Fugro has struck a deal to sell “certain assets and the related business” of its Seabed Geosolutions subsidiary for $16 million to PXGEO Seismic Services.
The transaction is expected to be completed mid-2021 and includes Seabed’s ocean bottom node (OBN) inventory, handling equipment, related technology and order backlog.
In addition, a “significant number” of staff members will transfer to PXGEO.
“The exact number will depend on a further analysis of the needs of the business,” Fugro said.
The cash proceeds will cover anticipated restructuring costs and other cash liabilities related to wind down of the remaining parts of Seabed Geosolutions.
The negative EBIT impact, related to the restructuring and associated costs, is estimated at EUR 8 to 10 million.
Fugro will retain the Hugin Explorer vessel and potential liabilities and claims related to ongoing litigation, in line with previous disclosures.
Mark Heine, CEO, said: ‘I am pleased to announce this divestment, which is a key priority on our 2021 management agenda.
“It represents the final step in our exit from deep seismic data collection, which does not fit our Path to Profitable Growth strategy.
“Our strategy is centred on providing insights from Geo-data to support our clients in managing their project risks during design, construction and operation of their assets.
“The divestment proceeds are fair considering today’s challenging circumstances in the seismic market, and we believe that PXGEO is a better owner of these assets and well positioned to take this business forward.”
Peter Zickerman, founder, director and strategic advisor, PXGEO, said: “We are excited to take Seabed Geosolutions into a new era and build on its world class OBN operational expertise and innovative technology solutions.
“Leveraging the combined strengths of OBN and towed streamer seismic data acquisition techniques we will deliver our clients seamless subsurface imaging solutions for a sustainable future.”
In 2020, Fugro’s pre-tax losses totalled £40.5 million for the 12 months, against a deficit of £19.9m in 2019, while revenues dropped about 15% to £1.2 billion.
The results reflected restructuring costs of £15.2m and asset impairments of £5.1m.
Over the course of the pandemic, the company has reduced its headcount by about 10%, or 1,000 roles.
Before Covid struck, Fugro employed more than 600 people in Aberdeen, where one of its remote operations centres is based.