Monday, Oct 19, 2009
(Adds analyst comment, background, share price.)
By Iain Packham
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)-- Plexus Holdings PLC (POS.LN) said Monday it has been awarded a second contract with Dubai Petroleum Establishment, an oil and gas company, to provide its Pos-Grip wellhead technology, but didn't disclose any financial details.
Under the contract Dubai Petroleum will use Plexus' 10,000 psi Pos-Grip wellhead technology with mudline suspension systems to explore offshore United Arab Emirates in the Arabian Gulf.
The oil and gas engineering services business, which supplies wellhead and mudline suspension equipment for exploration and production applications, said it expects the contract to start in the first half fiscal 2010.
Plexus didn't reveal the number of wellheads supplied, the duration or value of this latest contract.
Plexus was awarded the first contract, worth GBP0.13 million plus service charges, on June 17.
Greig Aitken, an analyst at Brewin Dolphin said he is encouraging to see Plexus pick up more contracts in the Middle East, adding that capital expenditure of Natural Oil Companies has been relatively unscathed during the downturn.
Aitken said he expects the company to report full year earnings Tuesday in line with his previous expectations. He has pencilled in pretax profit of GBP1.8 million for the year ended June 30 and sales of GBP15.3 million.
Aitken has a "buy" rating on the stock and a price target of 51 pence, both of which are under review.
Shares at 0920 GMT up 0.5 pence, or 1.2%, at 41.0 pence in a slightly higher Alternative Investment Market - up 0.41%
Company Web site: www.posgrip.com
-By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com
(END) Dow Jones Newswires
19-10-09 0925GMT
