PLEXUS Holdings, the oil and gas technology firm, has moved to dampen concern over the falling price of oil, stressing that the medium to long term prospects for the industry remain healthy.
The well-head engineering specialist, which booked record profits of £5 million in the year to June 30, said it was encouraged by the view among oil companies and institutions that current prices "could recover quite quickly."
This runs counters to fears expressed this week that the sharp fall could exacerbate the difficulties faced by the industry in the North Sea. A study warned that as many as 35,000 jobs in the sector and its supply chain could go as companies cut investment in the North Sea in the next five years.
Speaking at the company's annual meeting, chairman Jeffrey Thrall said: "Whatever the short term effects are from this current price volatility, what must not be forgotten is that the medium to long term demand prospects for oil and gas are undiminished and will of course increase with population growth and increasing industrialisation around the world.
"Even if it is unpopular to say, it is widespread view that wind farms, tidal energy, and solar panels will not replace hydrocarbons in the foreseeable future."
Mr Thrall welcomed the pledged in last week's autumn statement for a new North Sea cluster tax break allowance, designed to support investment in more challenging, high pressure field projects.
He said the company's financial performance in its last financial year reflected its progress in supplying its POS-GRIP wellhead system to leading international oil and gas companies for jack-up drilling operations around the world. He highlighted its performance outside the UK and European North Sea, with "rest of world" sales up 17 per cent over the period.
Since year end Plexus has won several new contracts, including with Centrica in the southern North Sea, with Det Norske Oljeselskap ASA offshore Norway, and with BG Group (UK), in the North Sea.
The directors plan to pay a final dividend of 0.62p for the 2014 financial year, up 12.7 per cent on last year.
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