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SeaEnergy PLC (SEA)

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Thursday 11 September, 2014

SeaEnergy PLC

2014 Interim Results

RNS Number : 3659R
SeaEnergy PLC
11 September 2014
 



 

 

                                                                     

 

SeaEnergy PLC

("SeaEnergy" or the "Company")

 

2014 Interim Results

 

 

SeaEnergy (LSE: "SEA"), the innovative energy services group, today announces half year results for the six months ended 30 June, 2014.

 

Highlights:

 

Operational

 

·    Continuing growth in all parts of the business

·    Increasing international activity

·    Significant contract wins in Mexico, USA and UK for R2S

·    Permanent Houston office established

·    Expectation of stronger second half

·    Ship Management JV signed and three vessels under management

·    Consulting offering boosted by Max & Co and R2S Forensic after reorganisation

 

Financial

 

·    Strong revenue growth across all businesses

·    Turnover up to £3.6m (H1 2013: £2.2m)

·    Loss from continuing operations after tax reduced to £0.2m for the first six months of 2014 (H1 2013: loss of £0.6m)

·    Loss per share (basic and diluted)  0.43 pence (H1 2013: loss per share 1.10 pence)

·    Group cash balance at 30 June 2014 of £0.7m after earn-out payment of £4.3m (30 June 2013: £5.4m)

·    Group overdraft facility of £0.5m secured

 

 

 

 

Commenting on today's announcement David Sigsworth, Chairman, said:          

 

"We are delighted to report this exciting acceleration in all of the Group's activities.  Our continuing rapid growth, and particularly our international expansion, will continue to build shareholder value"

 

 

For further information contact:

 

SeaEnergy PLC

 

 

John Aldersey-Williams, Chief Executive

 

+44 1224 748480

Steven Bertram, Finance & Commercial Director

 

 

 

 

 

Investec Bank PLC (NOMAD & Broker)

 

 

David Flin, Jeremy Ellis

 

+44 207 597 4000

 

 

 

Bell Pottinger

 

 

Mark Antelme, Rollo Crichton-Stuart

 

+44 203 772 2500

 

www.seaenergy-plc.com

www.r2s.co.uk

www.seasm.com

www.lansdowneoilandgas.com

 

 

 



 

SeaEnergy PLC

 

Interim Results for the six months ended 30 June 2014

 

Chairman's Statement

 

In our Annual Report for 2013, we described our progress towards returning the Group to profitability as an energy services company.  We are therefore very pleased to report further progress towards this goal with good prospects for an overall profit for 2014.  This year the underlying themes are growth, internationalisation and partnership: growth in turnover from increased sales in all areas; internationalisation, with contract wins in Mexico and the US; and partnership, with the launch of GOSeaEnergy Ship Management Limited, our ship management joint venture with Go Marine Group ("Go").

 

Overview

Continuing progress is being made on each of the key elements of the strategy - R2S Visual Asset Management ("R2S"), Consulting and Marine - and we report on each of these in more detail in this report.  Following payment of the final instalment of the earn-out consideration for Return To Scene Limited, we announced a business reorganisation in April which has improved reporting lines, sharpened our focus on strategic targets and created scope for cross-selling opportunities. R2S has historically seen higher activity in the second half of the year and we expect this pattern to be repeated in 2014; Consulting is continuing to grow and Marine is looking forward its first full period with vessels under management.

 

In addition, it remains our plan to divest legacy assets over time as appropriate opportunities arise.

 

Financial Review

 

The first half of 2014 has seen an increased level of activity from all areas of the business, resulting in turnover of £3.6 million (2013: £2.2 million).  This generated a gross profit of £1.0 million (2013: £1.0 million as restated, reflecting R2S overheads as a cost of sale rather than at the operating expense level). This result reflects a full period of overhead costs for Marine's Ship Management business, with vessel management revenues only commencing from the start of May. Ship Management now has three vessels under management, and although a lower margin business, it is expected to generate a positive contribution in the second half. 

 

The Group reduced its first half operating loss to £155,000 (2013: £574,000) this is after reflecting non-recurring costs of £100,000 relating to the reorganisation and corporate operating expenses of £1.0 million.

