UK: SeaEnergy Announces 2011 Results
SeaEnergy PLC announces its audited results for the year ended 31 December 2011.
The clear financial highlight of 2011 was the conclusion of the sale of SERL to Repsol Nuevas Energias UK Limited. This resulted in the Group recording a profit of £25.3 million for the financial year compared with a loss of £5.7 million in 2010.
Total operating expenses increased by 19% from £3.1 million in 2010 to £3.7 million in 2011, due mainly to continuing development work on the operations and maintenance vessel and other aspects of the new energy services business.
Following the SERL sale, the Balance Sheet has strengthened considerably, with Group net assets now totalling £27.6 million at 31 December 2011 (2010: £1.3 million).
Accordingly, your Board is delighted to be able to recommend a distribution to shareholders of 10p per share, subject to shareholder approval. The Company is working with its advisers to determine how best to structure this return of value. Details will be set out in a separate Circular as soon as they have been finalised.
The proposed return of value will enable shareholders to participate directly in the value created from the sale of SERL, while the Company retains sufficient capital in the business to allow it to pursue the services strategy and a balance of distributable reserves which will make possible further distribution of value as the value of the legacy oil assets is realised.
Your Company has significantly refocused its strategy since the disposal of SERL.
The strategy is to build an innovative energy services business with three principal aspects: the provision of operations & maintenance (O&M) service vessels from which to deliver technicians and services to offshore
wind farms and other work sites, acquisitions of existing profitable services businesses which have the potential to add value synergistically, and the organic development of additional business services for the energy industry. These three aspects of our strategy are tied together by our unique heritage, which combines oil & gas and renewables experience and expertise, putting SeaEnergy in a distinctive position to apply the best experience from each sector for the benefit of both.
SeaEnergy has an established reputation for innovation in problem solving in the area of offshore wind farm access and O&M support, and has been developing additional concepts around optimizing manufacture, installation and commissioning of wind farms which are expected to give rise to further business opportunities over time.
Operations and Maintenance Support Vessels
Over the past two years, SeaEnergy has developed an innovative vessel design and concept of operations which offers a much higher level of safe access to offshore wind turbines than is currently achievable with small workboats or other access methods. Our vessel design has been validated by Det Norske Veritas, the Norwegian ship classification society, which has used the SeaEnergy design as the basis for a Class Notation (a defined and accepted technical definition) for offshore wind farm support vessels. The design and concept were also commended in the Carbon Trust’s recent Offshore Wind Accelerator – Access competition, and its further development is attracting funding support from Scottish Enterprise. This support, together with keen interest among potential customers, including wind farm developers and wind turbine manufacturers, gives us confidence that the SeaEnergy design and concept of operations offer clear economic, performance, staff morale and safety advantages over existing access concepts.
David Sigsworth, Chairman, said:
“2011 was a notable year for SeaEnergy as it realised considerable value by selling SERL – a significant proportion of which is to be returned to shareholders. We have now refocused the strategy to build a broad energy services business, drawing on our combined renewables and oil & gas heritage. We are continuing to pursue opportunities for the supply of specialist
vessels and associated services in operations and maintenance for offshore wind, as well as the acquisition of complementary businesses and the in-house development of additional services. At the same time, we continue to manage the value of our legacy investments. SeaEnergy is at an exciting stage in its development, and looks forward to updating the market further on our continuing progress.”
SeaEnergy’s newly refocused strategy is to develop a group of innovative energy service businesses which build durable, value-adding and profitable relationships with clients, thereby generating sustainable and growing returns for shareholders. This strategy is appropriate to SeaEnergy’s resources, consistent with our vision and values, and both attractive and deliverable.
Offshore WIND staff, May 04, 2012