Plexus Holdings PLC (AIM:POS) chief executive Ben van Bilderbeek has told investors he is increasingly confident that the company has reached a tipping point that positions it to rebuild significant value to shareholders over the next 18 months.
“New oil and gas exploration and production drilling activities are increasing, oil is back at record prices and meeting ESG requirements is no longer optional, with regulation and investor sentiment becoming ever more rigorous,” he said in the specialist engineer’s interim results statement.
“If they are to survive, companies will also need to explore alternative options to reach Net Zero such as carbon capture and storage and the use of depleted formations, and geothermal power where Plexus is assessing ways in which its technology can be adapted to deliver unique solutions.
“With superior, leak-free technology at its core, escalating organic opportunities, strengthening blue-chip partnerships, dynamic R&D advances, our re-entering of the Jack-up exploration wellhead rental business, and with ESG goals on the agenda of governments worldwide, I am increasingly confident that Plexus has reached a tipping point that positions us well to rebuild significant value to shareholders over the next 18 months."
Plexus reported £743,000 of revenue for the six months ended 31 December 2021, compared to £419,000 in the comparative period of 2020.
It reported narrower earnings (EBITDA) from continuing operations, at £1.06mln versus £1.21mln, and said that it made a £1.95mln loss from continuing operations.
At the end of the period, Plexus had £3.38mln of cash and £3.29mln had been drawn from a financing facility with Lombard.
van Bilderbeek noted: "Despite another challenging six months trading period in which COVID-19 continued to impact on the global economy, there is now at least a clear sign that the pandemic is beginning to subside, and although we must still all be vigilant, the economy is returning to some sort of normality.
“However, just as COVID recedes, what the world did not anticipate post-period end was Russia waging war on Ukraine and the ensuing tragic consequences that are ongoing; it is not yet clear what this will mean for the world, the oil and gas industry or our relationship with our Russian licensee Gusar where we have suspended business activities for the foreseeable future.
"Notwithstanding these challenging circumstances, we are pleased with our progress during the period both organically, with the winning of a further surface production wellhead contract for the North Sea, and strategically, with the strengthening of our relationship with Cameron with the signing of two new agreements.”