Bosses at offshore energy services firm SeaEnergy have agreed to take a pay cut as part of a series of measures to address the downturn in oil and gas activity.

SeaEnergy said it is taking “active measures” to reduce costs after revealing it will report a first half loss.

The group’s main business is R2S, which collates 360 degree images of oil rigs that makes repair and maintenance easier.

Not surprisingly, it has been hit by the downturn in the oil industry.

Chief executive John Aldersey-Williams has waived 25% of his salary and pension entitlement for the second half of this year.

The company's other directors are waiving 20%.

SeaEnergy said it would result in cost savings of £75,500.

In an update to trading SeaEnergy said turnover for the six months to June 30 will be in the order of £2.7mln compared with £3.1mln for the same period last year.

It expects activity levels for R2S to be higher in the second-half, adding it “expects to achieve operating performance before any non-recurring items broadly comparable with 2014”.

Against a tough industry backdrop it announced a raft of measured aimed at keeping SeaEnergy on an even keel, including an exit from marine activities.

SeaEnergy said it is in the early stages of discussions regarding the future of the ship management operation, which if successful “would see that team and associated overheads transfer to a new owner”.

A programme of cuts will see central costs fall to £1.75mln this year and £1.5mln next.

As part of the programme chief executive John Aldersey-Williams has agreed to waive 25% of his pay and pension entitlements: other directors have agreed a 20% cut. The company said it won’t replace the operations director.

Finally, SeaEnergy told investors it is looking to develop other revenue streams for R2S outside the oil and gas sector.

Chairman David Sigsworth said: "The company is taking active measures to address the current levels of activity in its main markets by reducing central costs and withdrawing capital from non-core areas.

“Financial discipline and a continued drive to realise the pipeline of opportunities will continue to be the focus of the business.

“As with 2014, the results for the second half will be dependent on winning new business and converting the existing pipeline of opportunities.

“Operators realise significant operating efficiencies and cost reductions through using R2S and this remains the cornerstone of our offer."

Source: www.proactiveinvestors.co.u

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