Enteq Upstream PLC sees growth in China and Middle East

The investment in building partnerships, bringing engineering projects closer to market and developing a broader international customer base are beginning to show the anticipated returns

CEO Martin Perry 

What the company does

() is a provider to the global oil and gas directional drilling market. The company designs and produces high-end robust measurement while drilling (MWD) systems and associated components.

Its products are as follows:

• Vibmon: This monitors downhole shock and vibration in real-time, enabling drillers to avoid costly downhole equipment failure.
• Directional Interface Module: Handles the acquisition, formatting and telemetry of downhole data to the surface.
• Directional Sensor Module: This unit incorporates accelerometers and magnetometers to provide temperature-corrected positional data.
• Pulser Driver and DC Drive Pulser: In a typical MWD system, data is transmitted to the surface using mud-pulse telemetry, as a system which encodes downhole data in pressure pulses through the drilling fluid. The Pulser Driver drives this system

*It also has products that aid horizontal drilling and has developed new technologies such as PowerHop, At Bit and Rotary Steerable Technology.

How’s Enteq performing?

Results for the fiscal year just ended are expected to be in line with expectations. 

The energy technology expects to report revenues in the region of US$5.00mln for the year to the end of March and to break even at the EBITDA (underlying earnings level).

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.

Cash at the end of the reporting period stood at US$8.1mln, compared to US$10.2mln a year earlier and US$8.8mln at the end of September 2020.

What the boss says: Martin Perry, chief executive

“The USA land shale drilling market has significantly reduced with on-going over capacity likely. Outside North America, despite the effects of oil price uncertainties and COVID-19, Enteq has succeeded in developing a strong customer base in China and the Middle East with good further opportunities.

“New technology will drive the efficiency of future drilling in all markets, and Enteq has some exciting product release plans which have the potential to change the scale of our business.”

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What the analyst says: Ed Stacey, Proactive Research

“H1 revenues were US$2.6mln and the period-end net cash position was US$8.8mln.

“We believe that this cash position is sufficient for the company to trade through the current oil and gas industry slowdown and to continue financing new product developments.”