Normally I would agree and I've done this over the past six years. However, now I'm at the point where I don't feel I have enough information to make an informed decision. Just a few months ago we were told that we were on track for record profits despite the oil price and then suddenly out of the blue there's a profit warning. I appreciate the oil price is what it is, but most of all I want to know *how* they're going to cut central costs and when. If I feel confident that there is a plan in place to weather this through then I will hold or maybe add, but right now I feel like I'm being kept in the dark.
The following is from stewy_18 on ADVFN. If you agree then please support this.
Below is an open letter I have written to JAW expressing my concerns about the way SeaEnergy is being run. If you agree with the content, I would really appreciate if you could send me an endorsement mail also noting your holding in number of shares to firstname.lastname@example.org . Depending on whether I get a satisfactory response from JAW or not I may have to set up a conference call to impose upon him the seriousness of the situation we find ourselves. If I do not get any endorsements however....
Please be kind enough to have a read. I will ask David Stredder and Chris Boxall if they can retweet and I will be asking David the best way to continue here.
Open letter to John Aldersey-Williams CEO of SeaEnergy 08th June 2015
Having presided over massive shareholder value destruction over the past 2 years, I am becoming very concerned you are not taking this grave situation we, as shareholders of SeaEnergy, find ourselves at this moment in time, seriously.
I’m afraid the feedback received from the AGM was less than satisfactory. I would like clarification on certain points to ensure we, as shareholders, and the board of SeaEnergy are aligned going through this difficult time.
One cannot help the low price of oil environment we find ourselves in. This is unfortunate, but the low price of oil means you have to react accordingly. To start with, you have to lower your central costs.
Saying you are going to lower your central costs is one thing. You have been saying you are aware central costs are too high for at least two years now. There was no clear plan given at the AGM on how you are going to do this. You need to provide an action plan and make this visible to shareholders so we can monitor your success. It is clear to all shareholders that you have a layer of management that is not necessary and needs slimming down drastically. You need to spell out how you are going to reduce costs and how much you are going to reduce them by. This is the most crucial point and I expect a bit more detail in the coming weeks on what exactly you are going to do to reduce these costs.
Can you also assure shareholders there will be no placing this year?
The asset sale of SeaEnergy’s stake in Lansdowne Oil and Gas is another important topic. We have seen the value of this asset diminish from £18 million at the height of its value to circa £1 million presently. The wisdom of not selling that asset in full or in part remains a very dubious decision. Can you provide assurances that you will do what’s best for SEA energy shareholders, not what is best for you (as a Lansdowne Oil and Gas shareholder) or Lansdowne Oil and Gas where you are a non-executive director?
Could you also advise us how you are exiting the ship management business? Have you put this part of the business up for sale? If so what do you expec
I was a big advocate of SEA and averaged 20p share but sold out at 27p as was not happy with trading update on impairment charge due to Lansdowne Oil. At no time did I think SEA would issue a profit warning, particulary on their R2S Visual Asset Management business as they claimed it had a "Strong outlook for the start of 2015 ......and a .... strong order book for 2015" .
The CEO recently said " In the face of weaker oil prices, the Company has shown resilience....... R2S VAM continues to show growth and attractive margin potential" but a few week later says "SeaEnergy does not now expect to achieve the overall levels of turnover it previously anticipated".
Hello, what happened to your Governance, namely to provide leadership, to ensure that the necessary resources are available to drive the business forward. The oil crisis was no secret so what was contingency strategy? Well by the looks of things - very little! To respond to oil price weakness Sea should have been diversifying R2S Visual Asset Management business into new sectors e.g.. Nuclear energy, Building sector etc. Their Forensic side is currently outperforming its budget.
At these price levels one could be tempted to buy but what is the upside for the next twelve months? I see none. So it will have to go single digit for me to buy as a long term investment for I see very little movement here for the next 24 months.
I do give credit to SEA for being communicative and open, ensuring that all information is available to all shareholders, even the bad. That shows to me that SEA is a honest and trustworthy company and I believe will turn the business around but the wait is to long for me. Shame, but many a good company are reeling from the oil demise.
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