets. The classification depends on the purpose for which the 
financial assets were acquired. Management determines the classification of its financial assets at initial recognition.
(a) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired 
principally for the purpose of selling in the short-term. Derivatives are also categorised as held for trading unless they are designated as 
hedges. The Group has not classified any derivatives as hedges in a hedging relationship. Assets in this category are classified as current 
assets.
Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the income 
statement. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred 
and the Group has transferred substantially all risks and rewards of ownership.
Gains or losses arising from changes in the fair value of the ‘financial assets at fair value through profit or loss’ category are presented in the 
income statement within ‘other gains/(losses) – net’ in the period in which they arise.
(b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They 
are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current 
assets. The Group’s loans and receivables comprise trade receivables (Note 2.9) and cash and cash equivalents (Note 2.14) in the Group 
balance sheet and amounts due from a related party in the Company balance sheet.
The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is 
impaired.
2.20 Derivative financial instruments
Derivatives embedded in other financial instruments or other host contracts (e.g. sales contracts) are treated as separate derivatives when 
their risks and characteristics are not closely related to those of host contracts. Such derivative financial instruments are stated at fair value 
with movements in fair value recorded in the income statement. 
The fair value of the resulting (embedded) forward exchange contracts is calculated by reference to current forward exchange rates for 
contracts with similar maturity profiles.  
2.21 Impairment of non-financial assets
Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying 
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount. The recoverable amount is the higher of an asset’s fair value less cost to sell and its value in use. For the purposes of assessing 
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-
financial assets that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. Any material 
impairment loss is recognised in the income statement and separately disclosed.
3 Financial risk management
3.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange, cash flow and fair value interest rate risk), 
credit risk and liquidity risk. These risks are evaluated by the management on an ongoing basis to assess and manage critical exposures. The 
Group’s liquidity and market risks are managed as part of the Group’s treasury activities. Treasury operations are conducted within a 
framework of established policies and procedures. 
(a) Market risk – foreign exchange risk
The Group does not have any significant foreign currency exposure, as the majority of the revenue and purchases are denominated in US 
Dollars or the UAE Dirham which is pegged to the US Dollar.  48
Lamprell plc
Annual Report  
& Accounts 2007 
3 Financial risk management (continued)
3.1 Financial risk factors (continued)
(b) Market risk – cash flow and fair value interest rate risk
The Group holds its surplus funds in short term bank deposits. The Group has no other interest bearing assets or borrowings. During the year 
ended 31 December 2007, if interest rates on deposits had been 0.5% higher/lower, the interest income would have been higher/lower by 
USD 447,000 (2006: USD 91,000).
(c) Credit risk
The Group’s exposure to credit risk is detailed in Notes 14, 19 and 21. The Group has a policy for dealing with customers with an appropriate 
credit history. The Group has policies that limit the amount of credit exposure to any financial institution.
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, deposits with banks, derivative financial 
instruments and trade receivables. The Group has a formal procedure of monitoring and follow up of customers for outstanding receivables. 
For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted. The Group assesses internally 
the credit quality of each customer, taking into account its financial position, past experience and other factors.
 
The Group had a significant concentration of credit risk at the balance sheet date with nine (2006: nine) of its largest customer balances 
accounting for 75% (2006: 82%) of trade receivables at 31 December 2007. Management believes that this concentration of credit risk is 
mitigated as the Group has long-standing relationships with these customers, and the majority of the outstanding balances at the balance 
sheet date have been subsequently received.
The table below shows the rating and balance of the thirteen (2006: twelve) major counterparties at the balance sheet date.
   2007    2006
Counterparty External rating
+
   USD’000 External rating
+
   USD’000
Bank A  AA  31,618  AA  5,920
Bank B   AA  16,813  AA  10,457
Bank C   AA-  4,009  AA-  3,266
Bank D  A   106,337   –  –
    158,777    19,643
+
 Based on Standard & Poor’s long term rating.
   2007    2006
 Internal rating
++
  USD’000 Internal rating
++
  USD’000
Customer 1   Group B  11,269  Group B  8,846
Customer 2   Group B  8,982  Group A  7,874
Customer 3   Group B  5,311  Group C  5,487
Customer 4  Group A  4,813  Group A  5,300
Customer 5  Group A  3,176  Group A  3,989
Customer 6  Group B  2,806  Group B  3,642
Customer 7  Group A  2,617  Group A  2,858
Customer 8  Group A  2,589  Group A  2,392
Customer 9  Group A   2,589  Group B  2,378
    44,152    42,766
++
 Refer to Note 14 for the description of internal rating.
The nine major customers in 2006 are not necessarily the same customers in 2007.
 
Management does not expect any losses from non-performance by these counterparties.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 49
Lamprell plc
Annual Report  
& Accounts 2007 
3 Financial risk management (continued)
3.1 Financial risk factors (continued)
(d) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed 
credit facilities. Due to the nature of the underlying business and through progress billings, the Group maintains adequate bank balances to 
fund its operations.
Management monitors the forecast of the Group’s liquidity position on the basis of expected cash flow. 
The Group is currently financed from the Shareholders’ equity and Retained earnings with no debt. All contractual commitments for financial 
liabilities are due within twelve months from the balance sheet date.
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns 
for shareholders and benefits for other stakeholders and to maintain an optimal capital structure. Total capital for the Group and the Company 
is calculated as ‘total equity’ as shown in the Consolidated balance sheet and in the Company balance sheet respectively.
Presently, the Group has a dividend policy which takes into account the Group’s capital requirements, cash flows and earnings. 
During each of the years ended 31 December 2007 and 2006 the Group did not have any external borrowings.
