LONDON - Plexus (NASDAQ:PLXS) Holdings plc, an AIM-listed oil and gas engineering services company, reported a significant turnaround in financial performance for the fiscal year ending June 30, 2024. The company, known for its proprietary POS-GRIP® wellhead engineering technology, announced a profit before tax of £2.8 million, a substantial recovery from the previous year's £4.2 million loss.
The company's sales revenue surged to £12.7 million from £1.5 million in 2023, while adjusted EBITDA stood at £5.4 million, reversing a £2.5 million loss from the previous year. The profit after tax was declared at £2.9 million, compared to a £4.0 million loss in 2023, with basic earnings per share rising to 2.83p from a 4.00p loss per share.
Operational highlights from the year included an increase in the value of a major rental contract from approximately £5 million to £8 million, successful completion of a Plug and Abandonment (P&A) campaign, and securing new contracts for P&A projects in the North Sea. Notably, a licensing agreement with SLB in December 2023 added a $5.2 million cash consideration to the company's finances.
Post the reporting period, Plexus has seen the commencement of work on a North Sea P&A contract and is nearing the completion of the major rental contract, with anticipated revenues to reach £9 million. The company is also manufacturing additional sets of Exact™ wellhead equipment to support growth in the Jack-up rental wellhead market and has signed a new Master Services Agreement expected to generate various works in the P&A sector and Jack-up exploration.
CEO Craig Hendrie attributed the return to profitability to an exceptional license deal and a large special project, along with progress made in the underlying revenue of the core business. The company's strategy is to focus on short-term growth in Jack-up rental revenue to maintain profitability and establish a diversified income mix.
Plexus' achievements, including securing a major contract for subsea wellhead rental equipment and specialized P&A services, highlight its commitment to innovation and growth. The company's board has seen changes, with founder Ben van Bilderbeek becoming Non-executive Chair and Craig Hendrie appointed as CEO.
The company's financial results and operational progress indicate a strategic pivot towards adapting to the shifting trends in the global offshore oil and gas drilling market, particularly in the North Sea's transition to Carbon Capture Storage and P&A projects. This information is based on a press release statement from Plexus Holdings plc.
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