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LONDON (Alliance News) - SeaEnergy PLC shares dropped on Wednesday after it reported a wider pretax loss in 2014 as a rise in revenue was offset by an impairment made against its investment in fellow AIM-listed Lansdowne Oil and Gas PLC, which today said it is in potential merger talks.
SeaEnergy shares were down 12.5% to 21.00 pence per share on Wednesday morning, one of the worst performers in the AIM All-Share.
The offshore energy services business and oil and gas investment company reported a pretax loss of GBP2.5 million in 2014, significantly wider than the GBP804,000 loss reported in 2013 as a rise in revenue was offset by an impairment.
SeaEnergy recorded an impairment to its investment in fellow-listed Lansdowne Oil and Gas PLC after Lansdowne shares fell in value over the period. SeaEnergy currently holds a 18.7% stake in Lansdowne, which, on Wednesday said it was in talks about a potential merger after it launched a strategic review of the company and its assets.
SeaEnergy did not mention the news released by Lansdowne about the potential merger, but said it hopes Lansdowne can secure a farm-out deal for its Barryroe license offshore Ireland and said it will reverse the impairment if the share price improves.
Revenue in the period rose to GBP7.3 million from GBP5.0 million, reflecting growth from its technology company R2S VAM, its consulting operations, and a first full year's activity from its Marine's ship management operation.
"SeaEnergy has refined the strategy we set out in 2012 and is now focussed on the parts of the business with the strongest growth potential, most attractive financial characteristics and best established client list," Chief Executive John Aldersey Williams said.
"We expect to see strong internationalisation in R2S VAM in 2015, and more opportunities for additional complementary services being delivered in support of this and overall SeaEnergy looks forward to 2015 with confidence that it will deliver growth for shareholders," said Williams.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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