4 Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future 
events that are believed to be reasonable under the circumstances.
4.1 Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the 
related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of 
assets and liabilities within the next financial year are as follows:
Revenue recognition
The Group uses the percentage-of-completion method in accounting for its contract revenue. Use of the percentage-of-completion method 
requires the Group to estimate the stage of completion of the contract to date as a proportion of the total contract work to be performed in 
accordance with the accounting policy set out in Note 2.2. As a result, the Group is required to estimate the total cost to completion of all 
outstanding projects at each period end. The application of a 10% sensitivity to management estimates of the total costs to completion of all 
outstanding projects at the year end would result in the revenue and profit increasing by USD 6.5 million (2006: USD 3.5 million) if the total 
costs to completion are decreased by 10% and the revenue and profit decreasing by USD 5.7 million (2006: 4.1 million) if the total costs to 
completion are increased by 10%.
5 Cost of sales
      2007  2006
      USD’000  USD’000
Materials and related costs      146,019  84,647
Sub-contract      82,860  70,713
Staff costs (Note 9)      67,095  45,378
Sub-contract labour      27,586  27,175
Equipment hire      8,392  8,867
Repairs and maintenance      4,968  3,222
Depreciation      4,978  3,089
Yard rent      2,511  2,153
Others      15,123  11,097
      359,532  256,341 50
Lamprell plc
Annual Report  
& Accounts 2007 
6 Selling and distribution expenses
      2007  2006
      USD’000  USD’000
Advertisement and marketing      436  441
Entertainment       187  123
Travel      324  275
Other expenses      448  149
      1,395  988
7 General and administrative expenses – share based payments
      2007  2006
      USD’000  USD’000
Fair value of shares vested in October 2006      –  11,882
Proportionate amount of share based charge for the year:
– relating to shares gifted/granted in 2006      13,276  3,414
– relating to deferred share award in 2006      1,382  288
– relating to Free Share Plan      228  –
– relating to Executive Share Option Plan      56  –
      14,942  15,584
On 10 October 2006, LHL agreed with selected Directors and management personnel of the Group to gift a total of 9,311,996 shares of 
Lamprell plc. The fair value, computed based on the Company’s share price on 11 October 2006 (£ 1.95), amounted to USD 33.9 million. The 
vesting of these shares is conditional upon the continued employment of the Director/management personnel concerned and these shares 
also accrue dividends which are also transferred to employees on vesting. In the event of the vesting condition not being satisfied by the 
employees the respective shares and the accumulated dividend revert to LHL. As part of the arrangements, 3,266,414 shares with a fair value 
of USD 11.9 million vested immediately in 2006 and the balance (held under lock-in arrangements) vests over a period of two years, of which 
2,212,721 shares vested during 2007. A charge of USD 13.3 million (2006: USD 15.3 million) has been recognised in the consolidated income 
statement with a corresponding credit to the consolidated Retained earnings. This includes an amount of charge recognised in the income 
statement of the Company with a corresponding credit to Retained earnings of USD 10.3 million (2006: USD 2.7 million).
On 16 October 2006, the Company also granted a Director a deferred share award that gives him an entitlement to receive a certain number 
of shares equivalent to USD 3 million at no cost. The award, subject to satisfaction of a performance target and continued employment, will 
normally vest in three equal tranches on the announcement of the Company’s final results for each of the financial years ending 31 December 
2007, 2008 and 2009. The performance target relates to the growth in the Company’s earnings per share. The number of shares awarded 
under this scheme, computed based on the Company’s share price on 11 October 2006 (£1.95), is 828,689. Accordingly, the Group and 
Company have each recognised a charge of USD 1.4 million (2006: USD 0.3 million) in the income statement with the corresponding credit 
to Retained earnings.
On 16 May 2007, the Company granted 99,365 shares to selected employees under the Free Share Plan that gives them entitlement to 
receive these shares at no cost. These free shares are conditional on the employee completing eighteen months’ service (the vesting period). 
The award does not have any performance conditions and does not entitle participants to dividend equivalents during the vesting period. The 
fair value of the share awards made under this plan (£ 3.16 per share) is based on the share price at the date of the grant less the value of the 
dividends foregone during the vesting period. The expected withdrawal rate for the free shares awarded under this plan is 5%. 
Notes to the financial statements
for the year ended 31 December 2007 (continued) 51
Lamprell plc
Annual Report  
& Accounts 2007 
7 General and administrative expenses – share based payments (continued)
Accordingly a charge of USD 228,000 has been recognised in the consolidated income statement with a corresponding credit to the 
consolidated Retained earnings.
The Group has no legal or constructive obligation to settle the deferred/free share award in cash.
An analysis of the number of shares gifted/granted, vested during the year and expected to vest in future periods is provided below:
       Number of shares
Shares gifted/granted in October 2006        9,311,996
Shares under deferred share award        828,689
Shares vested during 2006        (3,266,414)
Shares expected to vest in future periods at 31 December 2006        6,874,271
Shares gifted under Free Share Plan        99,365
Shares vested during 2007        (2,212,721)
Shares forfeited during 2007        (6,873)
Shares expected to vest in future periods at 31 December 2007        4,754,042
The above includes 1,613,269 shares (2006: 1,620,142 shares) gifted by LHL on 10 October 2006 and held by the EBT in trust for certain 
management personnel. 
The shares are expected to vest as follows:
       Number of shares
Year      2007  2006
2007      –   2,212,721
2008      4,201,583  4,109,091
2009      276,230  276,230
2010      276,229  276,229
      4,754,042  6,874,271
On 16 May 2007, the Company also granted share options to certain employees under the Executive Share Option Plan. This option plan does 
not entitle the employees to dividends. The exercise price of the granted options is £ 3.22. These options are conditional on the employee 
completing three years’ service (the vesting period) and hence the options are exercisable starting three years from the grant date, and have 
a contracted option term of ten years. The Group has no legal or constructive obligation to repurchase or settle the option in cash.
