Enteq Upstream PLC (LON:NTQ) chief executive Andrew Law highlighted in the company’s full-year result continues to be well-positioned to support current and future activities.
The company’s results confirmed its robustness during a period described as “very challenging” and with a more positive outlook pointed to recent price stabilisation, rising US rig counts, international opportunities and new technology development.
In particular, the firm’s ‘SABER’ product is a focus as the company continues to develop on the IP and technology licenced from Shell.
“Enteq will continue to invest in the potentially game-changing SABER rotary steerable technology, as well as the other technology-driven engineering projects,” Law said in the results statement.
“The post Covid-19 market for Enteq is currently evolving, but the recent oil price stability, together with the steadily increasing US rig count, gives the board grounds for cautious optimism regarding the short and medium-term outlook."
In terms of financials, total revenue was reported at US$5.1mln in the twelve months ended March 31 2021 down from US$5.1mln in 2020 - with revenue from North America dropping to US$1.9mln and international revenue marked at US$3.2mln.
Gross profit margins reduced to 53% from 61%. Meanwhile, admin expenses reduced to US$3.6mln from US$7.3mln – as underlying overheads were shaved down to US$2.6mln from US$3.6mln.
It reported a post-tax loss of US$1.1mln, versus US$7.8mln in the prior year.
Stockbroker finnCap, in a note, said that Enteq has strong medium-term growth prospects given the recovery in its existing markets, growth in new geographic markets and the introduction of new products, whilst noting that the financial results showed that trading had stabilised with some recovery anticipated.