Dutch survey contractor Fugro has reached a binding agreement with PXGEO Seismic Services to sell certain assets and the related business of its non-core subsidiary Seabed Geosolutions for $16 million in cash.
The divestment includes Seabed’s ocean bottom node (OBN) inventory, handling equipment, related technology and order backlog.
Fugro said the completion of the divestment is expected in mid-2021, subject to customary closing conditions, with proceeds to be delivered to the company at that time.
In addition, a significant number of personnel responsible for delivering the Seabed Geosolutions’ business will transition to PXGEO, while the exact number will depend on a further analysis of the needs of the business.
The cash proceeds are in line with the book value of the divested business and are expected to cover anticipated restructuring costs and other cash liabilities related to wind down of the remaining parts of the Seabed Geosolutions’ organisation.
The negative EBIT impact, related to the restructuring and associated costs, is estimated at €8 to 10 million, according to Fugro.
The company also confirmed it will retain the Hugin Explorer vessel and potential liabilities and claims related to ongoing litigation, in line with previous disclosures.
Mark Heine, Fugro’s 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 centered around 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 & Strategic Advisor at 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”.