LAMPRELLLAMPRELL

Analyst Presentation Analyst Presentation –– Site Visit, 22 November 2006Site Visit, 22 November 2006

22

I. OVERVIEW OF LAMPRELLI. OVERVIEW OF LAMPRELL

33

Overview of Overview of LamprellLamprell

ENERGY CONTRACTOR OF ENERGY CONTRACTOR OF THE YEARTHE YEAR

MIDDLE EAST & SUB MIDDLE EAST & SUB CONTINENTCONTINENT

A leading jackup rig refurbisher in the Arabian Gulf with a significant share of the market in the Middle East

Established over 30 years ago and is now providing specialised services to the offshore and onshore oilfield industries

Principal areas of expertise– Jackup rig upgrades and refurbishment– New build construction for the offshore oil

and gas industry – Land rig upgrades and refurbishment

Considerable expansion opportunities including– Buoyant market for rig refurbishment– Development of a new facility in the

Hamriyah Free Zone

2005 turnover of $205m and net income of $28.7m; 2006H1 turnover of $160m and net income of $26.8m

44

Company HighlightsCompany Highlights

Track record of organic growth

High quality earnings– Extensive level of repeat business– Contract expansion can significantly add to revenues– Robust management of commercial risk

Good cash generation and a strong balance sheet

Attractive market environment– Record level of drilling activity leading to high levels of rig demand– Additional rigs entering the Arabian Gulf– Many rigs in the region require upgrade and refurbishment

Regional leader in rig upgrade and refurbishment

Long standing client relationships with major international corporates

Currently there are physical barriers preventing entry of regional competition to new portside facilities

Highly experienced management team

55

LamprellLamprell Management TeamManagement Team

Steven Lamprell – President– Founder and currently 33.9% owner of Lamprell– Ongoing role, with particular focus on local liaison and political relationships in United Arab Emirates

Peter Whitbread –Chief Executive Officer and Chairman– 14 years at Lamprell– 34 years in the oilfield services sector– Will move to Chairman by end of 2007

David Moran – Chief Operating Officer and Chief Financial Officer– 14 years at Lamprell– Qualified accountant with Coopers & Lybrand– Will replace Peter Whitbread as Chief Executive Officer by end of 2007

Non-executive Directors– Peter Birch (Senior Independent Non-executive) – Chairman of Land Securities and Kensington,

SID of Trinity Mirror – Nigel McCue – CEO of Jura Energy and NED of Dragon Oil and Sky Petroleum– Richard Raynaut – former CFO of SBM offshore division

Business line managers– Team of 5 VPs who collectively have over 100 years industry experience

Highly experienced management teamHighly experienced management team

66

II. MARKET OVERVIEWII. MARKET OVERVIEW

77

FavourableFavourable Energy EnvironmentEnergy EnvironmentFocused on Middle EastFocused on Middle East

Sustained high oil price environment

Limited existing production capacity

Significant cash generation and resources available for oil majors and National Oil Companies to fund increase in exploration and production capacity

Arabian Gulf critically important to world’s energy supply with 28% of current production and 61% of proven reserves1

Physically benign operating conditions contribute to low production costs

The UAE is the hub for support services to the region’s oil industry

Limited industrial refurbishment and fabrication facilities, especially with quayside access

1 Source: BP

20%

22%

24%

26%

28%

30%

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

% global output produced in Persian Gulf

Source: Energy Information Administration, April 2006

1999

2000

2001

2002

2003

2004

2005

2006

0

50

100

150

200

250

300

10

20

30

40

50

60

70Capex ($bn)

Brent oil price$/bbl

Brent spot E&P Capex

Source: Datastream for oil price; OPEC for E&P Capex

88

Overview of Overview of JackupJackup Rig MarketRig Market

Global shortage of jackup rigs– Attrition of global fleet partly

from natural disasters– Ageing fleet– Many years of underinvestment– Increasing delivery period for

new rigs

Increased global demand for jackuprigs

Day rates have increased significantly over the last 12 months– 250ft rigs have increased 150%

from $50,000/day to $125,000/day

More rigs entering into the regional market

Client requirements and operational advancements have driven the need to upgrade assets

