Enteq Upstream PLC AGM Trading Statement (3587A)
September 29 2020 - 2:00AM
UK Regulatory
TIDMNTQ
RNS Number : 3587A
Enteq Upstream PLC
29 September 2020
Enteq Upstream plc
("Enteq" or the "Company")
AGM Trading Statement
Enteq, the energy services technology and equipment supplier,
will make the following statement at its Annual General Meeting
which takes place at 12.00 noon today at St Mary's House, The
Broadway, Amersham, Bucks HP0 7UT.
Enteq reports a satisfactory trading recovery from the mid-March
2020 oil price slump and the effects of COVID-19. Enteq's half year
revenue and adjusted EBITDA are likely to be in line with
management expectations.
Enteq continues to focus on sales opportunities outside its
traditional North American onshore shale-based market. The
proportion of revenue generated outside North America in the half
year is expected to be approximately 75%, an increase from both 36%
in the period to September 2019 and 21% for the second half of the
year to 31 March 2020.
The North American market remains extremely subdued with the
number of active drilling rigs continuing to fall from 1,025 at the
start of April 2020 to the current level of 261, with resulting
over capacity of equipment in the market. Enteq's rental revenue
from the North American market is expected to continue until the
current financial year end at reducing levels with limited renewals
expected.
The majority of international sales in the first half of this
year were into the Chinese market where strategic drilling for gas
in challenging downhole conditions can be satisfied by Enteq
equipment. The $1.0m contract announced in May 2020 to a new
Chinese customer was fulfilled with the equipment successfully
operated, and the customer has given an indication of further
orders. The $0.9m contract announced in August 2020 to a new
customer in Saudi Arabia has been delivered, however, the revenue
will only be recognised by Enteq when the equipment completes the
Saudi Aramco accreditation process.
The Rotary Steerable System development program that includes
elements licensed from Shell continues to meet the project
milestones, with prototype deployment scheduled for 2021. A
high-speed data transmission project has also commenced with a
partner based in Poland.
Cash balances have reduced from $10.2m at 31 March 2020 figure
to $8.8m as of today, as Enteq continues to invest in engineering
projects and working capital.
The Company plans to release its interim results for the six
months ending 30 September 2020 on 12 November 2020.
Martin Perry, CEO, commented
"It is pleasing that Enteq continues to expand its market share
and opportunities outside North America. The significant contract
awards in both China and Saudi Arabia, demonstrate that Enteq's
products continue to offer new customers a proven, cost effective
and reliable solution for their drilling requirements. Investment
in new and differentiated technology will enable Enteq to address a
substantially larger sector of the world market."
For further information, please contact:
Enteq Upstream plc +44 (0)149 461 8739
Martin Perry, Chief Executive Officer
David Steel, Finance Director
Investec Bank plc (NOMAD and Broker) +44 (0)207 597 5970
Chris Treneman, Patrick Robb, David Anderson
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END
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