Enteq Technologies Share Discussion Threads

[firtashia] 23/6/2017 16:16

OPEC have sought to drive US shale oil into the ground (forgive the pun) and their agreement to cut back production earlier this year is an admission of failure. But the minute the oil price rises so US shale oil production increases. The Saudis were stupid to take on Uncle Sam in the first place and I dont think Trump and ex- Exxon's Rex Tillerson are going to let them off the hook.



Lets hope the civilised world sees the benefit of buying shale oil from the US rather than their money continiung to prop up the regimes of evil in the Middle East & Russia.

[rivaldo] 23/6/2017 12:06

Amazing the difference that 53,000 shares bought within 3 minutes of each other can make :o))

[pugugly] 17/6/2017 11:04

Possibly further bad news on long term demand for oil services companies
The Forward Curve for Oil Prices Suddenly Looks Awful for OPEC,
Brent, WTI trade in full contango as consumers fix forward
Bearish U.S. stockpile data, gloomy IEA report don’t help
(Message received from full article oil prices lower for longer. Not good news)

[1gw] 15/6/2017 13:58

brwo349 - I agree, having now had time to look through them in more detail. A quite remarkable turn round in revenue performance, but with very little explanatory comment in the results, as far as I could see, beyond a comment in the chairman's statement that "market conditions have seen some improvement since the beginning of 2017".

1HFY17 $0.7m revenue (vs $3.0m in 1HFY16)
2HFY17 $4.0m revenue (vs $3.3m in 2HFY16)
FY17 $4.8m revenue (vs $6.3m in FY16)

So if 2H is indicative of the FY18 run-rate then that sets up FY18 rather nicely. Even better if the turnaround only really came through in the last 3 months of FY17 as per the chairman's comment on calendar year 2017.

I also noticed the disclosure of major customers (10%+ of revenue) is fairly revealing. It shows that their 4 biggest customers accounted for about 75% of the year's revenue:

$1.2m
$1.0m
$0.9m
$0.5m

So a small company appearing to be pretty dependent on a very small number of customers. But great balance sheet, good 2H and to me it really does look well set for any sustained recovery in the US drilling market.

[rivaldo] 14/6/2017 11:49

Yep, steady as she goes ready for an upturn. The downside is protected by the very well looked-after cash pile, whilst there's serious upside if and when the sector continues to solidify and cap ex starts to improve.

A brief summary from Malcolm Graham-Wood today:



"An old friend, Enteq Upstream has results today and due to cost cutting and generally careful progress the losses are reduced. The company say that they have retained a ‘sustainable business in difficult market conditions’ and have looked after the cash, they still have $15.3m for sunnier days. Another one to keep an eye on."

[brwo349] 14/6/2017 08:38

Very good results. Unexpectedly so. The second half of the year was much better than the first.

[1gw] 14/6/2017 07:53

I was hoping for a better outlook.

But, by my calculations there's still about 20p/share cash and 30p/share net assets, so it feels like there's a lot of downside protection in the current share price.

[masurenguy] 14/6/2017 07:44

RNS Number : 9958H
Enteq Upstream PLC
14 June 2017

Final results for the year ended 31 March 2017

AIM traded Enteq Upstream plc, the oil and gas drilling technology company, today announces its financial results for the year ended 31 March 2017.

Key features

-- Cash balances have been maintained

-- On-going overhead control, whilst maintaining core competencies resulted in a reduced loss before tax

-- Reduced revenues reflect the difficult conditions experienced in the industry

Financial metrics for Years ended 31 March 2017 v 31 March 2016

* Revenue $4.8m v $6.3m

* Adjusted EBITDA $(0.5)m v $(0.6)m

* Loss before tax $1.1m v $4.7m

* Adjusted loss per share: 1.7 cents v 3.6 cents

* Loss per share: 2.0 cents v 8.0 cents

* Cash balance $15.3m v $15.1m

Outlook

-- Increasing drilling activity in North America is restoring customer confidence, however, capital expenditure remains constrained.

-- Investment in technology & business development will continue to enhance the Group's product range.

-- Management to maintain focus on cash and overhead control.

Martin Perry, CEO of Enteq Upstream plc, commented: "Enteq has maintained a sustainable business through difficult market conditions. Core competencies remain, technical differentiation is being improved and market share maintained. The business is secure and ready to respond to growth opportunities around the world and in North America when market conditions allow."

Prospects

World oil prices have recently been under-pinned by Russian / Middle Eastern volume agreements which should result in more favorable market conditions for oil and gas companies and their service providers. In North America, through a combination of stable oil prices and increased efficiencies, the shale drillers are maintaining activities which will drive the need for further equipment in due course. Enteq continues to enhance its technology and make gains in establishing new international customers. Tight cost management has led to a strong cash position that give Enteq a platform from which to develop in a potentially recovering market.

[1gw] 13/6/2017 16:00

Tumbleweed blowing through the NTQ trading desks the day before results, so it doesn't look like anything has leaked.

While we already know the cash balance at end-year from the 12th April rns, the rest of the balance sheet is unknown, and we know only that revenues and underlying EBITDA were expected to be in-line with the Board's expectations. So something to look forward to, besides the commentary on current trading and outlook given the continuing increase in the US rig count.

[1gw] 05/6/2017 14:33

Well it does sometimes feel that I'm helping to support the share price. But given the net tangible asset value and in particular the cash position, it feels to me like a relatively low risk (for a very low market cap oil services co!).

We shall see.

[1gw] 05/6/2017 11:32

And I presume that's my buy finally appearing in the trade listing - looking like a sell.

[1gw] 05/6/2017 10:27

Agree. I've bought some more.

[1gw] 02/6/2017 09:33

Ouch! Once again this share demonstrates that if thinly-traded stocks can move up quickly on (apparently) light volume they can also move down quickly on (apparently) light volume!

[1gw] 31/5/2017 14:01

The advertised spread has been reduced to 1p (25p-26p, down from 25p-28p). So perhaps they are looking for a bit of business now.

[1gw] 22/5/2017 10:30

It seems the MMs are hardly looking for business, with an advertised spread of 3p. Roll on 14th June.

[rivaldo] 17/5/2017 14:05

Not a bad move on £8k of buys today :o)) I assume not much stock around.

[petersinthemarket] 16/5/2017 20:20

Only roughly on bottom trend. No panic. It will rise again. pete

[1gw] 16/5/2017 19:27

And from the two 1m trades just reported from 12th, looks like Hargreave Hale paid 25p.

[1gw] 16/5/2017 15:20

150k shares gone through this afternoon at 25p as well. Surprised that hasn't moved the price up.

[rivaldo] 16/5/2017 12:11

RNS - Hargreave Hale have bought another 1m shares and now own over 10% of NTQ, or 6.35m shares:



Quite a vote of confidence.

[petersinthemarket] 08/5/2017 09:27

Does that look like a head and shoulders?

[1gw] 03/5/2017 16:04

Managed to get a quote and deal price today, so that's me in for some more.

[zog] 02/5/2017 21:11

Interesting announcement made late afternoon today: a technology development grant from the UK Government's innovation agency. Not a huge sum of money, but a timely acknowledgement of Enteq's expertise in drilling technology, and potentially useful collaborations with Imperial College London and with the Chinese institue of Petroleum.
hxxp://www.enteq.com/enteq-partnership-ic