By Scott Wright
PLEXUS Holdings, the oil and gas engineering services specialist, has declared it is well-placed to take advantage of demand for North Sea gas in the decades to come following the huge disruption to global energy supply brought by the Russian invasion of Ukraine.
The Aberdeen-based company, which supplies and designs well-head technology, highlighted the “revitalised recognition of the role hydrocarbons still have to play in the world economy” as western economies turn away from Russian oil and gas.
But while Plexus emphasised the continuing importance of hydrocarbons to meeting energy demands, the company said its technology had a part to play in cutting carbon emissions by reducing the escape of methane gas. It is also exploring whether its technology can be applied to energy systems such as carbon capture and storage, and geothermal power.
Plexus, led by chief executive Bert van Bilderbeek, reported a loss before tax of £1.9 million for the first half, broadly unchanged from the interim stage in 2020.
It won a further surface production wellhead contract with a major North Sea operator during the period, and strengthened its relationship with Cameron, part of the giant Schlumberger oilfield services provider, with two new agreements.
The first will see Plexus re-enter the exploration rental wellhead sector in which it had built an “excellent reputation” before the sale of the division to TechnipFMC in 2018, while the second expands the scope of an existing licence worldwide.
Meanwhile, the company reaffirmed that it has suspended sales and marketing activities with Gusar, which holds a licence to supply Plexus products in Russia, “for the foreseeable future”. Plexus said the move is not expected to have a material impact on its performance in the year ending June 30.
Mr van Bilderbeek said: “The deployment of our proprietary wellhead and associated equipment designs for surface and subsea applications remains a key focus, and we are already pursuing a number of new tender opportunities for exploration rental wellheads.
"Growing oil and gas supply constraints, combined with gas being recognised as the transition fuel of choice, suggest that the UKCS and ECS still have an important role to play over the coming decades.”
He added: “In addition to these opportunities, we are also confident that in the longer term our technology can play a crucial role in supporting emerging industries such as carbon capture, gas storage, hydrogen and geothermal.”
Shares in Plexus Holdings closed up 4.5% at 5.7p.
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