viewEnteq Upstream PLC

Enteq Upstream drilling into high-growth opportunities

  • Designs and produces high-end robust measurement while drilling systems
  • At the last update it said it was trading ahead of expectations
  • Analyst Ed Stacey expects the company to grow at pace over the next three years
Pulse - workers on a drill rig

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

CEO Martin Perry 

What the company does

Enteq Upstream PLC (LON:NTQ) provider to the global oil and gas directional drilling market. The company designs and produces high-end robust measurement while drilling (MWD) systems and associated components.

Its products are as follows:

  • Vibmon: This monitors downhole shock and vibration in real-time, enabling drillers to avoid costly downhole equipment failure.
  • Directional Interface Module: Handles the acquisition, formatting and telemetry of downhole data to the surface.
  • Directional Sensor Module: This unit incorporates accelerometers and magnetometers to provide temperature-corrected positional data.
  • Pulser Driver and DC Drive Pulser: In a typical MWD system, data is transmitted to the surface using mud-pulse telemetry, as a system which encodes downhole data in pressure pulses through the drilling fluid. The Pulser Driver drives this system

*It also has products that aid horizontal drilling and has developed new technologies such as PowerHop, At Bit and Rotary Steerable Technology.

How’s Enteq performing?

Chief executive Martin Perry has highlighted the company’s advances in China and its recent deal with Shell as examples of ongoing progress.

“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,” he said.

In an update on trading, investors were told revenue and underlying earnings (EBITDA) will likely be ahead of management expectations for the first half.

In the US, it continues to benefit from the ongoing success of the equipment rental programme, despite some reduction in the rig count over recent months.

Outside the States, it had enjoyed further gains in China where it now expects to generate around 30% of group revenue for the first half. It has been boosted by a recent order to use Enteq's kit in a shale gas development project the south-west region of the country.

The recently-announced development project with Shell, meanwhile, will further enhance Enteq's product range.

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

As at September 25 it had US$10.7mln of cash. Financial results for the first half of 2019 are due to be released on 14 November.

What does the future hold?

Proactive Research’s Ed Stacey is forecasting revenue growth of 20% annually for the period to 2022 and 28% growth in EBITDA. CLICK HERE FOR THE FULL REPORT 

Driving the top- and bottom-line advances are investment in new, innovative well technology and expanding the business’ geographic reach.

Quick facts: Enteq Upstream PLC

Price: 24 GBX

Market: AIM
Market Cap: £15.72 m

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Enteq Upstream PLC's international strategy 'delivering real results'

Proactive Research analyst Ed Stacey gives his view on Enteq Upstream PLC's (LON:NTQ) interim results to September 2019 which saw revenues increasing 58% and adjusted underlying earnings (EBITDA) up 143% year-on-year. Stacey says major new customer wins in China reflect the company's...

on 15/11/19

3 min read