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Enteq Upstream highlights China and Shell deal as it says first half will beat expectations

Revenue and earnings (EBITDA) will likely be ahead of management expectations for the first half, Enteq highlighted ahead of today's AGM.

Enteq Upstream PLC - Enteq Upstream’s ‘ongoing progress’ is driving an expectation-beating first half

Enteq Upstream PLC (LON:NTQ) highlighted advances in China and a recent deal with Shell as the company flagged an expectation beating first half performance ahead of Wednesday’s AGM.

Trading in the year to date ‘shows progressive growth’ and the financial performance for the six months, to 30 September, will show revenues more than 50% higher than the same period of 2018.

Revenue and earnings (EBITDA) will likely be ahead of management expectations for the first half, Enteq highlighted.

READ: Enteq Upstream licences Shell's directional drilling prototype

"Enteq has delivered sequential growth for each equivalent period over the last three years,” Perry said.

“The investment in building partnerships, bringing engineering projects closer to market and developing a broader international customer base are beginning to show the anticipated returns,” Perry said.

“Recent advances in China and a new technology agreement with Shell demonstrate the potential of our business."

The company noted that in the United States it continues to benefit from the ongoing success of the equipment rental program, despite some reduction in the rig count over recent months.

In international markets, it described further gains in China where it now expects to generate around 30% of group revenue for the first half. It is boosted by a recent order to use Enteq's kit in a shale gas development project the South West region of the country, with the contract worth around US$500,000.

The recently announced development project with Shell, meanwhile, will further enhance Enteq's product range, thus leading to a significantly increased market potential.

Elsewhere, the company noted that ongoing technology partnerships are now delivering commercial returns and are contributing to sales opportunities.

It today has some US$10.7mln of cash and the company said it continues to invest in engineering projects and its equipment fleet. Financial results for the first half of 2019 are due to be released on 14 November.

Quick facts: Enteq Upstream PLC

Price: 13 GBX

Market: AIM
Market Cap: £8.56 m

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