Environmental solutions provider Lamor announced on Sunday evening that the company has changed its contract to operate in Saudi Arabia by NEOM Company with.
Lamor will supply oil prevention technology to NEOM for nine million euros, when in May the company announced that it had signed a contract worth about 55 million euros with NEOM.
Lamor has changed the value of the order in the company’s order book to match the final total value of the contract. Deliveries have started and we aim to complete them between January and March of next year.
Most of the transaction amount will be paid in the last quarter of this year, the release states. According to Lamor, the deliveries have a positive effect on the company’s committed working capital and cash situation.
The company gave result warning on Fridaywhich it justified by the fact that the negotiations with NEOM have been postponed, as well as the large deliveries of the last quarter. Lamor already announced in September that the company will start negotiations with NEOM on a proposal related to delimiting the project’s division of labor.
Last year, Lamor’s turnover was 123 million euros and the adjusted operating profit was 10.9 million euros. Lamor expects this year’s turnover and adjusted operating profit to remain the same as last year.
Before the profit warning, Lamor estimated that the turnover would be at least at last year’s level, but the company did not give guidance on the result, citing the uncertain market situation.