25th Nov 2015 09:48
LONDON (Alliance News) - Offshore energy services business SeaEnergy PLC Wednesday said it expects a "significant loss" for 2015, hit by sustained low oil prices, and said it expects to complete its exit from ship management by the end of the year.
The company expects a recovery in its core R2S business into 2016, and having reviewed a number of options to address a shortfall in working capital, said it has agreed a working capital funding package under which it can draw up to GBP1.0 million over the next year.
SeaEnergy now expects revenue for 2015 to be between GBP2.6 million and GBP2.8 million, down from GBP7.3 million in 2014, as a result of the weakness in the oil price leading to a reduction in oil company operating budgets.
It expects recovery in the R2S business in 2016 as offshore field operators' activity levels pick up, and in the UK it recently won a number of projects with a total value of GBP150,000.
The company believes that, in light of this expected turnaround, along with significant cost reductions, including an extension of voluntary salary waivers by directors, that the new funding package along with its existing overdraft facility with HSBC Bank PLC should be sufficient for its working capital requirements for the "foreseeable future".
Shares in SeaEnergy were down 6.7% at 4.20 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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