Last checked at 18 Apr 2018 07:00
18 April 2018
Enteq Upstream plc
("Enteq" or the "Company")
Year-end Trading Update
Enteq, the oilfield services technology and equipment supplier, today announces an update for the financial year ended 31 March 2018.
The Board is pleased to report that both full year revenues and underlying EBITDA are expected to be significantly ahead of its expectations. The cash balance as of 31 March 2018 was $15.5m, up $0.2m compared to 31 March 2017.
Market conditions have stabilised during the year to 31 March 2018 with the number of drilling rigs operating in North America rising from approximately 840 at the start of April 2017 to the current level of approximately 1,000. The price of West Texas Intermediate oil has risen from around $49 per barrel at the start of the financial year to around $67 currently.
Enteq has continued to invest in its manufacturing capabilities, product development and increasing its rental fleet during the year.
Enteq has also continued to develop markets outside North America, including further operational success in Saudi Arabia and the fulfillment of the initial contract in Indonesia relating to geothermal drilling announced in December 2017.
Enteq has further improved operational efficiency and enhanced customer interaction through transferring electronic component manufacturing from leased premises in California to the Enteq's owned Houston facility.
In light of these improved market conditions, prudent management and Enteq's ongoing investments Enteq is well positioned to take advantage of potential opportunities.
The Company expects to report its full year results for the year ended 31 March 2018 on 13 June 2018.
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, George Price
* Underlying EBITDA is defined as operating profit before depreciation, amortisation, provisions and exceptional items.