The movement in the number of share options outstanding and their related weighted average exercise price are as follows:
       2007
      Average 
      exercise 
      price in £ 
      per share  Options
At 1 January      –  –
Granted during the year      3.22  105,369
At 31 December      3.22  105,369
Share options outstanding at the end of the year have an expiry date of 16 May 2017, and none of the options outstanding were exercisable 
at 31 December 2007.
The weighted average fair value of options granted during the year determined using a binomial valuation model was £ 1.61 per option. The 
significant inputs into the model were a share price of £ 3.20 at the grant date, exercise price shown above, volatility of 40%, dividend yield 
of 0.81%, an expected option term of ten years, an annual risk-free interest rate of 4.95% and withdrawal rate of 5% per annum. As the 
company was only listed in October 2006, the share price volatility is based on FTSE AIM peers in the same sector, Oil Equipment and 
Services. A charge of USD 56,000 has been recognised in the consolidated income statement with a corresponding credit to the consolidated 
Retained earnings. This includes an amount of charge recognised in the income statement of the Company with a corresponding credit to 
Retained earnings of USD 10,585. 52
Lamprell plc
Annual Report  
& Accounts 2007 
7 General and administrative expenses – share based payments (continued)
In January 2008, 99,337 free shares amounting to USD 814,059 were granted to a Director and certain key management personnel. These 
free shares have a vesting period of twenty four months.
8 General and administrative expenses – others
      2007  2006
      USD’000  USD’000
Staff costs (Note 9)      15,450  10,626
Utilities and communication      1,548  1,370
Depreciation      2,507  1,993
Other expenses      6,012  10,489
      25,517  24,478
Other expenses for the year 2006 include USD 7.5 million incurred mainly towards various legal and professional charges in connection with 
the admission of Lamprell plc to AIM. 
9 Staff costs 
      2007  2006
      USD’000  USD’000
Wages and salaries       53,283  36,239
Employees’ end of service benefits (Note 26)      2,215  3,221
Share based payments – value of services provided (Note 7)      14,942  15,584
Other benefits      27,047  16,544
      97,487  71,588
Staff costs are included in:
Cost of sales (Note 5)      67,095  45,378
General and administrative expenses – share based payments (Note 7)     14,942  15,584
General and administrative expenses – others (Note 8)      15,450  10,626
      97,487  71,588
Number of employees at 31 December       4,331  3,331
Notes to the financial statements
for the year ended 31 December 2007 (continued) 53
Lamprell plc
Annual Report  
& Accounts 2007 
9 Staff costs (continued)
Directors’ remuneration comprises:
     Share
     based 
     payments – Post 
   Allowances  value of employ- 
   and  services ment 
 Salary Fees benefits Bonus provided benefits Total Total 
 2007 2007 2007 2007 2007 2007 2007 2006 
 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Executive Directors
Steven Lamprell* – – – – – – – –
Gillian Lamprell* – – – – – – – –
Peter Whitbread 300 – 108 720 6,508 24 7,660 7,097
David Moran** 300 – 212 720 5,160 (19) 6,373 7,415
Scott Doak
+
 155 – 98 673 12 10 948 –
Non-Executive Directors
Richard Raynaut
++
 – 60 – – – – 60 27
Nigel McCue
++
 – 60 – – – – 60 27
Peter Birch
++
 – 153 – – – – 153 70
Jonathan Silver
+++
 – 23 – – – – 23 –
 755 296 418 2,113 11,680 15 15,277 14,636
The emoluments of the Chief Executive Officer (2006: Chief Operating Officer), which were also the emoluments of the highest paid Director, were USD 7.7 million  
(2006: USD 7.4 million) and these principally comprised salary, benefits and share based payments.
* Were Directors of LEL in 2006 and resigned with effect from 10 October 2006.
** Appointed as a Director on 4 July 2006 and is also the Chief Operating Officer. The 2006 remuneration represents the amount for the full year.
+
 Joined as Chief Financial Officer on 1 March 2007 and appointed as a Director on 11 June 2007. The remuneration represents amount from the date of joining as Chief 
Financial Officer.
++
 Appointed as Directors on 7 July 2006.
+++
 Appointed as a Director on 24 August 2007.
10 Dividends 
During the year (on 2 April 2007 and 25 September 2007), the Board of Directors of the Company approved dividends of USD 17.6 million 
comprising USD 7.6 million (US cents 3.8 per share) relating to 2006 and an interim dividend of USD 10 million (US cents 5 per share) for 2007. 
At 31 December 2007, the unpaid dividend amounted to USD 143,000 (Note 27).
During 2006 (on 30 June 2006 and 20 September 2006), the Board of Directors of LEL approved a total dividend amounting to USD 30.8 
million of which USD 5 million was unpaid at 31 December 2006 (Note 20). In addition, on 30 June 2006, the Board of Directors of Inspec 
approved a dividend of USD 0.4 million. These dividends were payable to the former shareholders of LEL and Inspec. The unpaid dividend of 
USD 5 million was paid in 2007 (Note 20).
