Enteq trading in line with management expectations

Oilfield services technology and equipment supplier Enteq updated the market at its annual general meeting on Wednesday, reporting that year-to-date trading was in line with management expectations, building from the levels of revenue and adjusted positive EBITDA achieved during the second half of the previous year.

The AIM-traded firm said incremental sales had been made to new customers for rental equipment in North America and measurement while drilling (MWD) systems in the international markets.

It said it had maintained its investment in technology, including a collaborative development of a seamless ‘At-Bit’ solution, which was now commercially available.

That provided critical measurements from immediately behind the drill bit for faster drilling responses, the firm explained.

“Spending has increased on internal R&D projects as well as adding resource to the previously announced UK government funded project,” Enteq’s board said in its statement.

“Patent applications relating to both novel methods of data communication and power transfer in the drill-string have now been published and further patent applications are in the process of being filed.”

Since the year-end, further investment of cash had been made in the rental fleet of MWD systems and in strategic inventory.

The head count in the business was said to be “cautiously” increasing, primarily in the areas of R&D and production.

“If the sector remains stable, Enteq is confident of further profitable market penetration and will continue to invest in all areas of opportunity.

“The company plans to release its interim results for the six months ending 30 September on 15 November.”