Enteq revenue doubles as new tech development continues

Energy services technology and equipment supplier Enteq reported first-half revenue of $4.9m (£4.12m) on Wednesday, up from $2.3m year-on-year.

The AIM-traded firm recorded adjusted EBITDA of $0.1m for the six months ended 30 September, swinging from an EBITDA loss of $0.6m a year earlier.

Its post-tax loss for the period narrowed to $0.8m from $1.2m, while its loss per share shrank to 1.1 US cents, from 1.8 cents in the same period of the 2022 financial year.

The company’s cash balance stood at $1.8m at period end, down from $5.3m in the prior year period.

Operationally, Enteq said its measurement while drilling revenues in the first half were up “significantly” on the same time last year due to North American activity, although at lower margins due to share of third-party equipment sales.

International sales were limited due to a “lagging” international market recovery and ongoing China shut-downs.

The firm said the ‘SABER’ engineering project had progressed, with the initial fleet of the latest design of SABER tools being built, while the complementary ‘MegaHop’ technology development was launched.

All initial testing of SABER achieved its objectives with “encouraging” results.

Active drilling in hard-rock environment had been scheduled at an independent test-site in Norway, and customer trials arranged.

Enteq said its Investment in SABER had continued using its existing balance sheet resources, to progress into the final engineering phase and SABER tool-build, resulting in the smaller cash position at the end of the period.

It said its cash position had risen to $2.5m since 30 September.

“Enteq continues to adapt to the changing global and industry dynamics by focusing on the higher margin potential in the significantly larger growth market of rotary steerable drilling where SABER can offer a differentiated and cost-effective alternative,” said chief executive officer Andrew Law.

“Progress continues with the build and test of the SABER system.

“Resources from the existing balance sheet are being used to support bringing SABER to commercialisation.”

At 1327 GMT, shares in Enteq Technologies were up 27.65% at 10.85p.

Reporting by Josh White for Sharecast.com.