0

10

20

30

40

50

60

70

80

90

100

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

Ann

ual d

eliv

erie

s

0

75

150

225

300

375

450

Cum

ulative deliveries

Approximately 90% of fleet is at least 20 years old

Source: ODS Petrodata

Increased day rates driving demand for Increased day rates driving demand for rig upgrades and refurbishmentrig upgrades and refurbishment

99

FPSO MarketFPSO Market

Floating Production Storage Offloading (FPSO) is a growth market– Production moving from continental

shelf areas to deeper water– New geographically remote fields

require higher production storage facilities

– Number of deep and ultra deep water fields due to enter production

FPSO vessels operate in a global arena

Increased activity, particularly in– Africa – 32% of global expected

expenditure between 2006—2009– Latin America– Asia

89 FPSO’s installed between 2000 –2005 with a further 125 planned in next 4 years

Limited facilities for fabricating FPSO process modules in the region

FPSO Global Expenditure Forecast

Source: Infield Systems 2005

0

1,000

2,000

3,000

4,000

5,000

6,000

2000 2001 2002 2003 2004 2005 2006 2007

$ m

illion

Global expenditure

1010

Land rigs are an essential element of exploration and production in the Arabian Gulf

Pressure to increase land based drilling especially in Saudi Arabia and also Libya

Move to outsource land rig repair and planned maintenance programmes

Increased regulation demanding upgrades

Few available facilities offering integrated services (including fabrication, assembly and mechanical works) associated with land rig refurbishment and new builds in the Arabian Gulf region

Land Rig MarketLand Rig Market

0

50

100

150

200

250

300

350

2003 2004 2005 2006

Rig count

10% p.a. growth

Rig

num

ber

s

Middle East Land Rig Activity

Source: Schlumberger web site

1111

III. LAMPRELLIII. LAMPRELL

1212

Business established in 1974

Refurbished first jackup drillingrig in 1992

Executed more than 100 rig refurbishment projects at its Sharjah facility, now the Arabian Gulf’s leading jackup rig refurbisher

Diversified into offshore fabrication projects in the late 1990’s

Expanded into the FPSO market and commissioned the design and construction of its fabrication facility in Jebel Ali Free Zone in 2002

Jebel Ali facility has since further expanded, in response to customer demand for increased services, including construction of topside decks and land rigs

Planned addition of a major new facility in Hamriyah Free Zone

Development of LamprellDevelopment of Lamprell

Arabian Gulf

Gulf of Oman

SharjahDubai (Jadaf)

Jebel Ali

United Arab Emirates

Hamriyah

1313

SharjahSharjah FacilityFacility

Portside facility based at Sharjah

Variety of work undertaken, ranging from simple repairs to major upgrades and refurbishments

New opportunity to rehabilitate hurricane damaged rigs

Larger projects generally have a final contract value of over $20m and have reached up to $35m in the past

25 rigs were repaired in 2005 compared to 19 in 2004

The regional rig count is currently increasing

Repeat business – rigs return to our facility on a regular basis

0

5

10

15

20

25

30

2003 2004 2005

AHI QGM MIS DDD Asry Lamprell

Rig

s re

furb

ished

Source: Lamprell estimates

Regional Competitors

1414

Rig Refurbishment Case StudyRig Refurbishment Case StudyTrident VIIITrident VIII

Client: Triton Industries (member of Transocean Group)

Date of proposal: 28 February 2005

Initial contract value: $9.9m

Final account value: $19.5m

Safety award recognition of 1 million man hours without a lost time incident (LTI)

Original contract schedule was for 90 days; having doubled the work scope, the rig left after only 110 days

