25th Sep 2019 13:56
(Alliance News) - Enteq Upstream PLC on Wednesday said earnings in the first half of its current financial year are "likely" to be ahead of expectations.
The stock was trading 5.7% higher on Wednesday in London at 28.00 pence a share.
Ahead of its annual general meeting, the oilfield services technology and equipment supplier said its trading to date shows progressive growth, with revenue in the six months to the end of September to show more than 50% growth on the same period last year. Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization is expected to double.
Enteq said it continues to benefit from the ongoing success of its equipment rental program in the US despite some reduction in rig count during "recent months".
The AIM-listed company said it has made further gains in international markets, particularly in China. A recent confirmed order for use of Enteq's kit in the south west region of China for shale gas development - valued at USD500,000 - should be shipped by the end of September, the company noted.
Cash balances have reduced, however, Eqtec said, to USD10.7 million as of Wednesday from USD11.9 million as of March 31, as the company continues to invest in engineering projects and the rental equipment fleet.
"Enteq has delivered sequential growth for each equivalent period over the last three years," highlighted Chief Executive Martin Perry.
"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," added Perry.
Entec plans to release its interim results on November 14.
By Evelina Grecenko; [email protected]
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