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SeaEnergy still significantly undervalued, says Edison

According to Edison Investment Research, investors continue to overlook the value of SeaEnergy’s (LON:SEA) assets including its stake in Celtic Sea explorer Lansdowne Oil & Gas (LON:LOGP).

In a note from the research house, analyst Graeme Moyse said the market is still valuing SeaEnergy at a significant discount to the combined value of its net cash and its 24.68 percent stake in LOGP, which he estimates is worth 15 pence.

Together with the cash reserves of 32 pence per share, it gives SeaEnergy a total value of 47 pence per share compared with Wednesday’s closing price of 30.13 pence.

The note followed the company’s splitting of the roles of chief executive and chairman. Back in January, SeaEnergy appointed David Sigsworth as chairman and then named John Aldersey-Williams its new chief executive.

In the meantime, SeaEnergy is seeking shareholder approval to return £69 million, or 10 pence per share to investors following the sale of its subsidiary SERL in June last year, which the analyst said would still leave it with a comfortable cash position.

The Aberdeen- based company has said its new strategy is on building and buying complementary energy service businesses.

“A proposed return to shareholders, the appointment of a new CEO, and proposals to address other corporate governance issues indicate that SeaEnergy is moving in the right direction,” said Moyse.

“The onus will now be on the successful deployment of remaining cash and the disposal of the legacy oil and gas assets to close the gap to the asset value.”


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