SeaEnergy Signals for ‘Significant Loss’, Secures £1 Mln Lifeline

SeaEnergy, the offshore energy services business, informed Wednesday it expects a ‘significant loss’ for 2015, caused by sever impact of sustained low oil prices on its business.

The company said it estimates a drop in revenue from continuing operations for the year ending December 31, 2015. The revenue target is set between £2.6 and £2.8 million.

In addition, SeaEnergy has now handed over operational responsibility for the ships previously under management and expects to have completed its exit from ship management by the end of the year.

The Directors of SeaEnergy anticipate a recovery in the core R2S business into 2016, as offshore field operators’ activity levels pick up, and efforts to grow the business through internationalisation and diversification start to bear fruit.

The Board has reviewed a number of options to address a shortfall in working capital resulting from the reduced R2S business levels. The options included an equity fundraising, but the Board has opted for a short term debt-based approach in order to minimise long term dilution to shareholders.

On November 24, 2015, the company signed loan agreements with Davies Newman Property and LC Capital Master Fund for each of the lenders to provide a secured facility of £500,000.

The Facilities will each be repayable on April 30, 2017 and accrue interest at 10% per annum, payable semi-annually.

“The Directors believe that, in light of the currently anticipated upturn in R2S business and other work in 2016, together with significant cost reductions in central costs (including an extension through 2016 of the voluntary salary waivers by the Directors which began in June 2015), the Facilities, in addition to the existing HSBC overdraft facility, should be sufficient for the Group’s working capital requirements for the foreseeable future,” the company said in a statement.