REG - Plexus Holdings Plc - c.£5m Contract Award

Plexus HoldingsAnnouncement

06/03/2023 07:00

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RNS Number : 9209R  Plexus Holdings Plc  06 March 2023

 

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

 

This announcement contains inside information

6(th) March 2023

 

 

 

Plexus Holdings PLC ('Plexus' or 'the Company')

c.£5m Contract Award

 

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 is
pleased to announce a major contract.

Plexus has secured an order for its proprietary POS-GRIP "HG®" wellhead
equipment and sealing technology for a specialised project application, which
is to be deployed over the next 12 months. The current value of the order is
more than £5m. Approximately £2.5m of milestone payments will be received
and accounted for as deferred revenue in the current financial year, and the
full value of the contract will be recognised as sales revenues in the
financial year ending 30 June 2024.

Plexus will supply the equipment on a rental basis, and part of the equipment
deployment required for the project will be the operation of POS-GRIP
components, including leak proof metal to metal "HG" seals, in a subsea
environment. This will help to demonstrate key elements and functionality of a
full Python® Subsea Wellhead, as well as further developing the potential for
the rental of specialised wellhead systems.

Ben van Bilderbeek Plexus' CEO said - "I am delighted that our Aberdeen team
have been able to use their exceptional engineering and equipment design
skills to secure this major contract, which significantly increases the
visibility of our future revenue and cash flow projections, and Plexus'
reputation as a "can do" surface or subsea equipment solutions provider. This
contract win is an example of how POS-GRIP's proprietary subsea engineering
can be deployed as a bespoke solution for a unique application, which bodes
well for the role Plexus can play in the future of the growing decommissioning
market."

"I believe that a combination of our developing remedial and decommissioning
capabilities, our Python® subsea wellhead products, and the rental and sale
of Plexus exploration and production wellhead systems, places Plexus in a good
position to capitalise on a growing range of opportunities as indicated in our
recent AGM Statement of the 23 December 2022. I was also particularly
encouraged by a "Research and Markets" January 2023 report on the global
wellhead equipment market that projects a compound annual growth rate of circa
9.3%, resulting in a doubling of market size between now and 2030 to, circa
$11.8 billion.

"As the oil and gas markets emerge from eight-years of recession, during which
time Plexus has had to sit out a three year non-compete period before being
able to return to the previously profitable rental exploration wellhead
sector, we had to adapt our remaining business to cope with the market
downturn. Encouragingly, as evidenced by today's announcement we are now
experiencing an increasing number of enquiries, including for our revamped
Exact EX exploration rental wellhead and mudline hanger technologies, which
are offered in partnership with Schlumberger (SLB) on a worldwide basis. I
believe Plexus is finally turning the corner and will prosper in the coming
years, both organically, and with major technology licensees such as
TechnipFMC and SLB, who have recognised and adopted the unique benefits of the
ESG and NetZero compliant POS-GRIP method of wellhead engineering."

 

**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

 Cenkos Securities PLC     Tel: 0131 220 6939

 Derrick Lee

 Pete Lynch

 St Brides Partners Ltd    plexus@stbridespartners.co.uk

 Isabel de Salis

 Ana Ribeiro

 Max Bennett

 

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 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.

 

For more information visit: https://www.plexusplc.com/
(https://www.plexusplc.com/)

 

 

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