Enteq Technologies Share Discussion Threads

[eezymunny] 01/7/2020 10:12

They've increased cash balances in the past by running down inventories in bleak times. All well and good but tangible NAV has gone $m 32, 29, 24, 23, 22, 22 and now 17. No dividends paid. Retained earning a loss of $76m.

The last few years have been bleak indeed. Hopefully they have some decent tech up their sleeve but it's been all jam tomorrow since I've been following....

[p1nkfish] 01/7/2020 10:04

Interesting to see how the chart develops and if the recent shape becomes a cup & handle. TBD.

[p1nkfish] 01/7/2020 10:03

Well it's a hold from me, really depends on your average price.

Results make it clear management have a firm hand on the rudder and know their industry and will steer through this period.

If it doesn't kill them it will only make them stronger as competitors fold.

Last man standing wins big.

[dolittle1] 01/7/2020 09:54

Price could tickle down in absence of further newsflow. Although it is true they have divested into China and Saudi, majority of income still comes from US, where unfavourable market persists esp in the fracking sector.
They also hint that they will invest further into their products, implying a drain on the cash balance.
Probably a hold but not a buy until there is further clarity.

[apad] 01/7/2020 09:44

I admire your patience, riv. 😊
Your points are spot-on, but god's toenails I am so bored with this company.
As an engineer I admire them and would love to own it.
As a shareholder it's like waiting for paint to dry and they are un-tradeable.
Sorry about the moan and good luck with your tactic.
apad

[rivaldo] 01/7/2020 09:36

The results are as already signalled, with $3.1m EBITDA, up from $2.5m EBITDA last year.

NTQ have $10.2m net cash, against the £9.3m m/cap.

The amount of non-US revenues has ballooned from $1m up to $3.2m and gives NTQ greater variety of customer protection than before.

They've taken the opportunity to kitchen sink everything in one hit of write-offs, which should leave a clean Balance Sheet going forward.

NTQ have the advantage of having extremely capable management who've been through all this before. They've already successfully navigated previous oil price collapses and preserved (and from memory actually increased!) the cash pile through it. Judging by the extensive job and wage cuts already implemented in March they'll likely be able to do the same this time.

The current environment is obviously incredibly difficult. If the share price slips back again around the lows then I will probably pick up more ready for the inevitable upturn at some point, or progress on the Shell license agreement.

[aldoeldo] 01/7/2020 09:28

www.proactiveinvestors.co.uk/companies/news/923179/enteq-upstream-reports-strong-international-growth-as-it-continues-to-invest-in-new-technologies-923179.html

very positive and sound confident management

[eezymunny] 01/7/2020 09:12

The results are dreadful. The balance sheet has taken a massive hit. The outlook is desperate at current oil prices IMO.

Just that "Enteq will maintain investment in potential game-changing technology which has the potential to address the demands for reduced costs in the future drilling environment" that keeps it on my watchlist. Whether a minnow like this has the resources to produce something better than the very big competitors remains to be seen...

[babbler] 01/7/2020 08:43

Guess market didn't agree.

[babbler] 01/7/2020 08:01

Agreed. Looks good. Bad behind them. Good to come.

[swizz] 01/7/2020 07:51

As expected a very solid set of numbers, Decisive action has been taken and with strong international growth, substantive technical partnerships and a very healthy contingency, they are very well positioned for the new normal,....GL S

[1gw] 01/7/2020 07:50

Pleasingly upbeat, considering, I think.

[masurenguy] 01/7/2020 07:22

Results for year ending 31 March 2020

Key features

-- Growth in both revenue and adjusted EBITDA
-- International revenue up from 9% to 30% of total
-- Adjusted EBITDA(*) margin up from 24% to 28%
-- Continued investment in new technologies and rental fleet
-- Downturn in markets reflected in major write-down of intangible assets ($4.2m) & inventory ($2.7m)

Outlook

-- US markets uncertain of short-term recovery; oil price stabilisation will support international opportunities
-- Focussed investment in new technology
-- Emphasis on maintaining a strong balance sheet

Martin Perry, CEO of Enteq Upstream plc, commented:"Enteq is well positioned to support current activities for the foreseeable future. In addition, Enteq will maintain investment in potential game-changing technology which has the potential to address the demands for reduced costs in the future drilling environment. Even in a medium term, reduced oil price, post Covid-19, world there will continue to be a demand for hydrocarbons and increased efficiency in drilling will be needed for the industry. With a strong balance sheet and a continued appetite to invest in focused new product development Enteq is well positioned to benefit from a return to market stability."

