REG - Plexus Holdings Plc - Update re: War in Ukraine

Plexus HoldingsAnnouncement

07/03/2022 07:00

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RNS Number : 7739D  Plexus Holdings Plc  07 March 2022

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

 

7 March 2022

 

 

 

Plexus Holdings PLC

('Plexus', 'the Company' or 'the Group')

 

Update re: War in Ukraine

 

Plexus Holdings PLC, the AIM-quoted oil and gas engineering services business
and owner of the proprietary POS-GRIP® method of wellhead engineering,
continues to monitor the tragic war in Ukraine, and our thoughts are with the
Ukrainian people, as well as with ordinary Russians who are suffering
consequences.

 

Plexus has a licence agreement with its Russian licencee partner, LLC Gusar
("Gusar") under which, Gusar is able to supply the Russian and CIS markets
with Plexus' POG-GRIP rental exploration wellhead equipment used from Jack-up
rigs. As a result of the ongoing situation in Ukraine, Plexus has decided to
suspend activities with Gusar until further notice.

 

The suspension of these activities is not expected to have a material impact
on Plexus' financial trading performance in the year ending 30 June 2022
("FY22"), which the Board anticipate will remain in line with market
expectations.

 

The Company believes it will however incur Gusar related negative cash flow
impact of circa £650,000 in FY22 related to a combination of pending
royalties and planned advance stage payments for wellhead equipment which as a
result of the situation are now currently uncertain. As the company had been
performing well, it is currently anticipated that despite this situation, the
year-end cash position will be broadly in line with expectations.

 

On a more positive note, apart from the positive progress with Cameron in
relation to the surface production wellhead licence, Plexus is actively
pursuing opportunities in its main target markets outside of Russia, in
particular the UK and European Continental Shelfs. These include production
wellhead sales, a number of Plexus Product developments utilising proprietary
POS-GRIP technology, and importantly our newly re-entered exploration rental
wellhead market activities following the recent signing of a Collaboration
Agreement with Cameron International Corporation, a Schlumberger company.
These ongoing initiatives are expected to gain momentum in the next financial
year 2022/23.

 

The Company will continue to monitor the situation in Ukraine and the impact
on Russian commercial activities and will provide further updates as required.

 

ENDS

 

For further information please visit www.posgrip.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) 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 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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