TIDMPOS
RNS Number : 1587S
Plexus Holdings Plc
28 November 2012
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
28 November 2012
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, will hold its Annual
General Meeting ('AGM') today. Jerome Jeffrey Thrall, Chairman,
will make the following statement at the AGM:
"Plexus recently delivered another set of record results for the
financial year ended 30 June 2012. During the last twelve month
period, revenues rose 27.8% to GBP19.72m, generating a 33% increase
in EBITDA to GBP6.24m, and pre-tax profits of GBP3.09m, almost
double that of the previous year.
"Multiple contract wins over the period from new and existing
customers including leading multinationals BG Group, Maersk and
Centrica Oil lie behind the strong trading performance. Our
POS-GRIP wellhead systems have now been used or selected to be used
in over 250 oil and gas wells across the world, including, Asia
Australia, Africa, Europe, Middle East, Russia, and North Africa.
With many major oil and gas operators now customers of Plexus, we
believe the industry is increasingly recognising our POS-GRIP(R)
wellhead equipment as best in class in terms of quality,
reliability and safety. This success to date underpins our decision
to implement a growth strategy centred on the strong Asian market
including Singapore, Malaysia, and Brunei.
"Winning both new and repeat business however provides the best
proof of all that the momentum behind our wellhead rental business
is gaining traction. Post period end, we announced a further four
contract wins worth a total of GBP6.15m. Encouragingly, these were
all secured as a result of satisfied customers either repeating
orders or recommending Plexus' equipment to their peers. I believe
Plexus is now in a virtuous circle, whereby new contract wins
translate into higher earnings which in turn allow us to invest in
further capacity and inventory, enabling us to win and service more
contracts whilst maintaining the quality and standards of our
offering. At the same time, the cashflow generated by the rental
wellhead business enables us to fund the development of innovative
projects such as the important 'HGSS' subsea wellhead design Joint
Industry Project ('JIP') in conjunction with a number of
international oil companies, with the aim of extending the family
of POS-GRIP(R) products that we can offer our blue chip customer
base.
"In the year ahead, we expect to report further significant
progress across the range of our activities. In our core rental
business, I believe we will build on the strong start to the year
as demand for our POS-GRIP(R) proprietary friction-grip wellhead
equipment, particularly for high pressure/high temperature
('HP/HT') exploration rental applications continues to grow.
Exploration and production activities are moving to ever more
complex and hostile environments, notably deepwater where equipment
is required to function under extreme pressures and temperatures.
By necessity, and in many instances encouraged by regulatory
pressures, the industry is therefore turning to those companies
that can provide proven, superior and reliable equipment which can
also deliver innovative solutions to increasingly challenging
drilling conditions. As an example, there is increasing coverage in
the trade press of the need for wellhead equipment that can cope
with pressures of up to 20,000 psi and beyond. Indeed certain
recent merger and acquisition activity is directly aimed at helping
to address the need for new solutions and features both for surface
and subsea applications.
"The Board believe the achievements of Plexus to date mostly
within the jack-up drilling exploration market merely scratch the
surface of the opportunity available to us when looking at the
wellhead equipment market as a whole. The addressable market for
our POS-GRIP technology is already a multi-billion dollar one and
is still growing, particularly in the subsea sector where new
challenges such as Artic drilling are gaining momentum. Only
recently in the Drilling Contractor publication article called
'HPHT research heats up' it was reported that "...today's
technological advances won't be enough to sustain long-term
production in fields where ever rising pressures and temperatures
characterize virtually every reservoir." I am confident therefore
that we will continue to increase our market share in the years
ahead both through organic growth as well as various strategic
initiatives and, in the process, generate substantial value for all
our shareholders.
"Finally, as announced on 16 October 2012, I am pleased to
confirm that the Board has recommended the payment of an increased
final dividend of 0.5p per share, 16% higher than the previous year
ended 30 June 2011, and which will be submitted for formal approval
at this AGM today."
* * ENDS * *
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Jon Fitzpatrick Cenkos Securities PLC Tel: 020 7397 8900
Ken Fleming Cenkos Securities PLC Tel: 0131 220 6939
Felicity Edwards St Brides Media & Finance Tel: 020 7236 1177
Ltd
Frank Buhagiar St Brides Media & Finance Tel: 020 7236 1177
Ltd
Notes to Editors:
Plexus Holdings PLC, which began trading on AIM in December
2005, is an oil and gas engineering and services business, which
supplies wellhead and mudline suspension equipment for exploration
and production applications. Based in Aberdeen, with offices in
London, Cairo, Kuala Lumpur and a presence in Houston, Texas, it
has developed and patented a friction-grip method of engineering
for oil and gas field wellheads and connectors, POS-GRIP(R), which
involves deforming one tubular member against another to effect
gripping and sealing.
The Company plans to accelerate the roll out of POS-GRIP
wellhead equipment as a superior alternative to current technology
and for it to become the future industry standard for wellhead
design. In particular, the technology has advantages in High
Pressure/High Temperature (HP/HT) and Extreme HP/HT (X-HP/HT) oil
and gas environments, for which there is growing global demand and
where Plexus is being increasingly recognised as the supplier of
choice. Importantly, the Company is focussed on extending its
proprietary technology into an increasing number of subsea
applications. In line with this, in March 2011 the Company launched
an initiative to develop a new subsea wellhead design, HGSS(TM),
utilising its friction-grip technology in collaboration with key
oil and gas operators and service companies. Royal Dutch Shell,
Wintershall, Maersk, Tullow Oil and the UK entity of the world's
largest offshore drilling company have joined the initiative to
date. The HGSS subsea wellhead design will include a combination of
key features never before seen in a subsea wellhead which include
being rated to 15,000 psi, 4,000,000 pounds of 'instant' casing
lockdown capacity, annulus pressure monitoring and access for
'bleed off' capability to address sustained casing pressure ('SCP')
issues which are recognised by the API as a serious industry
problem, and rigid metal annular seal technology qualified to match
the performance of premium casing. Development is expected to be
completed by mid 2013 calendar year.
To date, POS-GRIP wellhead systems have been used or selected to
be used in over 250 oil and gas wells by international companies
including Apache Energy Australia, BHP Billiton, BG International,
Bowleven plc, BP, Brunei Shell Petroleum, Cairn Energy, Centrica,
ConocoPhillips, Dana Petroleum, Dubai Petroleum, GDF SUEZ, Global
Santa Fe, Maersk, Niko Resources, Petro-Canada Trinidad &
Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy
Limited, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman
Energy, Tullow Oil, and Wintershall.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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