Plexus Holding PLC has suspended dealings with its Russian licensee partner Gusar due to the situation in Ukraine.
Gusar supplies Plexus’ wellhead equipment into Russia and the CIS and although the suspension is not expected to have a material impact on trading this year to June 2022 there will be a cash flow impact from £650,000 outstanding in royalties.
Good trading elsewhere will mean the year-end cashflow position being broadly in line with current expectations, Plexus added.
In particular, a partnership with Schlumberger division Cameron is progressing well, it said, with numerous opportunities being pursued outside of Russia.
“These include production wellhead sales, a number of Plexus Product developments utilising proprietary POS-GRIP technology, and importantly our newly re-entered exploration rental wellhead market activities following the recent signing of a collaboration,” said today’s statement.