First half pre-tax profits up 33% to £1.5 million
Oil and gas engineering services firm Plexus Holdings has reported a 33 per cent rise in pre-tax profits to £1.5 million for the six months to December 31, 2011.
The Aberdeen-based firm has almost matched the £1.57 million pre-tax profit it reported for the full year to June 30, 2011, which was a 144 per cent rise in profits on the previous year.
AIM-listed Plexus, whose POS-GRIP wellhead technology is used all over the world, said revenues also rose by 24 per cent in the six-month period to £9.3 million.
Plexus reported total revenues of £15.4 million for the 2011 year.
The company has increased capital investment by 70 per cent compared to the first half of last year to £1.7 million – more than half of which was spent expanding the POS-GRIP rental inventory.
Plexus said in a market update today it has a strong order book with major contract wins with Vantage Drilling Company to supply a major Malaysian national oil and gas operator for offshore East Malaysia and with Santos Ltd for offshore Western Australia.
The company has also moved into new territories in the past year with contracts valued at £3.75 million with Apache Energy Australia, Murphy Suriname Oil in South America, Niko Resources in Trinidad and Tobago, Vantage Drilling Company in Malaysia and BG Egypt.
The company also raised £2 million of new capital in January from a £6.2 million share placing to finance its Joint Industry Project to create new oil and gas technology in response to the Gulf of Mexico oil spill disaster.
Plexus' chief executive and the inventor of POS-GRIP, Ben van Bilderbeek, said: "I am pleased to report an excellent set of results for the first six months of our financial year.
“This period has been particularly active for the company on a number of fronts, including new contract wins with leading industry players in new territories.
“Additionally, at the corporate level, post period end we completed a successful share placing which has increased the liquidity in our shares and also broadened our institutional shareholder base.
"Whether the growing support for our proprietary POS-GRIP friction grip technology comes from our customers or our investors, there is an increasing recognition that Plexus has the potential to become a leading specialist oil and gas wellhead services company that will offer a new wellhead standard for surface and in time, subsea applications.
"This progress, I believe, will see Plexus transformed from offering equipment that is often selected as a wellhead of necessity to that of a wellhead of choice.
“The unique advantages our equipment offers in terms of safety, operational performance, and cost savings will, I am certain, become more relevant in a world where greater regulation and health and safety requirements drive the need for, and use of, the best and safest available technology.
"For these reasons, I am looking to the future with confidence."
Plexus has two new products currently in development, one of which will use high pressure/ high temperature(HP/HT) technology to convert exploration and pre-drilled production wells to either subsea or platform producing wells.
The company said there is no other technology available on the market which can 'save' or 'convert' such wells, which cost exploration firms between £50 million and £200 million.