Plexus Holdings PLC (AIM:POS) has "substantial opportunities" ahead due to increasing pressure placed on operators to deliver on decommissioning obligations ocver the coming decade, highlighted broker Cavendish.
Plexus has issued an operational update and agreed a new £2 million loan facility with OFM Holdings, where it said it expects decommissioning activity in the North Sea is set to increase sharply.
Currently, roughly 15% share of total expenditure from decommissioning is expected to rise to around 30% by 2030.
Plexus is positioned to increase its activity in this market but has experienced timing volatility in 1H26, with some operators falling behind on decommissioning programme obligations.
Government policy on the Energy Profits Levy remains in place until 2030 and the ban on new drilling licences and exploration activity has had knock-on effects on operator decommissioning and plug and abandonment work.
The company said decommissioning requirements are substantial by 2035 and that operators will face increasing pressure to meet existing obligations.
Some projects originally anticipated for 1H26 have moved into 2H26 and the new loan facility has been arranged to provide working capital flexibility to support an expected rise in second-half activity.
Plexus plans to continue investing in the expansion of its rental wellhead inventory.
Despite the shift of certain projects into the second half, Plexus said it expects FY26 to be in line with current expectations.