Lamprell, an engineering and construction company acquired by Saudi Arabia’s Algihaz Holding in 2022, is experiencing a significant surge in its business activities, driven by a booming market in the Middle East. The company's bid pipeline has grown to over $55 billion, an all-time high, fueled by a wave of contracting activities, particularly in Saudi Arabia and the United Arab Emirates (UAE). This pipeline consists of real, active projects that the company tracks daily, providing at least a two-year visibility, and Lamprell remains highly optimistic about securing these opportunities. Close to 80% of these prospective projects are in the oil and gas sector, while the remaining 20% are in renewables, primarily offshore wind.

Strategic Market Focus and Client Base

Lamprell considers the Gulf Cooperation Council (GCC) region its "home turf," with a huge focus on Saudi Arabia and the UAE. The company is one of six active Long Term Agreement (LTA) contractors for Saudi Aramco, a relationship that provides a steady stream of maintenance and greenfield projects. Lamprell is also actively bidding for work with the Abu Dhabi National Oil Company (Adnoc), including both onshore and offshore elements of Adnoc’s massive Umm Shaif gas cap development. The company's clients are described as blue-chip entities, such as Aramco and Adnoc, who take a long-term view of the markets, insulating Lamprell from short-term volatility and ensuring a healthy longer-term outlook.

Geographical and Sectoral Expansion

Lamprell is expanding its geographical footprint beyond its core Middle Eastern markets. The company is positioning itself to secure a prized offshore pipelay contract from India’s state-owned Oil & Natural Gas Corporation (ONGC). This strategic move into the Indian market is particularly advantageous because the offshore campaign seasons in India and the Middle East are complementary, occurring at opposite times of the year. This allows Lamprell to utilize its assets more efficiently throughout the year, maximizing their utilization. Furthermore, the company is expanding its sectoral presence from its traditional offshore focus into the onshore oil and gas sector in the Middle East, a natural extension of its fabrication capabilities, and has already been awarded some work in this domain.

Enhanced Capabilities and Asset Base

A key development strengthening Lamprell's project offerings is the expansion into the transportation and installation sector by its parent company, Algihaz Holding, through its subsidiary Algihaz Marine Contractors (AMC). Historically, while Lamprell was part of Aramco’s LTA for Engineering, Procurement, Construction, and Installation (EPCI) projects, it lacked critical installation capabilities. This gap has been filled by AMC, which has acquired the specialized offshore pipelay vessel ‘Sevan Champion’ and secured long-term leases for other vessels. This integration allows Lamprell to offer complete EPCI solutions, and the company is already successfully bidding on a huge amount of work in collaboration with AMC.

Significant Fabrication Infrastructure

Lamprell operates a substantial network of fabrication facilities in the Middle East. This includes the Hamriyah fabrication yard in Sharjah, UAE, which spans 750,000 square metres. The company is also set to reinstate its Jebel Ali fabrication yard in Dubai, a 160,000 square metre facility mothballed for five years, which will be used for modules work. Additionally, Lamprell holds a key stake in the massive International Maritime Industries (IMI) yard in Saudi Arabia, which covers 12 million square metres. Collectively, these three facilities provide Lamprell with a very significant fabrication capability estimated between 180,000 and 200,000 tonnes per year. The company currently commands a project backlog of over $4 billion, with 70% from oil