[1gw] 30/6/2020 18:50

Good climb ahead of results. Optimistic about tomorrow but I did sell a few this afternoon - trying to learn my lesson about liquidity and take a profit on my most recent purchase, if a loss on my average purchase price.

[rivaldo] 30/6/2020 16:06

Cheers for the reminder Cheshire Man.

Incongruous to see NTQ climbing nicely on the day Chesapeake file for Chapter 11, but I suppose it's the hope factor re the results.

We know those results will be pretty good as above, especially the $10.2m cash pile. It's the outlook and current trading which will be most important. Hopefully there will be positive noises re more international sales and commercialisation/sales of the various new products.

[cheshire man] 30/6/2020 09:16

Results tomorrow

As announced in its trading update issued on 8 April 2020, Enteq's trading results for the year ended 31 March 2020 are still anticipated to be in-line with the Board's previously announced full-year expectations, with revenues in the region of $11m and Underlying Adjusted EBITDA* of around $3m. The cash balance as at 31 March 2020 remains unchanged at $10.2m ($11.9m as at 31 March 2019; $10.7m as at 30 September 2019) reflecting planned investments made during the year in the rental fleet, engineering projects and product development.

[rp19] 24/6/2020 15:41

MYX this week cited an up tick in middle east activity in relation to their business which provides services to the oil and gas industry. Be interesting to see if NTQ cite similar in their upcoming results.

[swizz] 24/6/2020 08:48

Mg, agreed and I would also suggest increased focus outside of oil,....GL S

[masurenguy] 23/6/2020 07:40

Important that Enteq focuses upon conventional oil business opportunities at this time !

"US shale companies could be forced to write down $300 billion of their assets this year, which could trigger insolvencies as operators begin to account for the oil-price collapse." FT, 23 June.

[swizz] 17/6/2020 13:29

Perhaps there is still some further interest in the background, as they are currently bidding 14p for 150k,...GL S

[rivaldo] 17/6/2020 11:27

Buying coming in at the full 15p offer now.

[swizz] 16/6/2020 15:49

It looks as if our background buyer is back this afternoon, as there has been a significant move on RSP, a delayed buy print after close?,....GL S

[masurenguy] 12/6/2020 16:24

RNS: 12 June

Publication of the Group's full year results for the year ended 31 March 2020 is subject to a two-week delay and will now be announced on 1 July 2020. This is due to the additional time required by the Group's auditor, Grant Thornton UK LLP, to complete its work in a time of unprecedented uncertainty due to both COVID-19, the continuing unsettled markets for oil and gas drilling activity worldwide, and follows guidance from the FCA on corporate reporting timetables.

As announced in its trading update issued on 8 April 2020, Enteq's trading results for the year ended 31 March 2020 are still anticipated to be in-line with the Board's previously announced full-year expectations, with revenues in the region of $11m and Underlying Adjusted EBITDA* of around $3m. The cash balance as at 31 March 2020 remains unchanged at $10.2m ($11.9m as at 31 March 2019; $10.7m as at 30 September 2019) reflecting planned investments made during the year in the rental fleet, engineering projects and product development.

As previously announced, Enteq will include a significant non-cash write down in the carrying value of both the intangible assets (capitalised research and development projects) and inventory holdings in the final reported accounts for this period. The total balance sheet (non-cash) reduction in relation to these write downs is expected, subject to final review, to be approximately $6.9m.

[rivaldo] 11/6/2020 22:45

Great to see Miton increasing to over 4% with 2.73m shares (they seem to be on a bit of a spree at present - they've also just bought into REAT, another of my holdings).

If they've cleared out any sellers then the share price could get interesting given the low free float:

Major Shareholders

Canaccord Genuity Group 8,800,000 13.4
Directors & Employees 7,264,696 11.1
Allianz 6,150,000 9.4
Soros Fund Management 4,953,818 7.6
Octopus Investments 2,919,000 4.5
Investec Securities 2,897,923 4.4
Hargreaves Lansdown 2,535,101 3.9
Church House Investments 2,449,150 3.7
Premier Miton Asset Management 2,434,012 3.7
Killik Asset Management 2,091,747 3.2
Columbia Threadneedle Investments 2,008,642 3.1

That list represents 68% of the shares in issue.

[swizz] 11/6/2020 18:12

1GW, yep, it could be, good to note a decent buy print for 150k just after close,...GL S