| CATEGORY: AIM BULLETIN SECTOR: INDUSTRIAL TRANSPORTATION |
Subsea blames FUGRO for revenue delay |
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Mon 16 Oct 2006
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LONDON (SHARECAST) - Shipwreck salvage group SubSea Resources hit choppy waters today after it said the poor performance of the appointed Remotely Operated Vehicles (ROV) operating company FUGRO would delay revenues.
The company said it has been very pleased with the performance of the Geomaster and TS Marine at its Celia copper recovery project, but FUGRO have performed “very poorly”.
It added that without two reliable ROVs available to work the recovery system, the significant costs entailed in keeping the entire heavy lift operation at site are not justified.
“As a consequence the focus of the operation will now change to a much lower cost but slower exercise, benefiting from the progress made by the Geomaster.”
Subsea, which said it is satisfied that this was a problem that can be isolated to the FUGRO ROVs and is not generic to the industry, is otherwise “very pleased” with the progress of the Celia project.
Managing director Mark Gleave confirmed that the changes “will impact only on the timing of the company's revenue stream, not on the quantity.”
“The work done both on Celia and the Miranda survey now allows us to make far more accurate planning of cargo recoveries.”
The company is now planning for total revenues in the next 12 months of approximately £50m to be generated at a cost of approximately £15m.
The Geomaster, contracted from Geoshippng through TS Marine, has opened up the cargo on Celia allowing SubSea's survey and recovery vessel John Lethbridge to access at least 1,000 tonnes of copper.
There are currently 5,000 tonnes remaining on the vessel.
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