1515

Jebel Ali FacilityJebel Ali Facility

Facility completed in 2002 to service the FPSO market

Subsequent expansion driven by customer demand

Based at Jebel Ali Free Zone with portside access

Products used in key offshore production geographies

Prominent facility in the Arabian Gulf for the fabrication of:– Process modules– Turrets– Process barges– Offshore fixed structures– Land rigs– Jackup rigs– Topside decks

1616

New Build Case StudyNew Build Case StudyEnfield TurretEnfield Turret

The Enfield Bow mounted fully disconnectable, Typhoon class Turret and Riser column

Client: Single Buoy Moorings Inc. (SBM)

End user: Woodside Petroleum

Construction period to load out

Turret: August 2003—August 2004

Column: August 2003—December 2004

The 2,800 tonne bow mounted disconnectable turret is the largest of its kind in the world

Contract value $11m

The first time a turret of this size has been full-disconnect tested by the fabrication yard prior to load out

1717

Oilfield EngineeringOilfield Engineering

Dedicated facilities in Jebel Ali Free Zone

Upgrade and refurbishment of land rigs

Projects undertaken include:– Drilling equipment overhaul– Mud system fabrication– Rig camp construction

Client-driven demand to move into new build land rig construction

American Petroleum Institute (A.P.I.) accredited

1818

HamriyahHamriyah Free ZoneFree Zone

A new 330,000m2 quayside facility

1.25km of deepwater berthing

Intended capabilities will include– Quayside capacity for in excess

of 10 rigs from 2009– Capacity for multiple new build

jackup construction– FPSO topsides integration– Free zone status– Modern client and employee

facility

New New HamriyahHamriyah sitesite

Current temporaryCurrent temporaryHamriyahHamriyah facilityfacility

1919

ENERGY CONTRACTOR OF ENERGY CONTRACTOR OF THE YEARTHE YEAR

MIDDLE EAST & SUB MIDDLE EAST & SUB CONTINENTCONTINENT

Operating StrategyOperating Strategy

Quality and customer satisfaction

Prudent financing and cash flow management

Focus on health and safety and the environment

Human resource development

Active management of businessrisk, including a thorough understanding of operational and counterparty risk

Limited design or engineering risk

Emphasis on timely and managed delivery

2020

Top 5 Clients by Revenue ($m)

Key clientsKey clients

Major international corporateclient base

Focus on client service and long-term relationships

History of repeat business and contract expansion

2003 2004 2005

18.7 11.6 38.0

12.7 32.7 29.4

2.8 6.6 27.0

- 0.3 25.7

2.8 17.5 18.0

ClientsClients

End UsersEnd Users

2121

Competition and Competition and Lamprell’sLamprell’sPosition in the MarketPosition in the Market

Dubai Drydocks

Gulf Piping Company

Maritime Industrial Services

Main Regional CompetitorsLamprell’s Strengths

Jurong Shipyard - Singapore

Keppel Fels - Singapore

Keppel Offshore & Marine - Singapore

Sembawang - Singapore

Signal - USA

Main Global Competitors

Longstanding and trusted relationships with customers and suppliers

Emphasis on maintaining high quality standards

Located in an important regional market

Modern purpose built facility in Jebel Ali

Retention of skilled workforce

Free zone environment

Experienced management team

Project and risk management skills

Safety record

Record of on-time delivery

2222

IV.IV. FINANCIALSFINANCIALS

2323

Strong sales growth driven by increasing market demand

Service capacity has increased due to new facilities at Jebel Ali

Consistent margin improvement

Zero tax

Increase in earnings

Well placed for further growth in 2006 and beyond

160205

10670

2003 2004 2005 2006H1

7.9 12.8

28.231.6

11%15%

12%18%

2003 2004 2005 2006H1

EBITDA ($m) & margin (%)

Net earnings ($m) & margin (%)

Turnover ($m)