11 Other gains/(losses) – net
      2007  2006
      USD’000  USD’000
Insurance reimbursement for property, plant and equipment and inventory damaged     3,275  –
Write off of property, plant and equipment damaged       (315)  –
Write off of inventory damaged      (2,960)  –
Fair value gain on derivative financial instruments      1,351  –
Profit/(loss) on disposal of property, plant and equipment      4  (6)
Profit on disposal of asset held for sale      –  773
      1,355  767 54
Lamprell plc
Annual Report  
& Accounts 2007 
12 Earnings per share
      2007  2006
      USD’000  USD’000
The calculations of earnings per share are based on the following profit and numbers of shares:
Profit for the year      71,550  33,815
Weighted average number of shares for basic earnings per share    200,000,000 200,000,000
Adjustments for:
–Assumed vesting of deferred share awards+      249,275  –
– Assumed exercise of free share awards      52,766  –
Weighted average number of shares for diluted earnings per share     200,302,041 200,000,000
Earnings per share:
Basic       35.78c  16.91c
Diluted      35.72c  16.91c
+
 In the prior year there was no dilution impact of the assumed conversion of deferred share awards as the performance condition relating to this award had not been 
met at 31 December 2006
13 Operating profit
Operating profit is stated after charging:
      2007  2006
      USD’000  USD’000
Depreciation      7,485  5,082
Auditors’ remuneration – audit services      337  252
Auditors’ remuneration – non-audit services re IPO      –  2,270
Operating lease rentals – land and buildings      8,758  4,773
Provision for impairment of trade receivables      88  74
Release of provision for impairment of trade receivables (Note 19)      (71)  (9)
      17  65
14 Financial instruments by category
The accounting policies for financial instruments have been applied to the line items below:
Group
      Assets at
      fair value 
      through 
    Loans and  profit 
    receivables  and loss  Total 
    USD’000  USD’000  USD’000
31 December 2007
Derivative financial instruments    –  964  964
Trade receivables    58,565  –  58,565
Cash and bank balances    159,088  –  159,088
Total    217,653  964  218,617
31 December 2006
Trade receivables    52,335  –  52,335
Cash and bank balances    19,777  –  19,777
Total    72,112  –  72,112
Derivative financial instruments represents embedded derivatives arising in respect of two sale contracts (Note 2.20).
Notes to the financial statements
for the year ended 31 December 2007 (continued) 55
Lamprell plc
Annual Report  
& Accounts 2007 
14 Financial instruments by category (continued)
Group
 Liabilities at amortised cost
      2007  2006 
      USD’000  USD’000
Trade payables      24,329  26,388
Other payables and accruals      52,902  34,125
Due to a related party      –  8,098
Total      77,231  68,611
Company
 Loans and receivables
      2007  2006 
      USD’000  USD’000
Cash and bank balances      47  –
Due from a related party      15,798  –
Total      15,845  –
Company
 Liabilities at amortised cost
      2007  2006 
      USD’000  USD’000
Due to a related party      –  66
Total      –  66
Credit quality of financial assets
Group
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to historical information about 
counterparty default rates:
      2007  2006
      USD’000  USD’000
Trade receivables
Group A      9,592  23,318
Group B      14,755  10,384
Group C      1,806  1,032
      26,153  34,734
Derivative financial assets
Group A      964  –
      964  –
Group A – Last six months average debtor days is less than 45.
Group B – Last six months average debtor days is between 46 and 90.
Group C – Last six months average debtor days is above 90.
None of the financial assets that are fully performing have been renegotiated in the last year.  56
Lamprell plc
Annual Report  
& Accounts 2007 
14 Financial instruments by category (continued)
Cash at bank and short-term bank deposits
      2007  2006
      USD’000  USD’000
Standard & Poor ratings
AA      48,576  16,377
AA-      4,009  3,266
A      106,344  –
      158,929  19,643
Cash in hand      159  134
Cash at bank and in hand      159,088  19,777
15 Property, plant and equipment 
     Fixtures,  Capital 
    Operating and office Motor work-in-  
   Buildings equipment equipment vehicles progress Total 
   USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Cost
At 1 January 2006   13,220 16,965 4,263 1,247 345 36,040
Additions   2,825 18,914 1,325 739 234 24,037
Disposals   – (8) (2) (54) – (64)
At 31 December 2006   16,045 35,871 5,586 1,932 579 60,013
Additions   537 8,866 1,702 834 3,039 14,978
Acquisition of a subsidiary (Note 16)   52 – – – – 52
Transfers   27 521 11 – (559) –
Disposals   (506) (230) (116) (68) – (920)
At 31 December 2007   16,155 45,028 7,183 2,698 3,059 74,123
Depreciation
At 1 January 2006   3,275 7,373 2,981 738 – 14,367
Charge for the year   966 3,089 739 288 – 5,082
Disposals   – (8) (1) (22) – (31)
At 31 December 2006   4,241 10,454 3,719 1,004 – 19,418
Charge for the year   1,179 5,035 957 314 – 7,485
Disposals   (274) (120) (105) (47) – (546)
At 31 December 2007   5,146 15,369 4,571 1,271 – 26,357
Net book amount
31 December 2007   11,009 29,659 2,612 1,427 3,059 47,766
31 December 2006   11,804 25,417 1,867 928 579 40,595
Buildings have been constructed on land leased, on a renewable basis, from the relevant Government authorities in the UAE. The remaining 
life of the leases range between two to nine years. The Group has renewed the land lease, upon its expiry, in the past and its present intention 
is to continue to use the land and renew the leases for the foreseeable future.
Depreciation charge of USD 4,978,000 (2006: USD 3,089,000) has been charged to cost of sales and USD 2,507,000 (2006: USD 1,993,000) 
to general and administrative expenses.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 57
Lamprell plc
Annual Report  
& Accounts 2007 
16 Business combinations
On 25 June 2007, the Group acquired 100% of the share capital of JIL for a purchase consideration of USD 1,594,000 from LHL (a related 
party). JIL is a holding company and beneficially owns 100% of Ahbab which in turn has a favourable lease of land in Jebel Ali Free Zone up 
to November 2014. This lease is renewable for a further period of 10 years. 
