Plexus suspends all Russian activities | Rigzone
Scottish oil and gas services company Plexus Holdings has decided to suspend all activities in Russia until further notice regarding the conflict in Ukraine.
Plexus, the owner of the proprietary POS-GRIP wellhead engineering method, said it is still monitoring the tragic war in Ukraine and the company’s thoughts are with the people of Ukraine, as well as the Ordinary Russians who suffer the consequences.
The company has a license agreement with its Russian licensee partner Gusar. Under the license, Gusar can supply the Russian and Commonwealth of Independent States markets with Plexus’ POG-GRIP exploration wellhead rental equipment used for jack-up rigs.
To clarify, the Commonwealth of Independent States includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and Uzbekistan.
“Due to the current situation in Ukraine, Plexus has decided to suspend its activities with Gusar until further notice,” the company said.
According to Plexus, the suspension of these activities is not expected to have a material impact on its financial performance in the year ending June 30, 2022, which the Board believes will remain in line with market expectations.
The Company, however, estimates that it will experience a negative cash flow impact related to Gusar of approximately $850,000 in FY22 related to a combination of pending royalties and expected advance payments for wellhead which, due to the situation, are currently uncertain.
“As the company has performed well, it is currently expected that despite this situation, the year-end cash position will be broadly in line with expectations,” Plexus added.
On a more positive note, in addition to the positive progress with Cameron regarding the surface production wellhead license, Plexus is actively pursuing opportunities in its key target markets outside of Russia, particularly the UK and continental shelves. Europeans.
These include sales of production wellheads, several Plexus product developments using proprietary POS-GRIP technology, and recently reintegrated exploration wellhead leasing business following the recent signing of a collaboration agreement with Cameron International Corporation, a Schlumberger company. These ongoing initiatives are expected to gain momentum in the upcoming 2022/23 financial year.
“[Plexus] will continue to monitor the situation in Ukraine and the impact on Russian business activities and provide further updates as necessary,” the company concluded.
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