Plexus Holdings, oil and gas engineering services business, has noted that its revenue for the current financial year, ending 30 June 2017, is currently running materially behind expectations.
The company is said to be in negotiations for the conclusion of several new contracts which if they fall within this financial year will go some way to recovering this shortfall for the year, or will help to underpin visibility for the next financial year.
Furthermore, due to cost cutting measures which have already been implemented, and further actions by management, the impact on LBT is expected to be proportionally less significant.
The company, however, believes that see the second half of the current financial year could fall in line with the bottom of the exploration drilling down cycle, especially in the North Sea, and this view is supported by the fact that the company has more visibility at this time this year than at the same time last year.
“With the oil price stabilising at levels which are profitable for many exploration & production companies as a result of the recent OPEC production reduction strategy, the Directors are confident of improving results for Plexus during the next 2017/18 financial year,” the company said in Wednesday’s trading update.
Plexus’ CEO, Ben Van Bilderbeek, said: “The new business opportunities that Plexus is seeing at present are increasing, with pricing levels in line with our expectations. The continued underinvestment in the sector will, we believe, result in an increased level of activity from operators in the second half of 2017 onwards, which Plexus is undoubtedly well placed to capitalise on.“