Upstream cuts hit oil firm
Plexus losses mount following investment plunge
Ben van Bilderbeek: decisive action
A sharp fall in investment in the oil and gas sector led to a slump in revenue and an increase in losses at equipment supplier Plexus Holdings.
Chief executive Ben van Bilderbeek said the company had taken decisive action in recent years to realign the cost base to the lower oil price environment.
There had been a significant reduction in the levels of capital investment across the upstream industry, particularly in relation to exploration drilling. Upstream investment fell 44% between 2014 and 2016.
“Such a sharp fall in investment has inevitably led to lower levels of exploration and consequently lower demand during this period for our best in class jack-up exploration wellheads,” said Mr Van Bilderbeek.
“This has been reflected in our full year financial results: 57.7% decrease in revenue to £4.75m for the year to 30 June 2017 (2016: £11.23m) with the UK and European revenues decreasing by 59.7%; an EBITDA loss of £2.48m (2016: £1.56m loss); a loss after tax of £5.7m (2016: £5.79m loss) after incurring £4.47m of depreciation and amortisation and a basic loss per share of 5.41p (2016: 6.39p loss per share).”
Whilst the company remains committed to distributing dividends to its shareholders, the directors believe that in view of the challenging oil price environment and resultant financial performance it is prudent to continue the suspension of the payment of dividends. The company will look to reinstate the dividend at the earliest opportunity.