 

As expected, Group cash balances reduced significantly following the settlement of the final instalment of the Return To Scene earn-out consideration and at 30 June 2014 these stood at £676,000 (2013: £5.4 million). In order to ensure that the Group can continue its growth plans we have secured a £500,000 group overdraft facility with our bankers HSBC.

 

 

R2S

R2S continues to grow as we had anticipated at the time of its acquisition.  As a part of the SeaEnergy Group, R2S is now developing a wider international presence.  During the first half of 2014, we moved into a permanent office in Houston Texas, where our local business development team is tasked with growing our customer base in the US, Canada and Mexico.  This has been rewarded by significant contract wins in the US Gulf of Mexico and in Mexico's Bay of Campeche and a number of additional opportunities have been identified in these areas and elsewhere in the Americas. The North Sea remains an important market for R2S and we were pleased to be able to extend our relationship with existing client Total E&P UK Limited until July 2018 following an extension to the current contract.

 

Further internationalisation plans for R2S are in hand, with the objective of establishing a new centre of operations in South East Asia during 2014/15.  We have formalised an assessment process to ensure that entry into new country markets is robustly assessed from all angles and then undertaken with due attention to the health, safety and wellbeing of our personnel. Using this process, we are currently grading potential opportunities and developing detailed strategies.

 

In the six months to 30 June 2014, R2S Visual Asset Management generated a contribution to gross profit of £1.0 million.  R2S revenue has historically shown a strong seasonality, with the second half of the year being significantly stronger than the first, as summer maintenance campaigns come to an end, bed space for R2S technicians becomes available, and budgets are allocated to R2S capture of assets.  We expect this pattern to continue in 2014 as R2S has already obtained client commitments for significantly more work than in the first half.  Year on year growth in R2S revenues is expected to continue strongly.

 

R2S continues with technical innovation of its products and services, and is working with clients to enhance their use of the R2S imagery already captured. We plan to engage an R2S team to complete a photographic capture of one of the vessels under our management. The resulting model will be used both to enhance our Ship Management offering and as a marketing tool for our shipping JV partner and other vessel operators.

 

 

 

Consulting

Following the reorganisation, the Consulting division is building on its expertise in the through-life management of offshore energy, shipping and marine assets by integrating its consulting activities with Max and Co.'s digital media expertise and the forensic use of digital imagery which were previously operating within Return To Scene Limited.

 

The Consulting division has grown, with existing contracts increasing in scope and duration and new contracts being won and tendered.  SeaEnergy's expertise is assisting global clients with asset integrity strategies, and the scope of engagement is now increasing to include management of change, as well as more technical assistance with the development of asset integrity management systems.

 

The Scottish Government has recently published SeaEnergy's report on the potential for converting and using fishing vessels in support of offshore wind farm activities, adding to the reputation and visibility of the Consulting practice.

 

Max and Co. has continued to deliver high quality work for its client base, both in the UK and further afield, and is identifying opportunities where its skills may be integrated with our other consulting offerings to deliver a higher value service to new and existing clients. SeaEnergy's Consulting activities are already growing in the second half of 2014.

 

Marine

In June we announced the launch of GOSeaEnergy Ship Management Limited - a ship management joint venture with Go.  This JV is expected to commence trading in the second half of 2014 and meantime the revenue from the three vessels under management is flowing 100% through our subsidiary SeaEnergy Ship Management ("SEASM").

 

SeaEnergy is extending its relationship with Go through a second joint venture, GOSeaEnergy Operations Limited.  This second venture will bid SeaEnergy's innovative offshore wind farm Service Operations Vessel designs into the increasing number of tendering opportunities, combining Go's financial capacity with SeaEnergy's respected vessel designs to offer cost effective wind farm operations and maintenance solutions.

 

In addition to the alliance with Go, SeaEnergy is now seeking opportunities to earn broking fees and associated ship management fees from opportunities to utilise existing vessels for "walk-to-work" inspection and maintenance support in offshore wind and increasingly for oil and gas operations.

 

SEASM has achieved a successful start-up, and is already developing a very strong reputation for performance and commitment, both with vessel owners and their charter clients.

 

Synergies

On 16 April 2014, we announced a business reorganisation focussed on optimising the development of the fast-growing R2S division and boosting operational synergies within the Group.  There was a non-recurring upfront cost associated with that reorganisation of £100,000, which has impacted the first half results, however, we are confident that the resulting benefits to the business will be worth much more and indeed expect to recoup those initial costs through future cost savings inside the first twelve months.

