20th Apr 2016 07:06
LONDON (Alliance News) - Enteq Upstream PLC Wednesday said it still expects to report full year results in line with expectations despite the challenging year for oilfield service companies, and said it has downsized its board to minimise costs.
The service company focused on providing drilling services to the oil and gas industry said its revenue and earnings before interest, tax, depreciation and amortisation in the financial year that ran to the end of March will hit expectations.
In addition to the fall in oil prices over the financial year, Enteq said rig activity in North America was around 60% less than a year earlier, demonstrating the severity of the current downturn.
"Enteq, in common with most businesses in the oil & gas sector, and in particular in drilling related products and services, has accordingly faced a challenging year," said the company.
In response to the current environment, Enteq said it has continued to reduce costs, but said this will result in an "exceptional, non-cash, slow moving inventory provision" of USD2.7 million in the recently-ended financial year.
The company provided a small insight into its balance sheet, reporting a cash balance of USD15.1 million at the end of March, which is up from USD14.1 million at the end of March 2015 and higher than the USD14.6 million at the end of September.
More importantly, Enteq said it has decided to downsize its board to "match its own structure with current activities" and to slash costs further, revealing that Chairman Neil Warner will leave the company after the annual general meeting to be held in September this year.
In addition, Chief Operating Officer Raymond Garcia will also step down from the board at the same time, but remain in his role based in Texas in the US, the company said.
Following the changes, Enteq said its board will be comprised of Ian Paterson as chairman, Robin Pinchbeck as its non-executive director, Martin Perry as the company's chief executive and David Steel as Enteq's finance director.
The company will reveal its full year results on June 15.
Enteq shares were up 2.2% to 13.80 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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