Fugro to Sell Seabed Geosolutions to PXGEO

Dutch offshore survey services company Fugro has agreed to sell its Seabed Geosolutions subsidiary to PXGEO Seismic Services (PXGEO) for USD 16 million (approximately EUR 14 million) in cash. The transaction is expected to be completed in mid-2021.

The divestment includes Seabed’s ocean bottom node (OBN) inventory, handling equipment, related technology, and order backlog. 

In addition, Fugro said that "a significant number of personnel" responsible for delivering the Seabed Geosolutions’ business will transition to PXGEO, with the exact number depending on 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 the wind-down of the remaining parts of the Seabed Geosolutions’ organization, Fugro said.

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, Fugro CEO said he was pleased to announce the divestment, "which is a key priority on our 2021 management agenda."

" [The divestment] 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 the 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 PXGEO: ‘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.’

Completion of the divestment is expected for mid-2021, subject to customary closing conditions, with proceeds delivered to Fugro at that time.