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Enteq Upstream - Knowing the drill

Enteq upstream (LON:NTQ) is a leading supplier of high-end systems and products for measurement while drilling applications in the oil & gas industry.

The company has issued a trading update for the half-year period to September 2019. The company reports that revenues are expected to be up +50% year-on-year, with adjusted EBITDA doubling for the period. These figures are ahead of previous management expectations.

The revenue figure demonstrates that Enteq continues to deliver growth well in excess of its end-market. In particular, Enteq benefited from large orders from China, which has been a target market for growth.

In this report we examine some of the growth drivers for Enteq in the coming years. They include:

Expanding technology base. The company is pursuing an ambitious strategy of expansion of its product portfolio. We examine some of the key developments in terms of in-house product developments, collaborations, and IP acquisition.

Expanding geographic reach. Within the North American market, Enteq products have established a strong reputation for robustness, reliability, and functionality. However, the company under-indexes outside of North America. The company has begun to pursue a strategy of greater geographic expansion (details p6), which has been delivering results, as demonstrated by the H1 trading update.

We provide a detailed breakdown of our growth expectations, in revenue terms, and how this translates into earnings, on pages 7-8.

Quick facts: Enteq Upstream PLC

Price: 29.5 GBX

AIM:NTQ
Market: AIM
Market Cap: £19.32 m
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What's in the report?

Financial results and forecasts
Growth drivers
Management
Market conditions
Milestones & inflection points

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Enteq Upstream 'delivering growth well in excess of its end-market'

Proactive Research analyst Ed Stacey discusses Enteq Upstream's (LON:NTQ) first half trading. The company reported that revenues are expected to be up +50% year-on-year, with adjusted EBITDA doubling for the period.  These figures are ahead of previous management...

3 weeks, 3 days ago

14 min read