Summary Profit and LossSummary Profit and Loss

5.6 10.2

26.828.7

17%8%

14%10%

2003 2004 2005 2006H1

H1 Interims* ($m) 2005H1 2006H1

Turnover 91 160

EBITDA 12.9 28.2

Net earnings 11.3 26.8

*

*

*

* Half year interims are unaudited

2424

Profit & LossProfit & Loss

(US$ m)2003

FY2004

FY2005

FY2005

H12006

H1Contract revenue 70.40 105.90 205.04 90.69 160.08Contract costs (58.33) (88.37) (163.82) (73.04) (124.50)Gross profit 12.07 17.52 41.22 17.65 35.58Gross margin 17.1% 16.5% 20.1% 19.5% 22.2%Other operating income 0.03 0.01 0.37 0.03 0.73Selling & distribution (0.50) (0.68) (0.64) (0.34) (0.58)G&A (6.13) (6.69) (12.62) (6.01) (9.57)EBITDA 7.90 12.76 31.64 12.86 28.20D&A (2.43) (2.60) (3.31) (1.56) (2.00)Operating profit 5.47 10.17 28.33 11.30 26.20Operating margin 7.8% 9.6% 13.8% 12.5% 16.4%Interest income 0.09 0.06 0.37 0.04 0.55Pre-tax Profit 5.57 10.23 28.69 11.34 26.75

2525

Balance SheetBalance Sheet

($m) 2003FY

2004FY

2005FY

2006H1*

28.2

115.5

(63.0)

52.5

80.6

(6.5)

74.2

74.2

Non-current assets 17.8 17.8 20.7

Current assets 35.0 66.0 113.5

Current liabilities (11.9) (31.8) (55.8)

Net current assets 23.1 34.2 57.7

Total assets less current liabilities 40.9 52.0 78.4

Non-current liabilities (3.3) (4.1) (5.7)

Net assets 37.6 47.9 72.7

Equity shareholders’ funds 37.6 47.9 72.7

* Half year interims are unaudited

2626

Cash FlowCash Flow

(US$m)2003

FY2004

FY2005

FY2005

H12006

H1

Operating Profit 5.47 10.17 28.33 11.30 26.20

Depreciation & Amortisation 2.42 2.60 3.31 1.56 2.00

Working capital movements (2.53) (2.26) 4.04 (14.54) (23.49)

Others 0.24 0.90 1.36 0.57 0.06

Cash generated from operations 5.60 11.40 37.03 (1.11) 4.77

Net Interest 0.09 0.06 0.37 0.04 0.55

Margin Deposits 0.04 (0.51) (0.98) (0.56) (0.89)

Net Capital Expenditure (3.59) (2.54) (5.90) (3.41) (9.45)

Funds due from/to related parties (0.26) (6.59) (7.26) 3.16 17.62

Dividends (8.58) (3.81) (3.81) (25.32)

Net Acquisitions/Disposals 2.71

Net Cash Flow (6.70) 1.84 19.44 (5.70) (10.01)

Opening Net Cash/(Debt) 15.17 8.46 10.30 10.30 29.74

Closing Net Cash/(Debt) 8.46 10.30 29.74 4.60 19.73

2727

V.V. STRATEGY AND PROSPECTSSTRATEGY AND PROSPECTS

2828

Future Strategy and ProspectsFuture Strategy and Prospects

Maintain a leading position in the growing jackup rig market

Maintain focus on repeat business and continue expansion of services

Investment in a new facility in Hamriyah Free Zone

Continue to expand existing client base

Commence new build jackup and land rig construction

Increase operating efficiencies through investment in operating equipment and personnel

Retain and attract skilled labour and management

On IPO Lamprell will be well positioned to take advantage of future growth opportunities

LAMPRELLLAMPRELL

Analyst Presentation Analyst Presentation –– Site Visit, 22 November 2006Site Visit, 22 November 2006