In early trading on Tuesday, Plexus Holdings PLC (AIM: POS) shares jumped 49% after the oil and gas engineering firm, listed on AIM, reported a notable boost in the value of a key contract.
The company, recognized for pioneering the POS-GRIP wellhead engineering technique, stated that a contract initially pegged at £5 million in March has now increased to a commendable £8 million. The client responsible for this enriched contract has not been named.
Plexus is supplying its POS-GRIP “HG” wellhead equipment and sealing technology on a rental basis for a specialised project application including leakproof metal-to-metal “HG”® seals in a subsea environment. The full c.£8 million of sales revenue for this contract is anticipated to be recognised in the current financial year ending 30 June 2024.
Plexus affirmed that the comprehensive value of this deal will be incorporated in the financial reports for the fiscal year ending on 30 June 2024.
Ben van Bilderbeek Plexus’ CEO said:
“I am pleased to be able to announce the additional revenue attributable to this important bespoke solution contract.
“Using innovative technologies, like ours, oil and gas companies and operators can transform the industry for the better, particularly in relation to reducing methane emissions and meeting Net Zero goals as part of the global energy transition cycle. This is pivotal as governments across the world strive for energy independence, and more recently in the UK, with the news that hundreds of new oil and gas licenses will be granted in the North Sea.
Common sense seems to have finally arrived with the realisation that it is far more damaging to the environment to ship oil, and in particular LNG, across the world by tankers than it is to produce local pipeline gas and oil. Indeed, it is reported that LNG sourced from afar is up to x10 more CO2 intensive than local North Sea gas. We are encouraged by the increased interest in our POS-GRIP technology and look forward to updating shareholders on our continued progress.”
With a yearly increase of 219.71% to date, the company’s share price hit a new 52-week high, 5.84p, trading at 5.50p.
