Last checked at 
LONDON (Alliance News) - Enteq Upstream PLC said Thursday it doubled its half-year revenues to USD10.6 million during the period as it benefited from a recovering North American directional drilling market.
The oil and gas drilling technology firm said its half-year performance reflects significant improvements in a number of its divisions as well as gaining market share.
In its interim results for the six months to September 30 2013, Enteq reports encouraging results;
earnings before interest, taxes, depreciation, and amortisation for the drilling tools division was USD2.3 million, up form USD1.6 million during the comparable half last year, generating consolidated adjusted earnings before interest, taxes, depreciation, and amortisation of USD0.5 million, up on USD0.3 million last year.
The firm narrowed its pretax losses to USD2.5 million during the six months from USD3.5 million last year.
Enteq also confirmed adjusted earnings per share at 0.4 cents, down on the 0.5 cents declared in 2012. The firm said its cash balance, as at September 30, had reduced to USD21.3 million from USD25.8 million during the comparable period last year.
The company said that the recorded successful integration with its acquisitions during the period has enabled delivery of full measurement while drilling systems for sales and rental, and that its additional sales resources and infrastructure sites in Houston, Calgary and E.Hemisphere are gaining customers.
The firm acquired XXT and KMS & Pro-Flow - which serve the measurement while drilling market - last year, in line with Enteq's strategy to acquire businesses that could have value added to them by integrating with Enteq offerings. The firm said, "In the first half of this financial year, the acquired businesses have been strengthened in terms of physical infrastructure, management processes, product offering and sales capacity. These necessary efforts are starting to bear fruit."
Trading remains in line with management expectations for the full-year, said the firm, with the encouraging period-on-period revenue growth indicating a good market share growth in a stabilising North American markets, said Enteq. The company also expects further performance improvements as operational leverage in the business continues, adding that market shares gains as a result of sales and rentals of complete systems, development of new technologies and entry into new markets are expected top generate further growth.
Martin Perry, CEO of Enteq, said, "The results shown in the first half of this year are indicative of a strong product line performing well in a recovering market. The acquired businesses have been strengthened in terms of physical infrastructure, management processes, product offering and sales capacity. These investments are beginning to show real returns and position the business well for further growth. The global market for hydrocarbon extraction and the need for advanced technology and products to enhance the capability of oilfield service companies continues to support the Enteq business model and medium term growth strategy."
The stock was trading down 13.57% at 53.8 pence per share Thursday morning.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
Copyright © 2013 Alliance News Limited. All Rights Reserved.
