The head of Aberdeen well engineering specialist Plexus Holdings has joined the International Energy Agency (IEA) in saying there is "no excuse" for the oil and gas industry's failure to cut energy emissions last year.
The comments from chief executive Ben van Bilderbeek came as Plexus posted a slight increase in first-half losses, adding that revenues for the full year will undershoot expectations. However, Mr van Bilderbeek said he is "encouraged" by recent orders, including the largest-ever £5 million contract announced earlier this month for the company's POS-GRIP sealing technology.
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He noted that in the Global Methane Tracker report published in February, the IEA said technologies to prevent emissions are "available and are cheaper than ever to implement".
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"As the CEO of a company that has committed to delivering leak-free wellhead equipment solutions to [oil and gas] companies for over 20 years, I also believe that there is indeed 'no excuse', and agree with IEA executive director Faith Birol who recently urged policymakers to double down the energy industry pressure to clean up its methane pollution, mainly from leakage and distribution," Mr van Bilderbeek said.
During the six months to the end of December, Plexus made a pre-tax loss of £2.1m, an increase from a loss of £1.95m in the same period a year earlier. Revenues of £709,000 were down from £734,000 previously.
Revenues in the second half will only be "slightly higher" than in the first six months of the year, though this is because a £2.5m "special project" has been booked as a rental rather than a sold contract, with the benefits to come through in 2024.
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"I am encouraged by the increased activity within the oil services sector, particularly exploration and production drilling, and this, combined with the raised awareness of the industry's impact on climate change, strengthens the investment case for Plexus," Mr van Bilderbeek added.
"We believe that our technology-driven ability to prevent leaks rather than just 'detecting and repairing' leaks must be the optimal way forward for the industry, and one which cannot logically be ignored."
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