Plexus Holdings PLC’s (LON:POS) chairman, Jeff Thrall believes the prospects for the group, both at the corporate and trading level have never been better.
In a statement to be delivered at the AIM-listed oil and gas engineering services firm’s Annual General Meeting on Thursday, Thrall said: “I believe that Plexus and its proprietary technology has reached a key point in time in its strategic development, and why I see an exciting future for our POS-GRIP wellhead and connector applications in larger market sectors such as surface production, and subsea exploration and production.”
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He added: "Our technology is proven to be superior to conventional solutions in terms of performance, reliability and safety, especially in high pressure high temperature environments.
“As a result, it is exactly the right technology at the right time as the global concerns about toxic methane gas leakage become increasingly urgent and where gas-proof metal sealing performance is essential as the oil and gas industry moves increasingly to gas production.”
Thrall continued: "With the macro environment hopefully moving in Plexus' favour, it is imperative that at the micro level we are able to fully capitalise on the opportunities we see opening up for us, and position ourselves to do so."
He added: “To this end, and following the sale of our Jack-up Business to TechnipFMC, we have a cash-rich, debt-free balance sheet, and furthermore we no longer have the considerable draw on our time and resources that came with having to manage our wellhead rental business.
“Instead, we can focus on R&D, IP development and exploitation and the roll-out of our technology and equipment in other markets including surface production wellheads, subsea and decommissioning, whilst ensuring we are properly resourced and have put in place an appropriate cost base.”
The chairman said: "Our long-term goal has always been to establish POS-GRIP as a new industry standard for wellhead and metal sealing designs and, at the same time, generate significant value for our shareholders.”
He concluded: “We are ideally placed to deliver and with this in mind, I look forward to providing further updates on our progress over the course of the year ahead."