Plexus Holdings PLC (AIM:POS) said government policy uncertainty and global uncertainty have led to delays to North Sea projects, but that it continues to have a strong pipeline and sustained interest in its technology.
The company said it continues to execute its strategy to build a higher-margin rental model, with its rental fleet set to double to 16 Exact EX wellhead sets.
Up to 12 sets are expected to be available in the near term to support activity as market conditions improve.
Plexus reported a strong pipeline and sustained interest in its technology, with a high conversion rate, though project start dates are being pushed back by operators.
Current work includes approximately £1.5 million of orders for rental wellhead equipment and services under a framework agreement with a UK Continental Shelf operator, focused on plug and abandonment wells.
The company added that an exploration drilling project in the Middle East is due to resume this week following a pause caused by regional hostilities.
However, progress on North Sea projects has been slower than expected. Plexus said several carbon capture and storage, gas storage and plug and abandonment projects have been delayed at the planning stage.
A North American rental contract has also been pushed back and is now expected to deploy in the first quarter of 2027.
The company said the delays reflect external factors including uncertainty around UK government oil and gas policy and broader geopolitical influences on customer decision-making.
Plexus said it considers the delays to be a deferral of activity rather than lost work.
It added that current working capital resources, combined with revenues from ongoing projects, are sufficient for the immediate future and no additional capital expenditure is required in the near term.