Enteq Upstream PLC - Trading Statement
("Enteq" or the "Company")
Year-end Trading and COVID 19 Update
Enteq, the oilfield services technology and equipment supplier, today announces an update for the financial year ended
The combined and inter-related impact of both the COVID-19 virus spreading and the recent drastic reduction in the oil price has had a significant impact on Enteq's current and future trading environment.
The health and safety of staff, their families and the broader community is our highest priority. Following advisory guidelines, our facilities in
Enteq trading results for the year ended
Due to the recent reduction in demand from the North American drilling market, combined with the future market uncertainties, Enteq intends to include a significant non-cash write down in the carrying value of both the intangible assets (capitalised research and development projects) and inventory holdings in the final reported accounts for this period. The total balance sheet (non-cash) reduction in relation to these write downs is expected to be approximately
Shortly after the dramatic fall in global oil price in
· reducing the number of our US workforce by approximately 60%, with group wide salary reductions implemented from
· releasing all contract staff and curtailing all discretionary spend.
In addition, in order to further conserve cash, all Board members have agreed to take a significant proportion of their remuneration in new Enteq shares. Enteq is also in the process of applying for governmental assistance in the
Enteq's secure balance sheet, combined with an adjusted cost base, will allow for continued investment in selected engineering development projects. Strong technical partnerships will also be maintained.
In the current circumstances it is not possible to give guidance as to the expected level of future trading in the medium term. Enteq's International markets, especially
The Company currently expects to report its full year results for the year ended
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* Underlying EBITDA is defined as operating profit before depreciation, amortisation, long term incentive charges and exceptional items.
This information is provided by RNS, the news service of the
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