Aberdeen-based oil and gas engineering services company Plexus Holdings has reported a 28% increase in first-half profits.
The firm says these are another set of “record results,” with profits after tax of the six months to December 31, 2014 at £1.97million, up from £1.54million in first-half profits in 2013.
It has also reported a 7% increase in sales revenue to £13.51million, adding that its patented POS-GRIP wellhead systems have shown a “strong financial performance“ as a result of both new and ongoing contracts with major oil and gas operators across the globe. These include a number of purchases of High Pressure/High Temperature applications from firms including Det Norske, BG Group, Centrica, Shell Brunei and Shell China.
Over this timeframe, the company also doubled the size of its operational headquarters in the Dyce area of the city. This involved the acquisition of a 36,000 sq. ft. work shop and office facility for £2.4million in September.
Plexus also renewed and increased its facilities with the Bank of Scotland at this time, comprising of a £5million revolving credit facility on a three year term and a £2million overdraft on a yearly term. An additional five year £1.5million term loan was put in place in order to fund part of the purchase of the Aberdeen facility.
The firm’s chief executive, Ben van Bilderbeek, said: “We are delighted to report another set of record results for the six months to the end of December 2014.
“This excellent financial performance is the result of new business generation supplying our proprietary POS-GRIP wellhead systems, primarily into the exploration jack-up drilling market.
“Our wellhead equipment continues to gain traction with leading international oil and gas majors as it meets the critical safety and performance demands required of wellhead technology across all pressure spectrums.
“As the exploration for, and production of, oil and gas goes deeper and becomes more complex, particularly in HP/HT environments, the need for such innovative, safe and effective wellhead technology is being increasingly recognised.
“In the North Sea we enjoy a dominant position within the increasingly important HP/HT arena, which we believe we can replicate in other key regions around the world.”
Mr van Bilderbeek also suggested the remainder of the financial year will continue to be positive, due to the tax cuts and incentives laid out in the 2015 Budget. He said: “Of particular relevance to Plexus is the introduction of legislation to create a new cluster allowance to support the development of HP/HT projects and encourage exploration and appraisal activity in the surrounding area or ‘cluster’.
“These welcome and long awaited measures will help drive further investment in exploration and production, and Plexus expects to benefit over the coming years.”