Aberdeen-based dredging services firm X-Subsea has fallen into administration with the loss of 20 jobs due to the downturn in the oil and gas industry.
The move follows “unsustainable” losses and cash flow problems stemming from a downturn in orders. The company’s Norwegian parent, Reef Subsea, was placed in insolvency proceedings in February.
Six of X-Subsea’s staff based overseas have been retained to complete its sole ongoing contract, but the remaining 20 workers in Aberdeen have been made redundant with immediate effect.
Joint administrators Iain Fraser and Tom MacLennan of FRP Advisory will now seek a buyer for the business and its assets.
Fraser said: “X-Subsea is the market leader in the design and supply of highly sophisticated excavation and dredging equipment.
“The business has been badly affected by the current downturn in the oil and gas sector, and despite restructuring of the group earlier this year, income and cash flow has fallen substantially, with administration of the UK businesses being the only option.”
He added: “X-Subsea has a blue-chip client base and interests in valuable intellectual property assets. We will now market the businesses and assets for sale, and would urge interested parties to contact us as soon as possible.”
X-Subsea’s overseas subsidiaries in Mexico, Singapore and the US are not in administration.