         USD’000
Purchase consideration        1,594
Fair value of net identifiable assets acquired (see below)         1,594
Goodwill/negative goodwill        –
The details of net assets acquired are as follows:
      Acquiree’s
      carrying  Fair 
      value  value 
      USD’000  USD’000
Value of identifiable assets and liabilities acquired: 
Property, plant and equipment      52  52
Intangible asset *      –  1,534
Deposits and prepaid expenses      21  21
Cash and bank balance (margin deposit)      8  8
Trade and other payables      (21)  (21)
Net identifiable assets acquired      60  1,594
* Intangible asset represents a favourable operating leasehold right acquired, the value of which has been determined by calculating the present value of the expected 
future economic benefits to arise from the favourable lease term (17 years). The movement in intangible asset is as follows:
         USD’000
Acquired during the year        1,534
Amortisation charge during the year        (44)
At 31 December 2007        1,490
If the acquisition had occurred on 1 January 2007, consolidated revenue and consolidated profit for the year ended 31 December 2007 would 
have been USD 467.3 million and USD 71.5 million respectively. The post acquisition revenue of Ahbab arises only from sub-leasing its land 
to a Group company.
         USD’000
Outflow of cash to acquire business, net of cash acquired:
– cash consideration        1,594
– cash and bank balance in subsidiary acquired        (8)
Cash outflow on acquisition        1,586 58
Lamprell plc
Annual Report  
& Accounts 2007 
17 Investment in subsidiaries
      2007  2006
      USD’000  USD’000
Balance at 1 January      740,052  –
Acquired during the year       –  727,506
Effect of share based payment to subsidiary’s employees under IFRIC 11
      3,262  12,546
      743,314  740,052
On 25 September 2006, the Company entered into a share for share exchange agreement with LEL and LHL under which it acquired 100% 
of the 49,003 issued shares of LEL from LHL in consideration for the issue to LHL of 200,000,000 shares of the Company.
On 11 October 2006, the Company obtained a listing on the AIM.
As a part of the listing on the AIM, LHL sold a number of shares of the Company to investors at £ 1.95. The investment in LEL has been 
recognised at cost being the fair value of 200,000,000 shares of the Company at £ 1.95. The difference between the cost of the investment 
(USD 727,506,000) in LEL and the nominal value of Share capital of the Company (USD 18,654,000) has been recorded as Other reserve 
(Note 24). The acquisition of LEL has been accounted for using the uniting of interests method in the consolidated financial statements.
During 2006, the Company granted rights to its equity instruments to certain employees of LEL. The fair value of these shares at grant date 
was USD 17.8 million. The fair value was computed based on the Company’s share price on 11 October 2006 (£ 1.95). As part of the 
arrangements shares with a fair value of USD 11.9 million vested immediately and the balance is held under lock-in arrangements and vest 
over a period of two years. Accordingly, USD 3 million (2006: USD 12.5 million) has been recorded as an increase in the investment in LEL 
with a corresponding credit to Retained earnings.
During the year, the Company granted free shares and stock options to employees of LEL, LD and Inspec under its Free Share Plan and 
Executive Share Option Plan (Note 7). The fair value of these free shares and options at grant date was USD 968,000. These shares and 
options have a vesting period of eighteen months and thirty six months respectively. Accordingly, USD 0.3 million has been recorded as an 
increase in investment in subsidiaries with a corresponding credit to Retained earnings.
18 Inventories
      2007  2006
      USD’000  USD’000
Consumables      7,052  5,535
Less: Provision for slow moving and obsolete inventories      (347)  (1,004)
      6,705  4,531
The cost of consumable inventories recognised as an expense and included in contract costs amounted to USD 11.7 million (2006: USD 10.4 
million).
Notes to the financial statements
for the year ended 31 December 2007 (continued) 59
Lamprell plc
Annual Report  
& Accounts 2007 
19 Trade and other receivables
      2007  2006
      USD’000  USD’000
Trade receivables      58,565  52,335
Other receivables and prepayments      12,571  5,653
Advances to suppliers       –  18,760
      71,136  76,748
Less: Provision for impairment of trade receivables      (87)  (97)
      71,049  76,651
Amounts due from customers on contracts      24,868  36,857
Contract work in progress (Note 2.2)      54,033  –
      149,950  113,508
Amounts due from customers on contracts comprise: 
Costs incurred to date      216,007  133,697
Attributable profits       73,683  34,119
      289,690  167,816
Less: Progress billings      (264,822)  (130,959)
      24,868  36,857
An analysis of trade receivables is as follows:
      2007  2006
      USD’000  USD’000
Fully performing      26,153  34,734
Past due but not impaired      32,325  17,504
Impaired      87  97
      58,565  52,335
As of 31 December 2007, trade receivables of USD 26.2 million (2006: USD 34.7 million) were fully performing.
