Plexus Holdings PLC (AIM:POS), the AIM-listed oil and gas engineering services group, said there is "good momentum in the business" moving into 2024.
In a statement ahead of the company's AGM, chairman Craig Hendrie told investors there were a number of "positive" tender opportunities after it recently re-entered wellhead rental for exploration drilling from Jack-up rigs.
Hendrie also highlighted the successful advancement of Plexus' POS-GRIP technology as a potential future standard for wellhead design, noting significant achievements including a major £8 million project and various plug and abandonment opportunities.
At the same time, he underscored Plexus' contribution to environmental, social and governance (ESG) initiatives, particularly in leak-free sealing capabilities and blowout-preventer designs.
Hendrie's statement acknowledged the oil and gas industry's forced shift towards sustainability due to public and investor pressure. It also pointed to impending legislation in the EU and US.
"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," he said.
"This has resulted in new drilling licences being approved worldwide including in Plexus' home market, the North Sea, which aligns 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."