AGM Statement

Plexus Holdings Plc

22 December 2023

 

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

22 December 2023

 

Plexus Holdings PLC

('Plexus' or 'the Company')

AGM Statement

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, will hold its Annual General Meeting ('AGM') today. At the AGM, Craig Hendrie will be appointed to act as the Chairman of the meeting and will make the following statement:

"As 2023 draws to a close, it is a good time to reflect on the past year where we continued to advance our vision of positioning Plexus' POS-GRIP® technology as the future industry standard for wellhead design. We built on opportunities through our main licencing partner SLB and achieved organic growth where a major c. £8m special project was secured together with various plug and abandonment ('P&A') opportunities. At the same time, we believe that we have made a valuable contribution to ESG initiatives in terms of our technology's leak-free sealing capabilities and through the blowout preventer ('BOP') wellhead designs.

"Having sustained many years of significant criticism, the oil and gas ('O&G') industry has had its hand forced into incorporating sustainability strategies that encompass new technologies focused on reducing its carbon footprint and impact on the environment. This is driven in part by investor and public pressure, and in part by policy including in the EU and US where legislators are close to finalising comprehensive rules to crack down on methane leaks from fossil fuels. Importantly, earlier this month negotiations at COP28 delivered a pledge signed by some 50 of the world's largest O&G producers to dramatically reduce methane leaks to near zero by 2030, including the need to address equipment leaks.

"In tandem, there is a growing recognition that a transition to cleaner energy sources will have to take place over decades rather than years and closer to home. This has resulted in new drilling licences being approved worldwide including in Plexus' home market, the North Sea, which align with the UK's climate targets and delivery of energy security.  Consequently, Plexus is in a good position with a significant market opportunity for its leak-free wellhead equipment related technology.

"As Plexus has previously emphasised, in today's decarbonising world, methane wellhead leaks should be prevented whenever and wherever possible. While leak detection and subsequent and often temporary cure is an option chosen by many operators, Plexus' ground-breaking, patented method of friction-grip engineering that can be applied to a wide variety of O&G equipment such as wellheads and connectors can deliver a more compelling preventative guaranteed leak-proof and cost-effective solution.

"Accordingly, during 2023, we attracted new clients which recognise the unique combination of our proprietary technology, expertise, and the value that we offer. Furthermore, our relationship with SLB, the leading global oilfield services company, continued to strengthen as highlighted by the term extension of its non-exclusive licence agreement for use of POS-GRIP technology for surface production wellheads,  and where we believe that its testing programme is progressing well.

"Post period end, we completed a successful P&A campaign with Oceaneering and advanced a major rental contract for a special project utilising our subsea technology. Interestingly, both contracts saw an uplift in initial revenue estimates, which can be a recurring theme in the industry as the scope of work within a project often expands. The Oceaneering contract generated a 70% increase on initial revenue estimates, while the value of the second contract increased from c.£5m to c.£8m. We also secured another P&A contract through licensor SLB for a leading North Sea operator and won a contract with Neptune Energy UK where Plexus' technology will enable the permanent abandonment of a UK North Sea well.

"Plexus is aware not only of its responsibility to create change, but also of its ability to make a positive difference. Our commitment to sustainability is therefore a core corporate value and is recognised by the London Stock Exchange with our Green Economy Mark. Being shortlisted in the 'Environmental Sustainability Innovation' and 'Significant Contribution to the Industry' categories of the Offshore Network's 2023 OWI Global Awards is further validation of our position in this regard.

"Looking ahead, there is good momentum in the business going into the new calendar year and our outlook is positive with a number of positive tender opportunities underway in relation to our recently re-entered wellhead rental for exploration drilling from Jack-up rigs. With this background, the Board continues to have the utmost confidence in Plexus and the role it can play in support emissions reduction and decarbonising strategies. As such, Plexus directors Ben van Bilderbeek and Jeff Thrall have been prepared to support the business financially, helping it to capitalise on the pipeline of opportunities arising within its target markets.

"All that remains is for me to thank all of Plexus' employees and partners for their constructive and positive collaboration throughout 2023 and our shareholders and customers for their continued support. I look forward to a successful 2024."

**ENDS**

For further information please visit www.plexusplc.com or contact:

Plexus Holdings PLC   Ben van Bilderbeek, CEO Graham Stevens, CFO	Tel: [phone]
Cavendish Capital Markets Limited Derrick Lee Adam Rae	Tel: [phone]
St Brides Partners Ltd Isabel de Salis Paul Dulieu	[e-mail]

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 SLB Group company. Cameron has a non-exclusive term 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 production 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.

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 P&A 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/

 

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