 

The reorganisation is already showing benefits through a Group-wide approach to business development which is exposing Max and Co. to higher value opportunities, creating a potential new business stream for Forensic in offshore, marine and industrial incident investigation and strengthening R2S' focus on its core business of photographic capture and modelling.

 

The business is continuing to build its reputation as an attractive place to work, and this is helping us to attract high quality staff for our increasingly international business. 

 

Legacy Assets

The decline in the market value of Lansdowne Oil & Gas plc is obviously disappointing, although we remain optimistic that it will secure farm-out deals across its portfolio, including the Barryroe discovery and its exploration prospects.  It remains our plan to realise the value of our legacy oil & gas assets over time and to return a proportion of that realised value to shareholders.  The current market value of our holding in Lansdowne Oil & Gas plc is c. £[4.5] million and has a historic cost net book value of £5.4 million.

 

Health, Safety and the Environment

The health and safety of our employees, contractors, clients and stakeholders is critical to our success, and we are pleased to report that the Group has had no reportable incidents in the six months to 30 June 2014. SeaEnergy continues to monitor and assess risks actively, and to take steps to ensure that our HSE exposure remains as low as possible.

 

Outlook

With the Group strategy firmly set and all three businesses now demonstrating their clear potential, the Board looks to the future with considerable confidence. SeaEnergy expects to achieve profitability in the near term and that the trend of positive updates from across all business segments will continue in the second half of 2014 and beyond. 

 

Looking further ahead, SeaEnergy is firmly on track to become a successful international energy services business of scale. We will realise the clear opportunities we have identified for the growth of R2S in the Americas and Asia, and build on them to accelerate value creation in Marine and Consulting. We are increasingly realising synergies and driving revenue growth across the business to grow shareholder value.

 

David Sigsworth

Chairman



 

Consolidated Interim Balance Sheet

 

 

 

30 June

31 December

  30 June

 

 

2014

(unaudited)

2013

(audited)

2013

(unaudited)

 

Note

£'000

£'000

£'000

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Goodwill and other intangible assets

4

11,953

11,943

11,950

Property, plant & equipment

 

266

254

225

Investments in associates

 

5,373

5,461

5,582

 

 

17,592

17,658

17,757

Current assets

 

 

 

 

Trade and other receivables

 

1,431

1,615

1,031

Deferred income tax asset

 

44

44

-

Cash and cash equivalents

 

676

4,677

5,406

 

 

2,151

6,336

6,437

 

 

 

 

 

Total assets

 

19,743

23,994

24,194


 

 

 

 

LIABILITIES

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

5

(1,302)

(5,644)

(5,721)

Provisions

 

(11)

(10)

(9)

 

 

(1,313)

(5,654)

(5,730)

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

Deferred income tax liabilities

 

(448)

(448)

(402)

Other non-current liabilities

 

(4)

(6)

(8)

 

 

(452)

(454)

(410)

 

 

 

 

 

Total liabilities

 

(1,765)

(6,108)

(6,140)

 

 

 

 

 

Net assets

 

17,978

17,886

18,054

 

 

 

 

 

EQUITY

 

 

 

 

Ordinary shares

 

5,637

5,546

5,546

Treasury shares

 

(500)

(500)

(500)

Share premium

 

1,225

1,000

1,000

Redemption reserve

 

1,920

1,920

1,920

Special reserve

 

1,404

1,404

1,404

Retained earnings

 

8,292

8,516

8,684

Total equity

 

17,978

17,886

18,054

 

 

 

 

 

 

 

 

 



 

 

Consolidated Interim Statement of Comprehensive Income

 

 

 

Half-year ended 30 June

 

 

2014

(unaudited)

2013

(unaudited)

 

 

 

restated*

 

Note

£'000

£'000

Continuing operations

 

 

 

Turnover

 

3,566

2,152

Rental income

 

49

45

Revenue

 

3,615

2,197

Cost of sales

 

(2,655)

(1,170)

Gross profit

 

960

1,027

Operating expenses

 

(1,015)

(1,290)

Non-recurring expenses

 

(100)

(311)

Operating loss

 

(155)

(574)

 

 

 

 

Finance income

 

7

34

Finance expense

 

(2)

(1)

Finance income - net

 

5

33

 

 

 

 

Share of loss of associate

 

(125)

(82)

Other movements in respect of associates

 

37

11

Loss before taxation

 

(238)

(612)

Taxation

6

-

-

Loss for the financial period

 

(238)

(612)

 

 

 

 

Loss  per share

 

 

 

Basic and diluted

2

(0.43)p

(1.10)p

 

 

 

 

 

 

 

 

  

 

* The comparative Comprehensive Income statement for 2013 has been restated to reflect the cost  reclassification of R2S overhead now treated as cost of sales which is consistent with the half year ended 30 June 2014 and the Annual report for 2013.

