REG - Plexus Holdings Plc - AGM Statement

Plexus HoldingsAnnouncement

22/12/2023 07:00

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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® 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®
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. £8m 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.£5m to c.£8m. 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
(http://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® 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® 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® 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® subsea wellhead, developed in a Joint Industry Project
with several industry leaders; the POS-SET™ 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/
(https://www.plexusplc.com/)

 

 

 

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