LONDON (Alliance News) - SeaEnergy PLC on Thursday said its half-year loss narrowed on the back of a jump in revenue and said it expects to become profitable in the near-term as all three of its businesses continue to produce positive performances.
The energy services company said its pretax loss in the six months to June 30 narrowed to GBP238,000, against a GBP612,000 loss for the same period last year.
Revenue for the group was up to GBP3.6 million in the period, against GBP2.2 million last year, though the company's push towards profitability was held back by a big rise in the cost of sales, it said, which more than doubled in the period to GBP2.7 million from GBP1.2 million in 2013.
But the company said all three of its business segments are now showing potential and that it is confident for the future. It said it expects to become profitable in the near-term and expects the positive performance from its businesses to continue into the second-half.
The group recently reorganised its business to focus on the R2S business it acquired in 2012 and the division is performing well, generating a GBP1 million contribution to the group's gross profit. In the half-year, SeaEnergy said the international expansion of R2S resulted in contract wins in the Gulf of Mexico and the Bay of Campeche in Mexico. The unit also extended its contract with Total E&P UK Ltd in the North Sea during the period.
SeaEnergy added R2S revenue is traditionally weighted to the second-half and said this is holding true so far in the period, with R2S winning client commitments for "significantly" more work than in the first-half. The company expects year-on-year revenue growth for R2S to continue.
The group's Marine business established a ship management joint venture in June with Go Offshore (Asia) Pte Ltd which is set to start trading in the second half, with revenue from the existing three vessels under management now flowing through the SeaEnergy Ship Management subsidiary.
The group said its Consulting business has grown, saying it has both increased the scope and duration of existing contracts and has picked up new agreements in the period.
"We are delighted to report this exciting acceleration in all of the group's activities. Our continuing rapid growth, and particularly our international expansion, will continue to build shareholder value," said SeaEnergy Chairman David Sigsworth.
SeaEnergy shares were down 1.3% to 35.55 pence per share on Thursday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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