 

Consolidated Interim Statement of Cash Flows

 

 

 

       Half-year ended 30 June

 

 

2014

(unaudited)

2013

(unaudited)

 

Note

£'000

£'000

 

Cash flows generated by / (used in) operating activities:

7

417

(352)

 

 

 

 

Cash flows from investing activities:

 

 

 

Interest received

 

7

11

Disposal of subsidiary undertaking

 

-

850

Acquisition of intangible assets

 

(83)

(54)

Acquisition of property, plant and equipment

 

(54)

(44)

Acquisition of subsidiary - deferred consideration

8

(4,284)

(500)

Net cash (used in) / generated by investing activities

 

(3,997)

263

 

 

 

 

Cash flows from financing activities:

 

 

 

Payment of finance lease liabilities

 

(2)

(5)

Interest paid

 

-

(1)

Net cash used in financing activities

 

(2)

(6)

 

 

 

 

Effect of exchange rate fluctuations on cash held

 

(2)

-

 

 

 

 

Net decrease in cash and cash equivalents

 

 (4,001)

(95)

Cash and cash equivalents at start of period

 

4,677

5,501

Cash and cash equivalents at end of period

 

676

5,406

 

Consolidated Statement of Changes in Equity

 

 











 

 

 

 

Note

Share

capital

 

£'000

 

 

Treasury

shares

 

£'000

Share   premium

 

£'000

 

 

Redemption

reserve

 

£'000

Special   reserve

 

£'000

Retained earnings

 

£'000

 

Total equity

 

£'000










At 1 January 2013


5,546

(500)

1,000

1,920

1,404

9,280

18,650

Loss for the financial year


-

-

-

-

-

(806)

(806)

Share based payment transactions


-

 

-

-

 

-

-

42

42

At 31 December 2013


5,546

(500)

1,000

1,920

1,404

8,516

17,886



















At 1 January 2014


5,546

(500)

1,000

1,920

1,404

8,516

17,886

Loss for the period


-

-

-

-

-

(238)

(238)

Share based payments transactions

 

 

-

 

-

-

 

-

-

14

14

Issue of new shares


91

-

225

-

-

-

316

At 30 June 2014


5,637

(500)

1,225

1,920

1,404

8,292

17,978



















At 1 January 2013


5,546

(500)

1,000

1,920

1,404

9,280

18,650

Loss for the period


-

-

-

-

-

(612)

(612)

Share based payment transactions

 

 

-

 

-

-

 

-

-

16

16

At 30 June 2013


5,546

(500)

1,000

1,920

1,404

8,684

18,054










 

Notes to the Interim Statement

 

1. Basis of Presentation

 

Accounting Policies

 

The interim financial information for the six months ended 30 June 2014 has been prepared on the basis of the accounting policies which will be adopted in the 2014 Annual Report and Accounts, and IAS 34, "Interim Financial Reporting" as adopted by the European Union.

 

The interim financial information does not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The results for the six months to 30 June 2014 and the comparative results for six months to 30 June 2013 are unaudited.  The comparative figures for the year ended 31 December 2013 do not constitute the statutory financial statements for that year. The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2013, which have been prepared in accordance with IFRSs as adopted by the European Union. Those financial statements have been delivered to the Registrar of Companies and include the auditor's report which was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.   

 

Going Concern

 

The Directors have prepared the interim financial information on the going concern basis which assumes that the Group and Company and its subsidiaries will continue in operational existence for the foreseeable future.

