Update re: War in Ukraine

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  Ben van Bilderbeek, CEO Graham Stevens, CFO	Tel: [phone]
Cenkos Securities PLC Derrick Lee Pete Lynch	Tel: [phone]
St Brides Partners Ltd Isabel de Salis Ana Ribeiro Max Bennett	[e-mail]

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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