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29/09/2011

SeaEnergy Exec Chairman says the company has a very exciting story

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Additional Information
Market: AIM
Sector: Cleantech and Renewable Energy
EPIC: SEA
Latest Price: 28.50p  (-0.87% Descending)
52-week High: 71.50p
52-week Low: 23.50p
Market Cap: 19.70M
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SeaEnergy PLC
www.seaenergyrenewables.com

SeaEnergy PLC (formerly Ramco Energy plc) is a Scottish public limited company headquartered in Aberdeen, Scotland.

In September 2009 the board announced the intention to focus the group on renewable energy, specifically offshore wind. SeaEnergy in mid-2010 specified it would concentrate on marine services for the offshore wind power industry, following an assessment of the equity markets, investor sentiment and the funding environment. 

It is in the process of selling its 80%-held renewable energy operating subsidiary SeaEnergy Renewables Limited which currently has interests in three offshore wind farm projects in development, totalling 3,125GW of capacity.

Full SeaEnergy PLC profile here
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SeaEnergy valuation too conservative as stock trades below cash value - Edison

2nd Sep 2011, 10:12 am by Andre Lamberti The research house said the group is trading below the value of its cash and existing oil and gas assets and its share price fails to reflect any of the potential growth in its marine services business or upside in its oil assets

Edison Investment Research believes the market is overly cautious on SeaEnergy (LON:SEA). The research house said the group is trading below the value of its cash and existing oil and gas assets and its share price fails to reflect any of the potential growth in its marine services business or upside in its oil assets.

Since completion of the sale of its offshore windpark arm, SeaEnergy Renewables Ltd, in June this year, the group is now focused on its offshore renewables marine services business SeaEnergy Marine. It also recently upped its stake in Lansdowne Oil & Gas (LON:LOGP) from 23.03 percent to 24.68 percent.

Lansdowne owns 20 percent of the Barryroe field, which is in the North Celtic Basin, while operator Providence Resources (LON:PVR) has 50 percent. The remainder is held by San Leon Energy (LON:SLE).

Edison said the market is valuing SeaEnergy at less than the cash on the balance sheet of around 34 pence a share and is also ignoring the value of its holding in Lansdowne.  “This appears too conservative even after taking account of potential cash burn over the next two years of around £3 million or  5 pence per share as it fails to reflect the opportunity for value creation in the marine service and oil and gas businesses,” it said in a note.

Edison estimates there will be more than 8,600 offshore turbines in Europe by 2020. Each turbine will need to be serviced and repaired and, with new turbines increasingly located further from the shore, current methods of carrying out maintenance will prove inadequate.

This presents a significant business opportunity for SeaEnergy to deploy its new wind farm support vessel technology. The research house believes SeaEnergy’s design offers significant advantages compared to existing day boats, providing an enhanced capability of operating in rough seas and improved access to turbines. The significant increase in productive hours facilitated by SeaEnergy’s vessel will considerably improve the economics of turbine repair.

Appraisal drilling this autumn by Lansdowne in the North Celtic Sea Basin could also, if successful, provide additional near-term upside for the shares, Edison said.

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