(Reuters) - Oil rig builder Lamprell Plc (L:LAM) cut its full-year forecast and said it did not expect revenue growth from potential contract awards until 2019 as lower activity levels continued to plague the industry.
The company said it expected revenue for 2017 to be in the range of $370 million (272.52 million pounds) to $390 million, as it saw continuing low levels of walk-in work. Lamprell had forecast full-year revenue to be in the lower half of the $400 million-$500 million range in March.
Lamprell said it did not expect any potential improvement in market conditions to impact its business in 2018 due to the lag between improved market conditions and project awards in its business streams.
The company expects 2018 revenue to be 10 percent lower than 2017. Lamprell said in March that it expected a recovery in activity in 2018.
However, the company said its bid pipeline rose to $3.1 billion at the end of June from $2.5 billion at the end of December, on higher bidding activity in its core markets and new strategic initiatives in the renewable sector.
Lamprell, like its peers, has been cutting costs as oil explorers have slashed spending and cancelled contracts to counter weak oil prices.
Lamprell, which runs three rig building yards in the UAE, said revenue fell 64.7 percent to $159.2 million in the first half of the year.
Lamprell eked out a profit of $1.1 million from continuing operations in the period, compared with a loss of $4.4 million, a year ago.