Lamor Corporation Plc Company release, inside information 10 May 2022 at 8:15 p.m. EEST
Positive profit warning: Lamor raises its guidance for 2022 and publishes preliminary information about the result of the first quarter
Lamor Corporation Plc raises its revenue and adjusted EBIT guidance for 2022. Lamor now estimates the revenue to be at least EUR 120 million and adjusted EBIT to be at least EUR 14 million for the full year 2022. Earlier the revenue was estimated to be at least EUR 110 million and adjusted EBIT to be at least EUR 12 million.
Raising the guidance of revenue and adjusted EBIT is related to, among others, environmental response and clean-up projects started at the beginning of 2022, which have turned out to be larger in scope and taking longer than expected.
The preliminary revenue for the first quarter of 2022 totalled approximately EUR 43 million (EUR 7 million) and the adjusted EBIT approximately EUR 6 million (EUR -1 million). In addition, an impairment of approximately EUR 2 million relating to an investment in an associated company in Russia is included in non-recurring items in the first quarter. Lamor will publish its first quarter results on 17 May 2022.
Revised guidance for 2022
Lamor estimates its revenue to be at least 120 million for the full year 2022. Adjusted EBIT is estimated to be at least EUR 14 million.
Lamor has a strong order backlog for 2022. Since a significant part of the revenue is generated by large service project deliveries, any major delay in the project progress would have a negative impact on revenue and profit for 2022.
Lamor closely follows how the Russian invasion of Ukraine is affecting company’s operating environment. Due to the war, Lamor has ceased the sales activities of the products and services in Russia. War related global cost inflation as well as the shortage of raw materials and components is having an effect also on Lamor’s business. Lamor will continue to monitor the situation carefully.
In addition, any potential virus variant of the COVID-19 could have a negative impact on Lamor’s revenue and result in 2022 by impacting Lamor’s capabilities to deliver projects efficiently.
The previous guidance for 2022, issued on 3 March 2022, was as follows:
Lamor estimates its revenue to be at least 110 million for the full year 2022. Adjusted EBIT is estimated to be at least EUR 12 million.
Lamor has a high order backlog coverage to back up its revenue and result for 2022. Since a significant part of the revenue is generated by large service project deliveries, any major delay in the timing of the project progress is posing a risk for 2022 performance.
The unjustified military actions taken by Russia against Ukraine increase the overall uncertainty and impacts the outlook of the world economy. The military actions are exposing especially Lamor’s business in Russia, but the impact is, however, assessed to be low. In addition, the military actions may create disturbance for instance in Lamor’s supply chain and logistics.
In addition, any potential virus variant of COVID-19 could have a negative impact on Lamor’s revenue and result in 2022 by impacting Lamor’s capabilities to deliver projects efficiently.
Mika Pirneskoski, CEO, Lamor Corporation Plc, tel. +358 40 757 2151
Timo Koponen, CFO, Lamor Corporation Plc, tel. +358 40 749 2986
Danske Bank A/S, Finland Branch, tel. +358 50 590 7667
Lamor in brief
Lamor is one of the leading global providers of environmental solutions. Lamor provides its customers with equipment used for oil recovery, waste management and water treatment as well as versatile environmental solutions and services, such as clean-up and preparedness services related to oil spill response and oil spills, services for the treatment of waste and tailored and adapted water treatment solutions. Lamor operates together with its local partners, offering a wide selection of solutions, which can be tailored according to the needs of each customer, and aiming to clean the world, for which the company has worked since its incorporation. The company's share is listed on the Nasdaq First North Premier Growth Market Finland marketplace maintained by Nasdaq Helsinki under the trading code LAMOR. Further information: www.lamor.com