REG - Plexus Holdings Plc - AGM Statement

Plexus HoldingsAnnouncement

20/12/2021 07:01

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RNS Number : 0492W  Plexus Holdings Plc  20 December 2021

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment &
services

20 December 2021

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® friction-grip method of wellhead
engineering, known for its safety, time and cost saving capabilities, will
hold its Annual General Meeting ('AGM') today; this is being held as a closed
meeting due to the ongoing COVID-19 pandemic. At the AGM, Graham Stevens will
be appointed to act as the Chairman of the meeting and will make the following
statement:

 

"Being a services business within the oil and gas sector has not been easy for
the past few years, particularly since the pandemic began and when more often
than not our industry is seen as the villains in the climate change story.
However, for over 30 years Plexus has been promoting the prevention of methane
leaks at the well site, collaborating with many blue-chip companies to help
prevent blow outs and emissions. Accordingly, we were delighted to receive the
Green Economy Mark from the London Stock Exchange earlier in the year, which
recognised our ongoing commitment to protecting the environment, initially
with our 'through the BOP' (Blow-out Preventer) wellhead designs, and
subsequently with our POS-GRIP® proprietary metal-to-metal HG® leak-proof
wellhead sealing system.

 

"The 2021 UN Climate Change Conference in Glasgow, COP26, recently played a
major role in emphasising to the world the need to reduce leaks across the
supply chain. This is particularly important where 'Super Emitters' are
concerned, which are said to account for 75% of all methane emissions. As an
example, one blowout that occurred at a well site in Ohio in February 2018
resulted in a reported circa 60 kilotons of methane being released into the
atmosphere in 20 days; this is more than most European countries produce
annually.

 

"Encouragingly, COP26 saw 105 countries sign a global methane pledge at the
event to reduce overall emissions by 30% by 2030.  We are hopeful that the
regulators will review the current processes and technologies used in the oil
and gas sector and insist on companies utilising leak preventative strategies
and equipment whenever and wherever possible. This hasn't happened yet, but we
remain optimistic.

 

"In addition, COP26 also highlighted the fact that whilst renewable energy
technology is rapidly advancing, oil and gas will remain the predominant
energy source during the transition for some years. Indeed, as recently
reported by the Wall Street Journal, "The leaders of the world's largest oil
companies said Monday [6 December 2021] that demand for the products they make
will remain robust for years to come even as the world attempts to transition
to lower-carbon energy sources. During this transition, we, at Plexus, can
help companies in the sector make a genuine contribution to their ESG and
NetZero goals by specifying and installing our unique proprietary technology
at their well sites, such as our leak-proof POS-GRIP® wellhead equipment.

 

"Whilst our focus has been on applying our technology across a range of
applications within the oil and gas sector including surface exploration and
production wellheads, subsea and Plug and Abandonment de-commissioning, new
opportunities in other industries such as carbon capture, gas storage,
hydrogen and geothermal are increasing. With this in mind, we continue to
invest in R&D to develop new products for alternative applications of
POS-GRIP® technology; our 49% interest in Kincardine Manufacturing Services
Limited, a specialist precision engineering business, supports us in this
regard, providing us access to machining capability.

 

"Alongside our organic sales initiatives, we continue to pursue licencing
opportunities, and several major companies have chosen to partner with us
including TechnipFMC, Gusevsky Valves Plant LLC and Cameron International (a
Schlumberger company). Our relationship with Cameron is particularly exciting
as a second agreement signed in August 2021 enables us to return to the
lucrative rental jack-up exploration (adjustable) wellhead market to pursue
opportunities for low-cost wellheads in the volume market and develop
POS-GRIP® equipment in larger Schlumberger EPIC contracts. Furthermore, a
licencing agreement has seen us support the development of Cameron's own
inaugural low-cost surface production wellhead designs that incorporate our
technology; it is anticipated that these will begin to be marketed by Cameron
in Q1 2022 calendar year.

 

"Importantly, we are also happy to confirm in line with our IP and licensee
development strategy, an important post preliminary results extension to our
ongoing partnership with Cameron, a Schlumberger Group company. We announced
last week the signing of a "Variation Agreement" which expands the scope of
the existing non-exclusive surface production wellhead licence agreement. This
Variation Agreement will enable Cameron to use Plexus' POS-GRIP® method of
wellhead engineering on conventional and unconventional surface production oil
and gas wells worldwide, and increased royalty rates will apply for the
expanded applications, further strengthening our relationship with Cameron.
This new agreement is in line with our IP and licensee development strategy to
create a portfolio of revenue streams and further expanding the reach of our
proprietary POS-GRIP technology, whilst we continue to build on agreements
with other blue-chip organisations, and pursuing our organic sales activities.

 

"Looking ahead, there remains considerable scope to cement Plexus' goal of
becoming an essential contributor to the green revolution as its superior
leak-free equipment begins to gain traction within the industry, and we look
forward to updating our shareholders in the coming months.

 

"As 2021 draws to a close, Plexus would like to thank its team and
shareholders for their continued support and wish you all a very Happy
Christmas and prosperous New Year."

 

**ENDS**

 

For further information please visit  www.plexusplc.com
(https://eur03.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.plexusplc.com%2F&data=04%7C01%7Cmax%40stbridespartners.co.uk%7Cf95a4b6f76534111278008d9ada6ae14%7C48b7268319d344289c4b73cf144d89ed%7C1%7C0%7C637731753658455158%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=e3gV5uYvAWyZh02Yl7KrqzsdCn%2FStgkR5dk3Do2XxLA%3D&reserved=0)
  or contact:

 

 Ben van Bilderbeek / Graham Stevens  Plexus Holdings PLC     Tel: 020 7795 6890
 Derrick Lee                          Cenkos Securities PLC   Tel: 0131 220 9100
 Isabel de Salis / Max Bennett        St Brides Partners Ltd  plexus@stbridespartners.co.uk

 

NOTES:

 

Plexus Holdings plc (AIM: POS) is an IP led company
focussed on establishing its patented leak-proof POS-GRIP® Technology in
wellhead and associated equipment as the go-to drilling and production
equipment for energy markets whilst making a genuine contribution to the oil
and gas industry's ESG and NetZero goals by championing "through the BOP"
(Blowout Preventer) products, and lifetime leak-proof "HG"® 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 hundreds of 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 LLC Gusar in Russia.
Furthermore, it works closely with Cameron, a Schlumberger Group company
Cameron has a non-exclusive licence to use the POS-GRIP and "HG"
metal-to-metal seal method of wellhead engineering for the development of
conventional and unconventional oil and gas surface 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 through a formal Sales Advisory Board. .

 

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® subsea wellhead, developed in a Joint Industry Project
with several industry leaders; the POS-SET™ Connector for the
de-commissioning and abandonment 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.

 

 

 

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