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Plexus's POS-GRIP technology offers way to cleaner gas

Last updated: 14:09 18 Mar 2024 GMT, First published: 15:13 24 May 2021 BST

Snapshot

  • Plexus Holdings up 3.5% as full-year guidance restated
  • Plexus shares get a poke, broker says SLB deal allows focus on other market sectors and applications
  • Plexus introduces new wellhead neck seal product; a game-changer in oil and gas well maintenance
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About the company

Plexus Holdings PLC is an established oil and gas engineering and service business based in Aberdeen, with an office in London and subsidiaries in Singapore, Malaysia and Brunei.

The group has developed and patented a friction grip method of engineering for oil and gas field wellheads and connectors, named POS GRIP® which involves deforming one tubular member against another to effect gripping and sealing.

How it is doing

18 Mar 2024

Shares in Plexus Holdings PLC (AIM:POS) rose 3.5% after the company said it expects to meet full-year forecasts, buoyed by a solid first-half performance.

The wellhead engineering specialist highlighted two major developments: a lucrative order for its POS-GRIP HG technology worth up to £8 million, and a £4.1 million ($5.2 million) intellectual property deal.

For the six months ending December 31, Plexus reported a significant rise in sales revenues to £5.08 million, up from £709,000 in the previous year, and an underlying profit (EBITDA) of £3.08 million, reversing a £1.1 million loss.

At 2.09 pm, the shares were changing hands for 17.08p, up 0.58p.

18 Mar 2024

Wellhead engineering specialist Plexus Holdings PLC (AIM:POS) said it expects to hit full-year forecasts after delivering a solid (and profitable) first-half performance.

Two key events had a positive impact: Plexus began to see the financial benefit of an order for its POS-GRIP HG technology worth up to £8 million; and, late in the period, it inked an intellectual property deal worth £4.1 million ($5.2 million).

26 Feb 2024

Plexus Holdings PLC (AIM:POS) has announced the successful completion of a customer-sponsored R&D project for its bespoke HG-R tubing hanger neck seal.

The company told investors that the latest development aims to revolutionise the maintenance of surface production wellheads as it can combat the common failures of conventional seals used in the oil and gas industry.

What the brokers say

02 Jan 2024

Plexus Holdings PLC (AIM:POS) shares jumped 10% then fell into the red after it announced a new, expanded IP licence agreement with SLB (previously Schlumberger) replacing the previous surface production wellhead licence agreement with Cameron (an SLB company) for a cash consideration of US$5.2 million.

The fact that the new licence agreement is royalty-free may have led to the swing in the shares, but broker Cavendish pointed out that Plexus had moved its focus away from the larger-volume, lower-cost surface production wellhead market.

Plexus retains the ability to operate within this sub-sector, so it can offer a full package solution to customers.

What management says

27 Feb 2024

Plexus Holdings PLC (AIM:POS) CEO Ben van Bilderbeek joined Proactive's Stephen Gunnion with details of a new replacement tubing hanger neck seal product, aimed at enhancing the maintenance capabilities of surface wellhead systems to a higher leak-proof standard.

This technology, developed for a specific customer through a sponsored R&D project faced leakage issues between the xmas tree and the wellhead, allows for upgrading wellhead and tubing hanger standards to reduce future maintenance and leak-related needs.

Utilizing Plexus' proprietary HG Seal technology, which is based on the proven scientific principles of Hertzian Stress Theory, the neck seal provides a permanent solution to seal leaks and is designed to be adaptable for both Plexus' products and those of conventional wellhead competitors. The innovation seeks to extend the operational field-life of wellheads by ensuring a stable sealing environment that prevents leakage without the need for disassembly and potential shut-ins.

Plexus introduces new wellhead neck seal product; a game-changer in oil and...

Plexus Holdings PLC (AIM:POS) CEO Ben van Bilderbeek joined Proactive's Stephen Gunnion with details of a new replacement tubing hanger neck seal product, aimed at enhancing the maintenance capabilities of surface wellhead systems to a higher leak-proof standard. This technology, developed...

3 weeks ago