SeaEnergy Expects Results Broadly Flat With Improved Second Half

LONDON (Alliance News) - SeaEnergy PLC expects its 2015 results to be broadly flat year-on-year, with expectations for an improvement performance from its R2S business in the second half, which will help to offset problems faced in the first half by the oil and gas industry.

The company expects to post revenue of GBP2.7 million in the first half of the year, down from GBP3.1 million a year earlier.

SeaEnergy said it is taking action to reduce its costs in the face of low energy prices, including an exit from its marine business and cost-cutting measures in its central function. The group is also seeking to diversify the income stream of R2S in order to reduce its reliance on oil and gas.

"The company is taking active measures to address the current levels of activity in its main markets by reducing central costs and withdrawing capital from non-core areas. Financial discipline and a continued drive to realise the pipeline of opportunities will continue to be the focus of the business," said Chairman David Sigsworth.

"As with 2014, the results for the second half will be dependent on winning new business and converting the existing pipeline of opportunities. Operators realise significant operating efficiencies and cost reductions through using R2S and this remains the cornerstone of our offer," Sigsworth added.

SeaEnergy shares were down 4.4% to 11.00 pence on Tuesday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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