Enteq Upstream PLC Trading Statement (7379U)
April 08 2021 - 01:00AM
UK Regulatory
TIDMNTQ
RNS Number : 7379U
Enteq Upstream PLC
08 April 2021
8 April 2021
Enteq Upstream plc
("Enteq" or the "Company")
Year-end Trading Update
Enteq, the energy technology company, today announces a trading
update for the financial year ended 31 March 2021.
During the year of COVID-19, the health and safety of our staff,
their families and the broader community has been our highest
priority. Through careful management and good practice, there have
been no significant operational issues during the outbreak.
Trading
Enteq's trading results for the year ended 31 March 2021 are
expected to be in-line with the Board's expectations, with revenues
in the region of $5m and a breakeven adjusted EBITDA*. The cash
balance as at 31 March 2021 was $8.1m ($10.2m as of 31 March 2020;
$8.8m as of 30 September 2020) reflecting planned on-going
investment during the year including the rental fleet, engineering
projects and product development.
The markets in which Enteq operate have also been affected by
both the dramatic swings in the oil price (from a 10-year low of
around $16 in April 2020 to around $60 at the end of March 2021)
and the fluctuations in the number of active drilling rigs in North
America, dropping from 1,025 in March 2019 to 664 in March 2020 and
then down to a low of 251 in July 2020; since recovering to the
current position of 430.
Following the recent oil price recovery and subsequent upturn in
activity in North America, Enteq has received repeat orders from
well-established operators in North America, in addition to further
Eastern Hemisphere progression in China, the Middle East and Asia.
Further sales have also been made for the supply of equipment into
the geothermal energy sector, a key market for Enteq. Revenue
related to a shipment made to Enteq's new strategic partner in the
Kingdom of Saudi Arabia has not been recognised during the
accounting period to March 2021, as the registration/accreditation
process remains in progress.
Technology investment
Enteq's SABER Tool (Steer-At-Bit Enteq Rotary Tool), a potential
'game changer' compared to current rotary steerable systems
available, will enable Enteq to enter the Rotary Steerable Drilling
service market which has an estimated world-wide annual value of
$1.8bn in 2021, of which approximately 40% is accessible by the
SABER Tool technology. The recent product launch resulted in a
significant level of enquiries for further technical information.
Field trials for this technology, which incorporates the patents
licensed exclusively from Shell and the licensed know-how, are
expected to be completed by December 2021.
Enteq intends to continue investing in engineering, testing,
building prototypes and setting up a rental fleet for the SABER
tool, whilst also pursuing other selected engineering projects.
Strong strategic technical partnerships continue to be maintained
and developed with third parties with the intention of producing
further commercial products in the medium term.
Board
The Board changes announced on 12 November 2020, came into
effect on 1 April 2021, with Andrew Law, becoming the Chief
Executive Officer ("CEO") and Martin Perry, the founder of Enteq
and previous CEO moving to the role of Non-Executive Chairman. The
other changes include Neil Hartley taking the role of Senior
Independent Non-Executive Director, with Iain Paterson, the
previous Chairman, continuing as a Non-Executive Director. David
Steel continues to serve on the Board as Chief Financial
Officer.
The Company expects to announce its results for the year ended
31 March 2021 on 7 July 2021.
For further information, please contact:
Enteq Upstream plc +44 (0)149 461 8739
Andrew Law, Chief Executive Officer
David Steel, Chief Financial Officer
Investec Bank plc (NOMAD and Broker) +44 (0)207 597 5970
Chris Sim, Patrick Robb, David Anderson
* A djusted EBITDA is defined as operating profit before
depreciation, amortisation, long term incentive charges and
exceptional items.
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