Plexus Holdings PLC (AIM:POS) shares soared in Friday morning’s deals boosted by news of new business in what’s expected to be a growth sector for the offshore oil and gas services firm.
The company today announced a new contract win, valued at over £1 million, with the company supporting ‘plug & abandonment’ activities in the Dutch North Sea.
It builds on Plexus's increasing presence in decommissioning, which has been identified as a key focus area for the company’s growth.
The agreement sees Plexus supply its Exact adjustable surface wellhead equipment along with the Centric mudline system tooling and services.
Operations are slated to start in the second quarter and will continue for nine months.
"The number of wells that must be permanently plugged and abandoned is fast growing, particularly in mature offshore locations such as the North Sea, where the OEUK indicated that decommissioning would account for 25% of oil and gas expenditure in 2023, up from 12% in 2022, and encouragingly I believe this trend will continue,” Plexus chief executive Ben Van Bilderbeek said in a statement.
“We are therefore delighted that Plexus' reputation is strengthening within this sector, and that our range of customers is broadening.
He added: “this contract demonstrates the progress we are making in getting back into the adjustable wellhead and mudline equipment market as an established expert in this field and 'go-to' company for this type of equipment and service."
In London, Plexus shares climbed 3.5p or 23.3% changing hands at 18.5p each.