TIDMPOS
RNS Number : 6995X
Plexus Holdings Plc
22 December 2023
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
22 December 2023
Plexus Holdings PLC
('Plexus' or 'the Company')
AGM Statement
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, known for its safety,
time, and cost-saving capabilities, will hold its Annual General
Meeting ('AGM') today. At the AGM, Craig Hendrie will be appointed
to act as the Chairman of the meeting and will make the following
statement:
"As 2023 draws to a close, it is a good time to reflect on the
past year where we continued to advance our vision of positioning
Plexus' POS-GRIP(R) technology as the future industry standard for
wellhead design. We built on opportunities through our main
licencing partner SLB and achieved organic growth where a major c.
GBP8m special project was secured together with various plug and
abandonment ('P&A') opportunities. At the same time, we believe
that we have made a valuable contribution to ESG initiatives in
terms of our technology's leak-free sealing capabilities and
through the blowout preventer ('BOP') wellhead designs.
"Having sustained many years of significant criticism, the oil
and gas ('O&G') industry has had its hand forced into
incorporating sustainability strategies that encompass new
technologies focused on reducing its carbon footprint and impact on
the environment. This is driven in part by investor and public
pressure, and in part by policy including in the EU and US where
legislators are close to finalising comprehensive rules to crack
down on methane leaks from fossil fuels. Importantly, earlier this
month negotiations at COP28 delivered a pledge signed by some 50 of
the world's largest O&G producers to dramatically reduce
methane leaks to near zero by 2030, including the need to address
equipment leaks.
"In tandem, there is a growing recognition that a transition to
cleaner energy sources will have to take place over decades rather
than years and closer to home. This has resulted in new drilling
licences being approved worldwide including in Plexus' home market,
the North Sea, which align with the UK's climate targets and
delivery of energy security. Consequently, Plexus is in a good
position with a significant market opportunity for its leak-free
wellhead equipment related technology.
"As Plexus has previously emphasised, in today's decarbonising
world, methane wellhead leaks should be prevented whenever and
wherever possible. While leak detection and subsequent and often
temporary cure is an option chosen by many operators, Plexus'
ground-breaking, patented method of friction-grip engineering that
can be applied to a wide variety of O&G equipment such as
wellheads and connectors can deliver a more compelling preventative
guaranteed leak-proof and cost-effective solution.
"Accordingly, during 2023, we attracted new clients which
recognise the unique combination of our proprietary technology,
expertise, and the value that we offer. Furthermore, our
relationship with SLB, the leading global oilfield services
company, continued to strengthen as highlighted by the term
extension of its non-exclusive licence agreement for use of
POS-GRIP technology for surface production wellheads, and where we
believe that its testing programme is progressing well.
"Post period end, we completed a successful P&A campaign
with Oceaneering and advanced a major rental contract for a special
project utilising our subsea technology. Interestingly, both
contracts saw an uplift in initial revenue estimates, which can be
a recurring theme in the industry as the scope of work within a
project often expands. The Oceaneering contract generated a 70%
increase on initial revenue estimates, while the value of the
second contract increased from c.GBP5m to c.GBP8m. We also secured
another P&A contract through licensor SLB for a leading North
Sea operator and won a contract with Neptune Energy UK where
Plexus' technology will enable the permanent abandonment of a UK
North Sea well.
"Plexus is aware not only of its responsibility to create
change, but also of its ability to make a positive difference. Our
commitment to sustainability is therefore a core corporate value
and is recognised by the London Stock Exchange with our Green
Economy Mark. Being shortlisted in the 'Environmental
Sustainability Innovation' and 'Significant Contribution to the
Industry' categories of the Offshore Network's 2023 OWI Global
Awards is further validation of our position in this regard.
"Looking ahead, there is good momentum in the business going
into the new calendar year and our outlook is positive with a
number of positive tender opportunities underway in relation to our
recently re-entered wellhead rental for exploration drilling from
Jack-up rigs. With this background, the Board continues to have the
utmost confidence in Plexus and the role it can play in support
emissions reduction and decarbonising strategies. As such, Plexus
directors Ben van Bilderbeek and Jeff Thrall have been prepared to
support the business financially, helping it to capitalise on the
pipeline of opportunities arising within its target markets.
"All that remains is for me to thank all of Plexus' employees
and partners for their constructive and positive collaboration
throughout 2023 and our shareholders and customers for their
continued support. I look forward to a successful 2024."
**ENDS**
For further information please visit www.plexusplc.com or
contact:
Plexus Holdings PLC Tel: 020 7795 6890
Ben van Bilderbeek, CEO
Graham Stevens, CFO
Cavendish Capital Markets Limited Tel: 0131 220 6939
Derrick Lee
Adam Rae
------------------------------
St Brides Partners Ltd plexus@stbridespartners.co.uk
Isabel de Salis
Paul Dulieu
------------------------------
NOTES
Plexus Holdings plc (AIM: POS)
Plexus is an IP led company focussed on establishing its
patented leak-proof POS-GRIP(R) wellhead and associated equipment
as the go-to technology for energy markets whilst making a genuine
contribution to the oil and gas industry's ESG and NetZero goals by
championing "through the BOP" (Blow-out Preventer) designs, and
lifetime leak-proof HG(R) metal-to-metal sealing systems. Having
protected the environment for many years through these
technological innovations, the Company was awarded the London Stock
Exchange's Green Economy Mark in July 2021 and continues to place
emphasis on its ability to reduce harmful methane emissions and
unnecessary maintenance and intervention costs.
Headquartered in Aberdeen, the Company has provided leak-free
wellhead performance in over 400 wells worldwide and worked with an
array of blue-chip oil and gas company clients. As well as
generating direct revenues from securing orders for surface
production wellheads particularly in the UK and European North Sea
regions, the Company has several licencing/collaboration agreements
with major partners including FMC Technologies, which is a
subsidiary of TechnipFMC and Cameron, a SLB Group company. Cameron
has a non-exclusive term licence to use the POS-GRIP and HG(R)
metal-to-metal seal method of wellhead engineering for the
development of conventional and unconventional oil and gas surface
production wellheads, and Plexus entered into a Cooperation
Agreement, which enabled Plexus to return to the Jack-up
Exploration (Adjustable) Wellhead rental business for 'through the
BOP' jack-up applications, where Cameron will help to provide
Plexus with sales leads and market insight.
Plexus' current suite of products and applications include: "HG"
wellheads, which combine POS-GRIP technology with gas tight leak
free metal-to-metal sealing; the Python(R) subsea wellhead,
developed in a Joint Industry Project with several industry
leaders; the POS-SET(TM) Connector for the de-commissioning and
P&A market; and Tersus-PCT, an innovative HP/HT tie back
connector product. Having proved the superior uniquely enabling
qualities of POS-GRIP Technology, Plexus is now also focused on
establishing its technology and equipment in other markets such as
Plug and Abandonment de-commissioning, carbon capture, gas storage,
hydrogen and geothermal where it can play an important role in
reducing harmful methane emission risks as operators strive to
deliver on ESG commitments and NetZero goals in a safe and
cost-effective way.
For more information visit: https://www.plexusplc.com/
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END
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