Shares in oil services provider Lamprell tumbled after the company revealed that it will be forced to book a $14.3m (£9.1m) provision due to cost overruns on two fixed-price liftboat projects for Fred Olsen Windcarrier and Seajacks 3.
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The provision, which amounts to around 5.5p a share, or 18 per cent of this year's projected earnings, came about through a combination of increased labour, contracting and raw material costs. Despite this setback, Lamprell remains confident that it will be able to meet full-year market expectations as it will benefit from the release of contingencies on existing projects.
