LONDON (Alliance News) - SeaEnergy PLC saw its shares fall 56% on Friday, after it said it was in discussions to sell its R2S Visual Asset Management business, as its cash position is becoming constained due to the impact on SeaEnergy of the decline in the oil and gas industry.
The offshore energy services business said it was looking into a disposal of its software business and, if this does not go ahead, it will need additional funding to be able to continue to trade beyond May. It is currently generating a loss.
Shares in SeaEnergy dropped to 1.58 pence on Friday.
SeaEnergy said progress towards profitability had been good until the significant decline in the oil price which commenced in late 2014. This led to the deferral or cancellation of many projects by its oil company customer base.
Trading conditions within the oil and gas industry have deteriorated further since the start of 2016, SeaEnergy said, and a number of projects which were expected to be undertaken in the early part of the year have been deferred to later in the year or beyond.
It said the loan facilities announced in November 2015 have proved "insufficient", and its cash position is becoming constrained.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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