Trade receivables that are less than three months past due are not considered impaired. As of 31 December 2007, trade receivables of USD 
32.3 million (2006: USD 17.5 million) were past due but not impaired. These relate to a number of independent customers for whom there is 
no recent history of default. The ageing analysis of these trade receivables is as follows:
      2007  2006
      USD’000  USD’000
Up to 3 months      27,993  13,038
3 to 6 months      3,432  4,164
Over 6 months      900  302
      32,325  17,504 60
Lamprell plc
Annual Report  
& Accounts 2007 
19 Trade and other receivables (continued)
During 2007, trade receivables of USD 87,931 (2006: USD 74,184) were impaired and provided for. The ageing of these receivables is as 
follows:
      2007  2006
      USD’000  USD’000
Over 6 months      87  97
Group
The carrying amounts of the Group’s trade and other receivables are denominated in the following currencies:
      2007  2006
      USD’000  USD’000
US Dollar      53,731  49,710
UAE Dirham       3,711  2,625
Euro      1,123  –
      58,565  52,335
Movements on the Group provision for impairment of trade receivables are as follows:
      2007  2006
      USD’000  USD’000
At 1 January      97  32
Provision for receivables impairment      88  74
Receivables written off during the year as uncollectible      (27)  –
Unused amounts reversed      (71)  (9)
At 31 December      87  97
The creation and release of provision for impaired receivables have been included in ‘general and administrative expenses – others’ in the 
income statement (Note 8). Amounts charged to the allowance account are generally written off, when there is no expectation of recovering 
additional cash.
The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Group does 
not hold any collateral as security in respect of the outstanding trade receivables at the year end.
The carrying value of trade receivables approximates their fair value.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 61
Lamprell plc
Annual Report  
& Accounts 2007 
20 Related party balances and transactions 
Related parties comprise LHL (which owns 33% of the issued share capital of the Company), certain legal shareholders of the Group 
companies and Directors and key management personnel of the Group. Related parties for the purpose of parent company financial 
statements also include subsidiaries owned directly or indirectly. Other than disclosed elsewhere in the financial statements, the Group 
entered into the following significant transactions during the year with related parties at prices and on terms agreed between the related 
parties: 
      2007  2006
      USD’000  USD’000
Key management compensation      21,714  19,814
Sponsorship fees paid to legal shareholders of Lamprell Dubai LLC and Lamprell Sharjah WLL (Note 1)  131  80
Payments for use of a vessel owned by a former Director      –  37
Interest charged on loans to key management personnel      –  7
Key management compensation comprises:
Salaries and other short term employee benefits      7,495  3,980
Share based payments – value of service provided      14,250  15,160
Post-employment benefits      (31)  674
      21,714  19,814
Loans to Directors and key management personnel:
Beginning of the year      –  239
Loans advanced during the year      –  210
Loan repayments received      –  (449)
Interest charged      –  7
Interest received      –  (7)
End of the year      –  –
Due from/due to related parties
      2007  2006
      USD’000  USD’000
Due from a related party
Company
Lamprell Energy Limited (receivable in respect of management fees charged by the Company)   15,798  –
Due to a related party
Group
Lamprell Holdings Limited (USD 5 million and USD 3 million payable principally in respect of dividend  
declared and acquisition of Inspec respectively, by LEL)      –  8,098
Company
Lamprell Energy Limited (payable in respect of payments made on behalf of the Company)    –  66
LEL has provided a financial guarantee on behalf of Lamprell Energy Oil and Gas Limited, a company under control of LHL, in respect of 
certain royalty payment obligations of LEOGL. LHL has indemnified LEL for any payment it may have to make under its obligation to LEOGL 
and LHL has, in turn, been indemnified to the extent of 50% of the liability, if any, by a Director of LEL. 
In light of the above, and based on information available at 31 December 2007 and 2006, the possibility of an outflow of resources embodying 
economic benefits in relation to this guarantee is considered to be remote.
During the year, the Company has provided performance guarantees on behalf of its subsidiary. These guarantees issued in the normal 
course of business are outstanding at the year end and no outflow of resources embodying economic benefits in relation to these guarantees 
is expected by the Company.
Dividends paid by the Company include an amount of USD 6.4 million (2006: nil) in respect of free shares held by key management personnel 
(including those held by the EBT in respect of shares gifted) of which USD 5.8 million was paid to LHL, a company controlled by Steven 
Lamprell who is a member of key management.  62
Lamprell plc
Annual Report  
& Accounts 2007 
21 Cash and bank balances
Group
      2007  2006
      USD’000  USD’000
Cash at bank and on hand      11,828  8,705
Short term and margin deposits      147,260  11,072
Cash and bank balances      159,088  19,777
Less: Margin deposits      (9,824)  (3,367)
Cash and cash equivalents      149,264  16,410
At 31 December 2007, the cash at bank and short term deposits were held with six (2006: three) banks. The effective interest rate on short 
term deposits was 4.75% (2006: 4.68%) per annum. These deposits have an average maturity of seven days to one month. The margin 
deposits with the bank are held under lien against guarantees issued (Note 30).
22 Share capital
Issued and fully paid ordinary shares
Group
 Equity share capital
      Number  USD’000
At 1 January 2006      –  –
At 25 September 2006 – issued in connection with the acquisition of LEL and treated as if  
always in issue (Note 25)      200,000,000
+
  18,654
At 1 January 2006 – restated for the effect of the uniting of interests method of accounting*    200,000,000  18,654
At 31 December 2006 and 2007      200,000,000  18,654
The above includes 1,613,269 shares (2006:1,620,142 shares) gifted by LHL on 10 October 2006 and held by the EBT in trust for certain management personnel  
(Note 7).
+
 Includes 2 shares issued on incorporation of the Company.
* In line with the Group’s policy of the uniting of interests method of accounting for the acquisition of entities under common control as set out in Note 2.3, the shares 
issued on 25 September 2006, in connection with the acquisition of LEL, have been treated as if they have always been in issue hence are shown on the Group 
balance sheet at 31 December 2006. The difference between the nominal value of the shares issued by the Company (USD 18,654,000) and the nominal value of the 
LEL shares acquired (USD 82,000) has been taken to the Merger reserve (Note 25).
