Year End Update

RNS Number : 6162L

Enteq Upstream PLC

29 April 2015

 

29 April 2015

Enteq Upstream plc

("Enteq" or the "Company")

Year-end update

Enteq, the oilfield services technology and equipment supplier, today provides an update for the year ended 31 March 2015.

As reported in the Company's trading update of 15 January 2015, the second half of Enteq's financial year ending 31 March 2015 was, in common with most drilling-related service and technology businesses, a difficult trading period as a result of substantial reductions in drilling rigs operating in North America and subsequent excess capacity of Measurement While Drilling equipment in the market.

The Board expects to report both full year revenues in line with its expectations and that the underlying EBITDA* of the business remained positive.  The cash balance as at 31 March 2015 was $14.1m, slightly higher than the $13.8m reported as of 30 September 2014 and in-line with the $14m reported on 15 January 2015.

Enteq has implemented cost reductions across the Company in order to protect its profitability and cash reserves until the drilling market stabilises.  A non-cash impairment of goodwill and intangible assets will be taken and the Board expects to provide for one-off potential bad debts of c.$800k.

Sales opportunities outside North America continue to be pursued and co-operative technology agreements further enhance the product offering.

The Company anticipates reporting its full year results for the year ended 31 March 2015 on 16 June 2015.

For further information, please contact:

Enteq Upstream plc	[phone]
Martin Perry, Chief Executive Officer
David Steel, Finance Director
Investec Bank plc (NOMAD and Broker)	[phone]
David Anderson

* Underlying EBITDA is defined as operating profit before depreciation, amortisation, provisions and exceptional items. 

 

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