Scotland business

Aberdeen firm SeaEnergy warns it may have to stop trading

R2S in operation Image copyright Seaenergy

An Aberdeen firm which supplies specialist services to the oil and gas industry has warned that it is running out of cash.

SeaEnergy issued a statement to the stock exchange to say it is making losses, and trying to sell its assets.

It warned that if it cannot find a deal, it may not be able to keep trading beyond May.

The share price fell more than half following the news, but ended Friday 45% down on the day.

It had already fallen more than 90% in a year - from 30p a year ago to 2.24p at the start of Friday trading.

SeaEnergy was transformed from the oil explorer Ramco, and sought to find a niche in offshore renewable energy.

'Trading conditions deteriorated'

After being forced to change tack due to a lack of funding for its ambitious wind farm plans, the Westhill-based company has been selling specialist software and specialist shipping technology to the oil and gas industry.

It has also been seeking to diversify into other sectors.

In a trading update, SeaEnergy said progress towards profitability was good until the oil price started falling, in late 2014.

Clients cancelled or postponed orders. There were signs of improvement towards the end of last year, as budgets for 2016 were finalised. "But trading conditions deteriorated further," it has reported.

Costs have been cut, and Sea Energy has given up its ship management role.

"The loan facilities announced in November 2015, which were intended to bridge the gap to improved trading conditions, have proved to be insufficient and the company's cash position is becoming constrained," the company said in its statement.

"Any short term improvement in performance would require a rapid upturn in the oil and gas market."

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