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SeaEnergy expects to move into profit

Energy services group SeaEnergy cut losses by two-thirds last year and says it will move into profit this year.

The Aberdeen-based successor to the Ramco business, which like Ramco is reinvesting the sale proceeds of one successful venture into others, saw its shares touch a three-year high of 41.5p last week, ahead of yesterday's 2013 results.

They fell back 10.4% to 35.62p, valuing SeaEnergy at just under £20m.

Chairman David Sigsworth said directors believed that "the recent strengthening of the share price reflects a growing understanding and appreciation among the investment community of our energy services strategy".

Mr Sigsworth confirmed that the 2012 acquisition of imaging business R2S had more than met its earn-out target, and that the maximum £4.6m would be paid out this month.

He said the group had established a ship management business and won new and extended contracts in consulting.

The loss for the year was cut from £2.4m in 2012 to £800,000, narrowing to only £200,000 in the second half, despite board restructuring costs of £311,000 and the ship management start-up losses of £222,000.

Revenues rose from £2.1m in the first half to £3m in the second.

Operating expenses were cut from £3.1m to £2.2m, and the loss per share came down from 3.82p to 1.45p. Cash reduced from £5.5m to £4.7m at the year end on December 31.

Mr Sigsworth said: "The earn-out of R2S demonstrates the value this important element of the business has delivered and we are pleased to have seen the company grow in line with strategy, here in the UK and internationally.

"We look forward to 2014, which is set to see us move into profitability."

The group remained "optimistic" about a recovery in value of its 21.5% stake in Lansdowne Oil & Gas, where shares have crashed from 48p a year ago to under 15p.

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