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Plexus Holdings says oil drilling market still subdued

“Importantly, the company's visibility of existing and potential sales opportunities around the world is currently greater than at the same time last year."
picture of oil well
Oil companies are still being cautious over new drilling

Oilfield drilling equipment renter Plexus Holdings PLC (LON:POS) is still being affected by new wells being postponed due to the weak oil price.

Trading remains challenging with discussions over contracts taking longer than expected to conclude it said, though Plexus still anticipates order under negotiation will come through next year, to June 2018.

This year, to June 2017, revenues have fallen again though there will be a proportionately smaller impact on underlying and stated losses due to cost saving measures already taken. 

“Importantly, the company's visibility of existing and potential sales opportunities around the world is currently greater than at the same time last year, “said the statement and directors are confident of improving results in the 2018 financial year.

Ben van Bilderbeek, chief executive, added: "As a result of various project timetables changing, and the expected uplift in exploration activity being slower than anticipated, it is taking longer to for us to see the recovery in Plexus' order book. 

“Whilst this is frustrating, we are convinced that the actions taken by management are prudent and leave the company in a strong position to recover quickly and strongly once activity in the sector resumes.”

Plexus has an inventory of 62 wellhead sets and licensing agreements in place in a number of key oil and gas producing areas.

“These capabilities and proven track record supplying rental wellhead equipment for some of the most technically challenging HPHT wells, means that Plexus is very well placed to help operators with their future jack-up exploration needs, as well as surface and subsea applications where the company will be also focusing its attention."

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