 

Principal Risks and Uncertainties

 

The management of the business and the execution of the Group's strategy are subject to a number of risks. Risks are reviewed by the Board and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the Group. Further details of the Group's risk profile analysis can be found on pages 21 and 22 of our 2013 Annual Report, available from the website: www.seaenergy-plc.com

 

2. Loss per Ordinary Share

 

The calculation of the basic loss per share attributable to equity holders of the Company is based on the loss for the period of £0.2 million (6 months to 30 June 2013: £0.6 million) and 55,839,568 (6 months to 30 June 2013: 55,459,383) ordinary shares, being the weighted average number of shares in issue during the period. 

 

For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. At the reporting date the Company had one class of potential ordinary shares; share options. As a loss was recorded in the current period, the issue of potential ordinary shares would have been anti-dilutive.

                                                                                                                                              

                                                                                                                                    Half year ended 30 June

     2014               2013

                                                                                                                                            Pence per share

 

Loss per share - basic and diluted

        (0.43)

(1.10)

 

 

 

3. Segmental Reporting

 

 

 

 

 

 

 

 

Group

 

R2S

£'000

Consulting

£'000

 

Marine

£'000

Corporate

£'000

Group

£'000

2014

 

 

 

 

 

Turnover

1,740

722

1,104

-

3,566

Rental Income

-

-

-

49

49

Revenue

 

 

 

 

3,615

Non-recurring expenses

(98)

-

-

(2)

(100)

Operating profit/(loss)

863

151

(133)

(936)

(55)

 

 

 

 

 

(155)

Finance income net

 

 

 

 

5

Share of associates ( oil & gas)

 

 

 

 

(88)

Taxation

 

 

 

 

-

Loss for the period

 

 

 

 

(238)

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

 

 

 

Turnover

1,566

531

55

-

2,152

Rental Income

-

-

-

45

45

Revenue

 

 

 

 

2,197

Non-recurring expenses

-

-

-

(311)

(311)

Operating profit/(loss)

791

107

(11)

(1,150)

(263)

 

 

 

 

 

(574)

Finance income net

 

 

 

 

33

Share of associates ( oil & gas)

 

 

 

 

(71)

Taxation

 

 

 

 

-

Loss for the period

 

 

 

 

(612)







 

 

The Group's revenues and operating results of the three operating segments are highlighted in the above table. The Chief Operating Decision Maker (the Board) monitors the operating results of its operating segments separately for the purposes of making decisions and performance assessment.

 

 

4. Goodwill and Other Intangible Assets

 

 

 

 

 

 

 

 

 

 

Note

Goodwill

£'000

 

Oil & Gas

£'000

Other

£'000

Total

£'000

 

 

 

 

 

 

At 1 January 2013

 

9,785

1,790

388

11,963

Additions

 

-

-

133

133

Amortisation

 

-

-

(153)

(153)

At 31 December 2013

 

9,785

1,790

368

11,943

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2014

 

9,785

1,790

368

11,943

Additions

 

-

-

83

83

Amortisation

 

-

-

(73)

(73)

At 30 June 2014

 

9,785

1,790

378

11,953

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2013

 

9,785

1,790

375

11,950







 

 

5. Trade and Other Payables

 

 

30 June

31 December

  30 June

 

2014

(unaudited)

2013

(audited)

2013

(unaudited)

 

£'000

£'000

£'000

Trade payables

575

192

196

Earn-out consideration (note 8)

-

4,600

4,600

Other taxes and social security

249

258

217

Corporation tax

-

-

13

Accruals

337

446

531

Amounts due under finance leases

4

4

29

Other payables

137

144

135

 

1,302

5,644

5,721

 

 

6. Taxation

 

It is anticipated that for the period, the Corporation tax payable by the Group's subsidiaries will be fully absorbed by group relief and therefore no provision for tax payable has been made.

 

7. Reconciliation of Loss for the Period to Net Cash Generated by / (Used in) Operating Activities

 

 

 

Half year ended 30 June

 

 

2014

2013

 

Note

£'000

£'000

 

 

 

 

Loss for period from continuing operations

 

(238)

(612)

 

 

 

 

Adjustments for:

 

 

 

Depreciation of property, plant and equipment

 

42

37

Amortisation of intangible assets

 

73

67

Share of loss from associates

 

125

82

Other movements relating to associates

 

(37)

(11)

Equity settled share-based payment transactions

 

14

16

Operating cash flows before movements in working capital

 

(21)

(421)

 

 

 

 

Change in trade and other receivables

 

182

(213)

Change in trade and other payables

 

260

314

Change in provisions

 

1

1

Cash outflow generated by / (used in) operations

 

422

(319)

Net finance income

 

(5)

(33)

Net cash generated by / (used in) continuing operating activities

 

417

(352)

 

 

 

 

 

8. Business Combination

 

 Acquisition of Return to Scene Limited ("R2S")

 

On 23 August 2012, the Group acquired the entire issued share capital of R2S an unlisted company based in Aberdeen and specialising in Visual Asset Management. The Group acquired R2S in line with its strategy of building and acquiring innovative and complementary energy services businesses.

