Plexus Holdings PLC (AIM: POS) - another decent order shows there is life in oil equipment
The AIM quoted oil and gas engineering services business and owner of the brilliant POS-GRIP® friction-grip method of wellhead engineering has announced another decent purchase order from Brunei Shell Petroleum ('BSP') to supply both High Pressure/High Temperature ('HP/HT') and standard pressured wellhead systems and services for three additional exploration wells under an existing four year contract, which runs to 2016.
The total value of the POs is estimated at £1.5m with revenues expected to commence in April 2015. 20%+ operating margins for this business so orders of this magnitude are meaningful for the bottom line! The Group has a long standing relationship with BSP having first supplied it with Plexus’ wellhead equipment in 2006. Management pointed out how Plexus wellhead equipment offers significant cost savings (as well compelling safety attractions), which is clearly becoming ever more relevant in today’s volatile oil price environment. The Group’s presence in the Asian region with hubs in Malaysia, Singapore and Brunei, should help them…