Plexus Holdings (LSE: POS) the AIM-quoted oil and gas engineering services business announced this morning that it has received a significant order frommultinational oil and gas company BG Group, tosupply surface wellhead and mudline equipment services for anexploration well in the UK Continental Shelf in the North Sea.
Plexus says that it expects revenuesfrom the contract to begin in December of this year, but the company hasnt disclosed the value of the order. Plexuss share price is currently up 2.2% in trading so far today.
Plexus says that it expects the work, which will see it supplying its 18-3/4 15,000psi High pressure/High Temperature adjustable surface wellhead and mudline system,to take 150 days. BGs exploratory well will be drilled using theTransocean Galaxy II rig, following completion of the GDF operated Dalziel exploration well, which is also usingPlexuss wellhead equipment and services.
Plexus has previously supplied wellheadequipment and services to BG, for use on a number of its North Sea exploration and appraisal wells, including the Thunderer, White Bear and Jackdaw III projects.
Commenting on the order, Plexus CEOBen Van Bilderbeek said:
This latest order from BG Group, a long standing and valued customer of Plexus, further cements our position as the dominant supplier of wellhead equipment for the HP/HT market in the North Sea which bodes well at a time when a number of Government initiatives are underway to boost exploration activity in the North Sea.
Together with the provision of first class ancillary services, we strongly believe this winning combination will see us deliver on our objective to replicate our success in the North Sea in other geographies, such as Asia where we are building a significant business hub to service the highly active Asian and Oceania regions. I look forward to providing further updates on our progress in due course.
At 248,75p, Plexuss share price is down 9.5% on this time last year, although that still puts it ahead of the AIM 100 index, which is down 10.7% over the same period. And over five years Plexus is positively trouncing its index, with a share price rise of 492%, compared with just 12.7% for the AIM 100.
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Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.