 

Purchase consideration

£'000

Initial cash consideration - paid August 2012

5,000

Deferred cash consideration - paid March 2013

500

Earn-out consideration - paid April 2014

4,600

Total consideration

10,100



 

Earn-out consideration

Additional Earn-out consideration totalling £4.6 million became payable in April 2014 as the R2S EBITDA for the year ended February 2014 exceeded the target of £2.5 million. The £4.6 million was settled in April 2014 by the payment of £4.3 million of cash and the issue of 905,440 new 10p ordinary shares in SeaEnergy PLC at an issue price of 34.9p being the average mid-market price for the 5 days prior to the issue. No further amounts are payable and the acquisition Earn-out is complete.

 

 

9. Related Party Transactions

 

(a) Directors

 

In addition to his role as a Non-Executive Director, D K Laing is a partner in Ledingham Chalmers, legal advisers to the Company. In the six months to 30 June 2014 the Company incurred legal fees of £300 (6 months to 30 June 2013: £nil) for services provided by Ledingham Chalmers.

 

(b) Directors of Return To Scene Limited

 

In addition to her role as Director of wholly owned subsidiary R2S, S Khan is a partner in Nathan Maknight, Chartered Accountants, R2S incurred accountancy fees of £7,700 in the six months to 30 June 2014 (6 months to 30 June 2013: £7,700) for services provided by Nathan Maknight,

 

(c) Associates

 

During the period to 30 June 2014 the Group made payments for administrative expenses on behalf of its associate company Mesopotamia Petroleum Company Limited ("MPC"). The balance owed by MPC to the Group as at 30 June 2014 is £450,000 (30 June 2013: £415,000). In January 2011 the Company, along with all other MPC creditors, agreed to defer the amount owed by MPC until January 2013. The Company has subsequently extended the deferred period. No interest is charged and no guarantee has been given. The Company has previously made full provision against this debt.

 

 

10. Post Balance Sheet Events

 

(a) Overdraft Facility

 

A Group overdraft facility of £500,000 was secured in July 2014 from our bankers, HSBC Bank plc. As security for this facility a number of bonds, floating charges and debentures have been granted over certain assets of the Group. This facility will help ensure that the Group is able to respond quickly to growth and expansion opportunities as they arise.

 

                                                                                                                                                           

11. Contingent Liability

 

Under the terms of a joint venture ("JV") agreement dated 26 February 2009 between the Iraqi Drilling Company ("IDC") and the Company's associate Mesopotamia Petroleum Company Limited ("MPC"), MPC was required to confirm its share of the initial JV funding by a prescribed date and failure to do so was to result in liability for a penalty of US $2.2 million. MPC's liability for this penalty was guaranteed jointly and severally by the Company, another MPC shareholder and an associate of that shareholder.

 

In July 2009 IDC unilaterally purported to terminate the JV while MPC argued that it was entitled to an extension of the date by which its share of JV funding was to be confirmed.

 

In October 2011 IDC commenced an action against MPC in the Specialised Commercial Civil Court in Baghdad claiming payment of the penalty sum. A Power of Attorney has been provided to local Counsel to allow them to manage the Court proceedings as appropriate. On 28 August 2012 the Court upheld a ruling against MPC that it is liable to pay the penalty. MPC has appealed against this decision and its Directors are reviewing the Court's latest decision and the options available to it. As the date of the Interim Report, no further Court rulings have been announced since August 2012 and it is unclear when the next ruling will be made.

 

 

12. Copies of the Interim Report

 

Copies of the interim report can be obtained from the Company Secretary, SeaEnergy PLC, Britannia House, Endeavour Drive, Arnhall Business Park, Westhill, Aberdeenshire, AB32 6UF and from the Company's website www.seaenergy-plc.com.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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