A revival in US drilling activity has generated a sharp upturn in sales at oil well technology specialist Enteq Upstream PLC (LON:NTQ).
“Full year revenue and underlying EBITDA are expected to be materially ahead of its expectations,” said the company.
READ: Enteq Upstream Plc - Oil Capital Conference presentation
In its statement, Enteq added second-half turnover will rise by 25% over the US$4.2mln reported for the first six months, while full-year revenues will be 50% ahead of the US$6.5mln seen last year.
Cash balances at the March year-end will be about US$11mln.
Enteq specialises in measurement and directional technology that enables optimal production from a well.
Around 90% of revenue comes from the US, where shale production activity has rallied with the oil price.
Investec notes that growth accelerated through 2018 while there is good visibility into the March year-end.
The house upgraded its underlying earnings [EBITDA] by 10% to US$1.95mln for this year, though the next two years are unchanged as higher depreciation on the growing rental fleet will hold back the bottom line.
Enteq continues to invest in its rental fleet with four more added to take the total to 28, with several more kits likely to be added before year-end.
The US$11mln cash balance is worth 13p per share, adds Investec, which has a price target of 46p.
Shares jumped 12% to 28p.
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