30 Jun 2015 07:00
30 June 2015
SeaEnergy PLC
Pre-close statement
SeaEnergy PLC (AIM: SEA) ("SeaEnergy" or the "Company") announces a pre-close trading update in relation to trading for the six months ending 30 June 2015. SeaEnergy expects to announce its unaudited interim results for that period early in September 2015.
On 3 June 2015 SeaEnergy announced that it expected its results for 2015 to be broadly comparable to its performance to 2014, despite the serious downturn in oil and gas activity levels.
For the six months ended 30 June 2015 SeaEnergy expects to report turnover of c. £2.7m (2014 £3.1m) and a loss from continuing operations. As in previous years R2S activity levels are expected to be higher in the second half and the Company expects to achieve operating performance before any non-recurring items broadly comparable with 2014.
Over the first half of the year the Company has been taking active measures to address the downturn in oil and gas activity levels including:
- a decision to exit Marine activities. The Company is in the early stages of discussions regarding the future of the ship management operation which if successful would see that team and associated overheads transfer to a new owner;
- a program of central overhead reduction which is expected to result in central costs of c. £1.75 million in 2015, and further reductions to £1.5 million in 2016;
- as part of this program, John Aldersey-Williams (CEO) has agreed to waive 25% of his salary and pension entitlement and the other directors have agreed to waive 20% of their salaries and pension entitlement or non-executive fees for the period from 1 June to 31 December 2015 which will result in a cost saving of £75,500 for the that period;
- renegotiation or cancellation of various contracts for corporate activities,
- taking the decision not to replace the Operations Director following his departure earlier this year; and
- in addition, SeaEnergy is developing additional potential revenue streams for R2S outside the oil and gas sector, to diversify the revenue base.
Commenting, David Sigsworth, Chairman of SeaEnergy, stated:
"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. 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"
For further information contact:
SeaEnergy PLC |
+44 1224 748480 |
John Aldersey-Williams, Chief Executive | |
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Stifel Nicolaus Europe Limited (NOMAD) | + 44 20 7710 7600 |
James Grace Jessica Kalyanpur | |
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Bell Pottinger - Public Relations | +44 20 3772 2500 |
Rollo Crichton-Stuart | |
Lucinda Alderson | |
Notes
About SeaEnergy PLC:
SeaEnergy PLC is an innovation-led offshore energy services business, based in Aberdeen, Scotland and listed on the London Stock Exchange's AIM Market. The Group's three active divisions comprise R2S, SE Innovation and Marine. R2S provides photographic capture and three dimensional modelling of oil & gas installations, linking these images to asset management databases for major international oil operators, allowing them to improve the performance of their assets whilst providing operational efficiencies. SE Innovation, comprising Max and Co communications and design, R2S Forensic and strategic consulting delivers strategic support for companies in offshore energy, helping them to improve asset integrity, reduce costs and improve output. The Marine division offers ship management services for offshore vessels and is now considered to be non-core.
www.seaenergy-plc.com
www.r2s.co.uk
www.seasm.com