It looks like the dissatisfaction of shareholders has been noticed |
 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" |
The Irish have an expression that just about does this justice:
"GUBU".
Words fail me. |
Ouch yet more bad news , figures below 2014 desperate cost cuttings although they fail to say what it will cost them in redundancies etc . Usually ends up costing more than the savings initially so another hit to the fragile bank balance |
I doubt there will be a cash takeover, but I could be wrong. Best hope here is for success at Middleton. That would push the share price higher and maybe allow SEA to sell a %age? |
I have had a punt on LOGP, SlagChops!! I was buying LOGP earlier this month sub 5p and sub 6p. I've had a much bigger punt on LOGP than SEA (though I only ever gamble/bet small amounts of money).
The SEA share price has been well oversold. I see scope for a decent recovery in the share price in the short term.
PS. It would be very beneficial for SEA if LOGP was taken over for cash. It would help SEA's cash position no end. Will it happen? No idea, but LOGP are 10 weeks into a strategic review. One of the many options is a takeover of LOGP. |
Wouldn't you be better off having a punt direct with LOGP? I don't recall the market ever really including LOGP value in the SEA share price |
Worth a punt at todays price according to the chart indicators.
free stock charts from uk.advfn.com |
free stock charts from uk.advfn.com |
Could be worth a punt at the current price. Things appear to be picking up at LOGP.
free stock charts from uk.advfn.com |
Right!
LOGP now 161,293,795 shares after the recent placing of 20,753,636 shares.
Slowly, slowly!
Edit. Well done Korki, SNAP!!! |
Hey Phil, look at the LOGP RNS dated 10th March 2015.
After the Placing 161,293,795 shares in issue. So the 18.72% SEA Holding is based on that figure. I THINK.........Too late to fire up me calculator.
No doubt Jack will correct me if I'm wrong.
Where do I send my Fee Note???? |
Phil, I think the shares in issue for logp went up 15% from that figure to about 160mil |
So what does "SeaEnergy diluted to 18.72%" mean in the annual report link above?
18.72% of what?
30 odd mill out of the 140.54mill LOGP shares is 21.48% (not 18.72%)
Edit - Ahh, just answered my own question -
Yup, we do still have 30 odd mill shares - back to the calculator!!! Sorry for confusion caused! |
Apologies Jack, for once you are correct. SEA own 30,194,193 shares in LOGP.
Thus the calculation becomes: 30,194,193 shares (assuming share price of 10p)
equals 30,194,193 x 0.125p = £ 37,742.74 over the 2014 year end "book" value.
Sorry I was £5k out............The SEA website is not very user friendly! |
As far as I am aware, SEA own something like 30.19mln LOGP shares, and have done for a few years. I dont think they have sold any, and their percentage only changed as they didn't partake in the placing.
Petronas bringing forward the drill may suggest the surveys were encouraging, or else why bother? |
Hi Phil, if LOGP shares were trading at 10p, that would represent 0.125p above the current "written down value" on our books. Thus the "surplus" is 26.31 million shares x 0.125p = £ 32,887.50 ABOVE current book value.
That ties in with your numbers, I think. Just a slightly different way to look at it. |
Thanks Korki - at last found the June AGM which has the numbers!!!
SEA now own 18.72% of LOGP = 26.31mill shares = £1.9mill after today's rise to a bid of 7.25p.
So - every 1p rise in LOGP equates to +£263,090 to SEA.
10p LOGP = £2.63mill. to SEA
15p LOGP = £3.9mill.
20p LOGP = £5.26mill.
40p LOGP = £10.52mill.
Does that sound right?! |
Hi Phil, after the 2014 year end the "carrying value" of each LOGP share was "reduced" to 9.875p. So we need to achieve a hefty increase in the LOGP share price before we will see any "write back" of the impairment taken.
As things stand at present we are looking at "further" impairments being required. A merger between LOGP and FAST could be a good strategic fit imho.
Although that would not release any cash.
An 80% reduction in the entire remuneration package for our beloved Board, would solve that problem and is long overdue. |
Could somebody please help me out?
I thought a month or 3 ago SEA did a write down of about £2-3mill on their LOGP holding, now valuing them at circa 7.5p (I think, b@@@ered if I can find the exact details though). Well, now that LOGP has "surged" back to this level, is it reasonable to assume a price of anything over 7.5p will "help" the SEA SP?
In theory it should I guess, and what is the current value to SEA given the recent dilution as well? - i.e. for every +1p in LOGP what "should" the effect be on the SEA share price
(could work it out myself except I can't locate the exact numbers to crunch!) |
Late 200k buy just gone through! |
I have written a letter to Steven Remp. It shall be interesting to see the response (if any). |
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