Company
 Equity share capital
      Number  USD’000
At 1 January 2006      –  –
4 July 2006 - Issued on incorporation of the Company      2  –
25 September 2006 - Issued in connection with acquisition of LEL (Note 17)    199,999,998  18,654
At 31 December 2006 and 2007     200,000,000  18,654
On 25 September 2006, the authorised share capital of the Company was increased from two ordinary shares of £1 each to 400,000,000 
ordinary shares of 5 pence each.
23 Legal reserve 
The Legal reserve of USD 24,077 (2006: USD 22,088) relates to subsidiaries incorporated as limited liability companies in the UAE. In 
accordance with the respective subsidiary’s Articles of Association and the UAE Federal Law No. (8) of 1984, as amended, 10% of the profit 
for the year of such companies is transferred to a Legal reserve. Such transfers are required to be made until the reserve is equal to, at least, 
50% of the share capital of such companies.
24 Other reserve
Other reserve of USD 708,852,000 represents the difference between the cost of the investment in LEL (USD 727,506,000) and the nominal 
value of Share capital issued by the Company to acquire LEL (USD 18,654,000) (Notes 17 and 22). The Other reserve is not available for 
distribution. In the prior year this reserve was termed as “Share premium”, whereas since the Company had utilised the merger relief provisions 
existing under Isle of Man Law the reserve should have been termed “Other reserve” arising from the application of IAS 27, “Consolidated and 
Separate Financial Statements”.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 63
Lamprell plc
Annual Report  
& Accounts 2007 
25 Merger reserve
      2007  2006
      USD’000  USD’000
Nominal value of shares of the Company      18,654  18,654
Share capital of LEL      (82)  (82)
Merger reserve on acquisition of LEL      18,572  18,572
Purchase consideration relating to acquisition of Inspec      4,000  4,000
Share capital of Inspec      (150)  (150)
Merger reserve on acquisition of Inspec      3,850  3,850
Total      22,422  22,422
On 11 September 2006, LEL acquired 100% of the legal and beneficial ownership of Inspec from LHL for a consideration of USD 4 million. 
This acquisition has been accounted for using the uniting of interests method and the difference between the purchase consideration (USD 
4 million) and Share capital of Inspec (USD 150,000) has been recorded in the Merger reserve. 
On 25 September 2006, the Company entered into a share for share exchange agreement with LEL and LHL under which it acquired 100% 
of the 49,003 shares of LEL from LHL in consideration for the issue to LHL of 200,000,000 shares of the Company. This acquisition has been 
accounted for using the uniting of interests method and the difference between the nominal value of shares issued by the Company (USD 
18,654,000) and the nominal value of LEL shares acquired (USD 82,000) has been recorded in the Merger reserve (Note 22).
26 Provision for employees’ end of service benefits
Group
      2007  2006
      USD’000  USD’000
At 1 January      8,039  5,868
Charge for the year (Note 9)      2,215  3,221
Payments during the year      (514)  (1,050)
At 31 December      9,740  8,039
Company
      2007  2006
      USD’000  USD’000
At 1 January      536  –
Transfer from LEL      –  184
Charge for the year/period      15  352
At 31 December      551  536
In accordance with the provisions of IAS 19, management has carried out an exercise to assess the present value of its obligations at 31 
December 2007 and 2006, using the projected unit credit method, in respect of employees’ end of service benefits payable under the UAE 
Labour Law. Under this method, an assessment has been made of an employee’s expected service life with the Group and the expected 
basic salary at the date of leaving the service. Management has assumed average increment/promotion costs of 4% to 5% (2006: 3% to 4%). 
The expected liability at the date of leaving the service has been discounted to its net present value using a discount rate of 6.25% (2006: 
6.11%).  64
Lamprell plc
Annual Report  
& Accounts 2007 
27 Trade and other payables
      2007  2006
      USD’000  USD’000
Trade payables      24,329  26,388
Other payables and accruals      52,902  34,125
Amounts due to customers on contracts
+
      120,087  11,891
Dividend payable
++
      143  –
      197,461  72,404
Amounts due to customers on contracts comprise:
Progress billings      327,710  93,859
Less : Cost incurred to date      (165,495)  (63,175)
Less : Attributable profits      (42,128)  (18,793)
      120,087  11,891
+
 Amounts due to customers on contracts include USD 25 million in respect of advances received from a customer before the related contract work has been carried 
out.
++
 The dividend payable represents amount held by the EBT in respect of shares gifted to employees held under lock-in arrangements. This dividend will be paid by the 
EBT to the employees upon completion of the vesting period.
28 Profit of the parent company
The profit of USD 21,822,143 (2006: Loss of USD 3,586,876) in respect of the Company has been included in these consolidated financial 
statements.
29 Commitments
(a) Operating lease commitments
The Group leases land and staff accommodation under various operating lease agreements. The remaining lease terms of the majority of the 
leases are between 7 to 24 years and are renewable at mutually agreed terms. The future minimum lease payments payable under operating 
leases are as follows:
      2007  2006
      USD’000  USD’000
Not later than one year      3,753  1,620
Later than one year but not later than five years      8,951  8,395
Later than five years      52,308  57,044
      65,012  67,059
(b) Other commitments
Letters of credit for purchase of materials and operating equipment      12,029  21,913
Capital commitments for purchase of operating equipment      6,976  1,664
Capital commitments for construction of a facility      13,962  8,173
30 Bank guarantees
      2007  2006
      USD’000  USD’000
Performance/bid bonds      107,672  24,138
Advance payment, labour visa and payment guarantees      6,838  3,364
      114,510  27,502
The various bank guarantees, as above, were issued by the Group’s bankers in the ordinary course of business. In the opinion of the 
Management the above bank guarantees are unlikely to result in any liability to the Group.
