LONDON (Alliance News) - SeaEnergy PLC Tuesday warned that revenue in 2015 will be below its previous expectations although broadly similar to 2014, as the steep fall in the oil prices in the second half of last year has been affecting more of its markets than it had hoped.
The energy services company said it had expected the oil price decline to mainly affect mature oil and gas basins like the North Sea, and it had moved to try and offset that hit by accelerating its move into less mature international markets. However, it said its R2S visual asset management software and service business was also now reporting that projects were being delayed later in 2015 or pushed into 2016, and its Max and Co consulting business was being hit by project deferrals and budget freezes.
The company said its accelerated move into international markets had enabled it to identify a number of specific opportunities which are expected to contribute to revenue in 2015.
Its Forensic unit is also "outperforming its budget" and is seeing strong growth in licensing activity, especially in North America.
However, "SeaEnergy does not now expect to achieve the overall levels of turnover it previously anticipated, but expects to achieve broadly comparable performance to 2014, despite the serious downturn in oil and gas activity levels," it warned.
The company reported revenue of GBP7.4 million in 2014 in April, up from GBP5.1 million in 2013. At that time, it had budgeted for an "improved operating performance" in 2015 and said it was "confident" that "the new focus on R2S VAM and Consulting will enable the company to achieve faster growth".
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
