What Plexus does
POS-GRIP, invented by the company’s chief executive Ben van Bilderbeek, is designed to prevent gas leaks, particularly methane, in wellheads and other connectors.
The system has been used in more than 300 wells worldwide.
In June, a new joint venture vehicle, Plexus Pressure Control (PPC) was set up to supply surface production ‘Xmas trees’ and wellhead annulus outlet valves.
The unit will be majority-owned by Plexus and its partner is BEL Valves Limited, a subsidiary of Newcastle-based British Engines Group.
The AIM-quoted company will control the intellectual property, design and manufacturing.
How it is doing
COVID-19 disruption has seen sales prospects placed on hold, said Plexus, while customers, oil and gas companies and offshore service companies, scaled back and/or postponed operations as businesses were also hit by falling crude and gas prices.
Plexus highlighted some key business wins – for example, a follow-up order from Spirit Energy and a recent deal with Schlumberger’s Cameron unit – that were sealed and said it is positioned to benefit as the sector returns to growth, as is anticipated.
Affected by COVID-19, the company reported sales revenue of £525,000 in the year to end June 2020, down from £3.6mln in 2019.
Plexus reported an adjusted underlying earnings (EBITDA) loss of £3.08mln, compared to a US$2.27mln loss in the year before, and, the operating loss was marked at £5.6mln from £4.01mln in 2019. The company ended the year with £4.09mln of net cash.
What the boss says: Ben van Bilderbeek, chief executive
Gas-proof technology like POS-GRIP was “ever more important” as it is now known that methane gas is “84 times as bad environmentally as carbon dioxide”.
“Methane is extremely damaging, so the race is on to improve the leakage rate before the gas is burnt … we have a technology that we can take to customers and say we are leak-proof and we guarantee it for the life of the well.”
He adds that the market the company is now in is worth “over US$2bn each year”.
“Our goal is to fully capitalise on the potential of our technology within the oil and gas industry and beyond, to improve the performance of wellheads and other pressure-containing equipment, and to develop a portfolio of POS-GRIP-based products and partners.
“As well as benefiting the environment and our customers, the board believes this approach will in time lead to sustained and growing revenue streams and can ultimately deliver value for our shareholders.”