Shares in Lamprell (LAM) rose 15 per cent on news that the rig maker more than doubled adjusted net profits to $93.2m (£63m) in 2014. Although revenues were broadly static on the previous year, improved efficiency and project execution resulted in a $50m reduction in selling costs.
Activity was solid in the new-build business, while rig refurbishment activity gained momentum through the second half of the year. The company completed a record number of big-ticket projects, and - crucially - wasn't forced to utilise contingency funds due to improved operational performance. This had a positive impact on gross margins, offsetting weakness in the onshore and offshore construction business. Here, revenues are coming under pressure as capital budgets in the oil and gas industry are reined in.