Notes to the financial statements
for the year ended 31 December 2007 (continued) 65
Lamprell plc
Annual Report  
& Accounts 2007 
31 Events after balance sheet date
The Board of Directors of the Company have proposed a dividend of 12.25 cents per share amounting to USD 24.5 million at a meeting held 
on 25 March 2008. In accordance with the accounting policy under IFRS set out at Note 2.16 this dividend has not been accrued at 
31 December 2007 (2006: 3.80 cents per share amounting to USD 7.6 million declared on 2 April 2007 was not accrued at 31 December 
2006). However, this is not in accordance with the Isle of Man Companies Acts 1931 to 2004 which require such a proposed dividend to be 
accrued at the balance sheet date.  66
Lamprell plc
Annual Report  
& Accounts 2007 
The following definitions apply throughout this document unless the 
context requires otherwise:
“Admission” – the admission of the entire issued ordinary share 
capital of the Company to AIM becoming effective in accordance 
with paragraph 6 of the AIM Rules
“Ahbab” – Ahbab FZCO
“AIM” – Alternative Investment Market – a market operated by 
London Stock Exchange Plc
“API” – American Petroleum Institute 
“BG India” – British Gas Exploration and Production India Limited
“Board” or “Directors” – the Board of Directors of the Company
“CBL” – Cleopatra Barges Limited 
“CEO” – Chief Executive Officer
“CSR” – Corporate Social Responsibility
“Company” – Lamprell plc
“DBMA” – Don Bosco Maritime Academy
“EBITDA” – Earnings before Interest, Taxes, Depreciation and 
Amortisation
“EBT” – Lamprell plc Employee Benefit Trust
“EPC” – Engineering, Procurement and Construction
“E&I” – Electrical & Instrumentation
“FPSO” – Floating, Production, Storage and Offloading 
“FTSE” – Financial Times Stock Exchange index
“Group” – The Company and its subsidiaries
“GSF” – Global Santa Fe
“GSP” – Grup Servicii Petroliere
Definitions
“HSE” – Health, Safety and Environment 
“HSEQ” – Health, safety, environment and quality
“IAS” – International Accounting Standards 
“IFRIC” – International Financial Reporting Interpretations 
Committee interpretation 
“IFRS” – International Financial Reporting Standards
“Inspec” – International Inspection Services Limited
“IPO” – Initial Public Offering
“ISO” – International Organisation for Standards
“JIL” – Jebel Ali Investments Limited
“Labour Law” – Labour Law (Federal Law No.8 of 1980 (as 
amended))
“Lamprell” or “Group” – the Company and its subsidiary 
undertakings 
“LD” – Lamprell Dubai LLC
“LEL” – Lamprell Energy Limited
“LEOGL” – Lamprell Energy Oil & Gas Limited
“LHL” – Lamprell Holdings Limited 
“LS” – Lamprell Sharjah WLL
“LTI” – Lost Time Incident 
“MOCL” – Maritime Offshore Construction Limited 
“MOL” – Maritime Offshore Limited
“SBM” – Single Buoy Moorings
“UAE” – the Federation of the United Arab Emirates
“United States” or “US” – the United States of America 67
Lamprell plc
Annual Report  
& Accounts 2007 
Notes 68
Lamprell plc
Annual Report  
& Accounts 2007 
Notes Lamprell plc is a leading contractor  
in the Arabian Gulf, providing specialist 
services to the offshore and onshore  
oil and gas industry. 
The principal markets in which the Company operates are:
»  upgrade and refurbishment of offshore jackup rigs;
»  new build construction for the oil and gas sector;
»  oilfield engineering services; and
»  EPC new build construction of jackup drilling rigs and liftboats.
Contents
Corporate Advisers
Principal Bankers
Lloyds TSB Bank plc
PO Box 3766
Dubai
UAE
Registrars
Capita Registrars (Jersey) Limited
PO Box 532
St Helier
Jersey JE2 3QA
Nominated Adviser and Broker
JPMorgan Cazenove Limited
20 Moorgate
London EC2R 6DA 
UK
Legal Advisers to the Company
Freshfields Bruckhaus Deringer
65 Fleet Street 
London EC4Y 1HS 
UK
Clyde & Co. 
PO Box 7001 
City Tower 2
Sheikh Zayed Road 
Dubai 
UAE
Auditors
PricewaterhouseCoopers
Sixty Circular Road 
Douglas
Isle of Man IM1 1SA
Megasilk is made from woodpulp which is sourced from 
sustainable forests and Elemental Chlorine Free (ECF), all 
inks used are vegetable based and 98% of this report can 
be recycled.
01 Highlights
02 Our facilities
04 Talented people
06 Year in review
07 Chairman’s statement
08  Chief Executive Officer’s 
statement
12  Expanding facilities
14 Operating review
20 Strong customer base
22 Financial review
26 Corporate social responsibility
28 Board of Directors
30 Directors’ report
33  Independent auditor’s report  
to the members of Lamprell plc
34 Consolidated income statement
35 Consolidated balance sheet
36 Company balance sheet
37  Consolidated statement of 
changes in equity
38  Company statement of changes 
in equity
39  Consolidated cash flow 
statement
40 Company cash flow statement
41 Notes to the financial statements
66  Definitions
ibc Corporate Advisers Lamprell plc Annual Report & Accounts 2007
Growth
Registered Office:
15-19 Athol Street
Douglas
Isle of Man
IM1 1LB
Operations:
PO Box 5427
Dubai
United Arab Emirates
Telephone: +971 6 5282323
Fax: +971 6 5284325
Email: lamprell@lamprell.com
Website: www.lamprell.com
Lamprell plc
Annual Report & Accounts 2007