TIDMPOS
RNS Number : 1998F
Plexus Holdings Plc
16 May 2017
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
This announcement contains inside information
16 May 2017
Plexus Holdings PLC ('Plexus' or 'the Company')
Trading Update
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, provides the following update on
trading.
The Company confirms that the challenging trading conditions in
the sector have, as has been widely reported, continued in the
second half of the current financial year, ending June 2017
("FY17"). Although Plexus continues to pursue a number of specific
opportunities in the North Sea and overseas, where discussions are
progressing well, some of these are taking longer than anticipated
to conclude as operators continue to show caution when committing
to new capex and projects. In addition, a number of encouraging new
contracts are currently being negotiated and are now likely to be
concluded early in the next financial year, to June 2018
("FY18").
This has resulted in a further material reduction of revenues
for FY17. However, as a result of the Company's successful cost
cutting and efficiency drive programme, which has already reduced
costs to align them with a reduced revenue profile, the impact on
EBITDA and LBT is expected to be less significant.
The Company remains in a robust financial position, with reduced
capital spending commitments alongside a strong cash position and
debt free balance sheet. Importantly, the Company's visibility of
existing and potential sales opportunities around the world is
currently greater than at the same time last year.
The Directors continue to believe that Plexus' POS-GRIP
technology enables the Company to deliver best in class solutions
to the industry and, notwithstanding these ongoing difficult
trading conditions, the Directors are confident of improving
results for Plexus during FY18.
Chief Executive Ben van Bilderbeek said:
"As a result of various project timetables changing, and the
expected uplift in exploration activity being slower than
anticipated, it is taking longer to for us to see the recovery in
Plexus' order book. Whilst this is frustrating, we are convinced
that the actions taken by management are prudent and leave the
Company in a strong position to recover quickly and strongly once
activity in the sector resumes.
Plexus has a unique and superior technology, an inventory of 62
wellhead sets, a blue-chip customer base, licensing agreements in
place with established local partners in important hydrocarbon
regions, a growing suite of products and a strong balance sheet.
These capabilities and proven track record supplying rental
wellhead equipment for some of the most technically challenging
HPHT wells, means that Plexus is very well placed to help operators
with their future jack-up exploration needs, as well as surface and
subsea applications where the company will be also focusing its
attention so as to generate value for all its shareholders."
**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
Nick Tulloch Cenkos Securities Tel: 0131 220
PLC 9772
Derrick Lee Cenkos Securities Tel: 0131 220
PLC 9100
Frank Buhagiar St Brides Partners Tel: 020 7236
Ltd 1177
Isabel de Salis St Brides Partners Tel: 020 7236
Ltd 1177
NOTES:
Plexus Holdings PLC
Plexus Holdings PLC is an AIM traded oil and gas engineering and
services business, which supplies wellhead and mudline suspension
equipment together with associated equipment and services for
exploration and production applications. Based in Aberdeen, with a
presence in London, Cairo, Kuala Lumpur, Singapore and 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.
To date, POS-GRIP wellhead systems have been used in over 400
oil and gas wells by numerous international companies. In
particular, the technology has advantages in High Pressure/High
Temperature (HPHT) and Extreme HPHT (X-HPHT) oil and gas
environments, for which there is growing global demand and where
Plexus is being increasingly recognised as the supplier of choice.
Plexus has recently successfully completed the supply of an X-HPHT
exploration wellhead to Total for the Solaris well which is
believed to be the deepest and highest pressure well ever drilled
in the North Sea.
Plexus is also extending its technology into an increasing
number of other applications:
-- In September 2015 it launched a prototype of the 'Python(TM)
Subsea Wellhead' developed as part of a Joint Industry Project in
collaboration with BG, Royal Dutch Shell, Wintershall, Maersk,
TOTAL, Tullow Oil, ENI, LR Senergy, Transocean and Oil States
Industries Inc.
-- It recently also completed a JIP in conjunction with Maersk
to develop a downhole HPHT Tieback connector which for the first
time allows the reconnection of production casing to HPHT
exploration and production wells.
-- It developed and qualified a new product called POS-SET
Connector(TM) which is designed to re-establish a connection onto
rough conductor casing previously cut above the seabed to
facilitate tieback or abandonment operations.
Having proven its POS-GRIP technology in the niche jack-up
exploration market Plexus is now focused on extending its
applications into the much larger multi-billion dollar land and
platform production well market as well as actively pursuing a
first time use of the new Python subsea wellhead into the important
subsea sector. Such strategic initiatives will be pursued both
organically and with trading partners and licencees.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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