Plexus buoyed by £900,000 Malaysian wellhead order

Plexus boss Ben van Bilderbeek said the firm's global expansion 'has proved timely'
Plexus boss Ben van Bilderbeek said the firm's global expansion 'has proved timely'
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Oil and gas technology firm Plexus Holdings has landed a £900,000 order in Malaysia.

The Aberdeen-based firm, which last month warned that its full-year results would fall “very significantly” below City hopes, said the wellhead deal with Talisman Malaysia is the first to be awarded to its joint venture company in the region, PPA.

READ MORE: Plexus shares slide on ‘significant’ profit warning

Plexus, which develops wellheads aimed at preventing the type of blowout behind the 2010 Gulf of Mexico disaster, said the contract comes as the Aim-quoted company seeks to replicate its successes in the North Sea elsewhere in the world.

Chief executive Ben van Bilderbeek said: “In recent years we have begun to roll-out our international footprint, and this strategy becomes even more important at a time when the North Sea is suffering from the impact of significantly lower oil prices.

“As well as establishing PPA in Malaysia, we have also secured a licensing agreement with Jereh, a major Chinese oil services provider, to manufacture and sell Plexus’ wellhead equipment to the Chinese and wider Asian oil and gas markets.”

He added: “Set against a challenging oil price backdrop, our global expansion initiative has proved timely, although it will inevitably take time to establish. By supplying and servicing markets with different cost and pricing profiles compared to the North Sea, we are aiming to not only grow our share of the sizeable global exploration, production and subsea markets, but also to diversify our revenue and customer base further.”