FSA fines oil rig maker £2.4m for ‘significant’ failings

The City watchdog has fined oil rig maker Lamprell £2.4 million for “significant” failings in the way it reported its financial performance during the early part of last year.

The Financial Services Authority (FSA) said: “From early in 2012, Lamprell’s financial performance against its budget had been deteriorating due to operational issues.

“However, Lamprell did not update the market on its deteriorating financial performance until it released a trading update on 16 May 2012. In response to this trading update, Lamprell’s share price fell by 57 per cent, demonstrating the importance of that financial information.”

Lamprell chairman John Kennedy said: “This settlement draws a line under the investigation by the FSA and the matters to which it relates.

“The board and management can now exclusively focus their attention on more constructive matters and on upcoming opportunities, with a view to developing and growing the company further.”