Last checked at 15 Sep 2015 07:00
Enteq Upstream plc
("Enteq" or the "Company")
AGM Statement
Enteq, the oilfield services technology and equipment supplier, will make the following statement at its Annual General Meeting later today:
Enteq continues to operate in a market dominated by the down-turn in oil prices. The bench mark oil price for North America, West Texas Intermediate, in US$ per barrel, stands at 45.6 versus 47.7 at the end of March 2015 and 91.2 at the end of September 2014. The current rig count in North America is approximately 850 rigs, versus 1,048 rigs at the end of March 2015 and 1,931 rigs at the end of September 2014. Along with other companies operating in the up-stream drilling sector, Enteq is influenced by the overhang of capacity of equipment in the North American drilling market.
In North America, the Group's year-to-date revenue performance related to drilling activity reflects the rig count reduction; with new customer opportunities generally being for rental equipment. Outside North America, one-off sales of systems have continued. Further development opportunities have been identified in Russia and both the Middle and Far East, whilst the Company continues the development of its technology platform.
Overall the market and, therefore, revenue remains unpredictable, but the Company has taken significant cost-cutting measures in order to protect underlying EBITDA, which the Board expects to be in line with its expectations for the six months ending 30 September 2015. As a result of the Board's focus on cash, the Company's cash balance, as at 14 September 2015, was US$ 14.4 million, up US$ 0.3m on the 31 March 2015 balance of US$ 14.1m (US$ 13.8 million as at 30 September 2014).
The Board and management of Enteq continue to believe in the potential for both a recovery and a strong long term future, in a stabilised market environment.
The Company plans to release its interim results for the six months ending 30 September 2015 on 13 November 2015.
For further information, please contact:
Enteq Upstream plc +44 (0)1494 618741
Martin Perry, Chief Executive Officer
David Steel, Finance Director
Investec Bank plc (Nomad and Broker) +44 (0) 20 7597 4000
Chris Treneman, Patrick Robb, David Anderson