Oil service firm Plexus shrugs off short-term impact of weak prices

LONDON, Dec 11 (Reuters) - North Sea-focused oil service provider Plexus (NasdaqGS: PLXS - news) said on Thursday it did not expect its business to be hit by weak oil prices this year or beyond as it sees continued demand for its niche equipment.

The supplier of specialist oil and gas drilling technology, which is listed on London's Alternative Investment Market (AIM), said it expected the sharp decline in oil prices to be temporary and that long-term investments in the sector would sustain demand for Plexus' services.

"Although we are of course taking these global dynamics very seriously, I must stress that we currently remain confident for this year and beyond," Plexus Chairman Jeffrey Thrall will say at the company's annual general meeting on Thursday.

Major oil companies have already announced spending cuts on the back of the steep drop in oil price to close to $60 per barrel from around $115 in June.

Thrall will also stress in his speech that the shale sector is expected to take the biggest hit from weak oil prices, an area the company is not currently involved in.

Plexus' wellhead equipment for complex high pressure high temperature (HPHT) fields will remain in demand as operating costs on these projects are comparatively lower than on shale wells, Thrall will say.

"Plexus uniquely is able to offer significant time savings to operators which is now more important than ever in this age of careful cost control," he said in prepared comments that were circulated to the market.

(Reporting by Karolin Schaps; Editing by Mark Potter)