Trading Statement

RNS Number : 1814U

Enteq Upstream PLC

14 October 2014

 

Enteq Upstream plc

("Enteq" or the "Company")

Trading Update

Enteq, the oilfieldservices technology and equipment supplier, confirms that trading for the six months ended 30 September 2014 has been in-line with management's full-year expectations.  Revenues were approximately 45% of the full year's expectation with gross margins and overhead as planned.  Net cash in the business remains at approximately $14m following some investment in inventory, rental assets and further platforms for growth.

Revenue and adjusted EBITDA during the period has shown significant growth over the same period in the previous year.

The North American land rig count remains stable at levels slightly ahead of this time last year despite a recent decline in oil prices. Analysts predict that a medium term increase in demand for gas will cause resumption in drilling in the gas producing shales.

Enteq has continued to add new Directional Drilling and Measurement While Drilling customers in North America and continues to gain repeat business from a number of the major independent directional drillers in North America.

In the first half, Enteq has completed its first significant system shipments to both China and the Middle East, an important milestone for the business.  Subsequent follow-on sales to these customers have also already been completed.

New technology progress includes the commercialisation of a new data transmission system (pulser), new software developments and progression of further technology licensing opportunities.

Enteq plans to release its full interim financial statements for the six months ended 30 September 2014 on 18 November 2014.

Martin Perry, CEO, commented: 

"The first half of this financial year has demonstrated further organic progress in the business as a result of on-going investment, integration and market development. Our first sales into the high potential Chinese and Middle Eastern markets represent a notable development in our sales and marketing efforts."

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]

Chris Treneman, Patrick Robb, David Anderson

Vigo Communications                                            [phone]

Peter Reilly, Patrick d'Ancona

 

END

 

 

TSTDXLFFZBFXFBF