Plexus Holdings narrows losses to £2.3million

Plexus CEO Ben van Bilderbeek launches the “Python” subsea wellhead at Offshore Europe 2015.
Plexus chief executive Ben Van Bilderbeek

Depreciation costs, corporation tax and discontinued operations have led to heavy losses for Aberdeen-based Plexus Holdings.

The oil well technology specialist has posted its interim results for the six months to December, with a pre-tax loss of £2.3million.

The deficit is narrowed by £1.4million when compared to a £3.7m loss for the same period in 2017.

Plexus said depreciating equipment and rental property costs of £800,000 contributed, along with the fact it did not provide for a 19% UK Corporation Tax charge.

The firm also missed out on revenues from its jack-up business which was sold to TechnipFMC in February 2018, which last year brought in £2.4m.

However, Plexus said the balance sheet remains strong with minimal debt, net cash of £9.5m and financial assets worth £2.8m.

The firm is focussing on the rollout of its Pos-Grip wellhead technology.

Earlier this year its Russian licensee Gusar won a contract to supply the equipment to Gazprom, with Plexus receiving royalties.

For the North Sea, the firm is working to build on a contract to supply wellhead technology to Spirit Energy in the last financial year, which is currently being installed.

CEO Ben van Bilderbeek said: “Our goal has always been to establish our patent-protected, friction-grip method of engineering as an enabling technology for the wider energy industry.

“For a junior supplier such as Plexus to have become the dominant player in the North Sea for Jack-up exploration drilling wellheads, despite having to compete against top tier multinationals with substantial resources at their disposal, is testament to the strength of our technology.

“It has been a long time since favourable cyclical and structural drivers have coincided with significant developments at the corporate level.  We now have industry partners, a cash rich balance sheet, and we are being invited to tender for large surface production projects.

“This is an exciting period for Plexus, and I look forward to providing further updates as we focus on capitalising on Pos-Grip’s potential to be a game-changer in terms of delivering a step-change in performance and wellhead safety standards.