Enteq Technologies Share Discussion Threads

[eezymunny] 12/11/2020 09:42

As I said not long ago "tangible NAV has gone $m 32, 29, 24, 23, 22, 22 and now 17. No dividends paid. Retained earning a loss of $76m."

And now TNAV c. $15.2m and retained losses $77.7m

The very long term dreadful performance continues. Better times may lay ahead of course but really, are they big enough to compete with the big boys. Time will tell...

[p1nkfish] 12/11/2020 09:36

1gw, the Perry role is very interesting.

He will not be exec Chair but look at his role!!!

His new role is necessary and will help diversify. Its precisely what he will be good at while the new CEO exploits and manages where they are now.

Perry isn't the type to be put aside or pushed out. There is logic to this change and good for the future business.

[dolittle1] 12/11/2020 09:12

Market will not like acquisitions. Will see the cash safety net being taken away. Droo below 10p imminent with nothing positive to look forward to.

[1gw] 12/11/2020 09:00

Fairly sobering reading, and maybe MP has been made to walk the plank as a consequence. I am sorry to see him have to step back. He is staying on as chairman, but in a non-executive capacity.

On the other hand, despite the dramatic fall in 1H revenue, they are very good at managing the business to mitigate these downturns, as is evidenced by the adjusted EBITDA breakeven and them still having 10p/share or so of cash (by my calcs) on the balance sheet. I still regard Enteq as having good option value at this shareprice, given the cash balance. I notice the comment in the release about "settling fees associated with potential acquisitions" which suggests they have been actively looking to deploy some of this cash which may then change the risk balance.

They have done well (or perhaps been lucky) in that most of the rental kit seems to have got to the end of its contractual term, with just $0.9m coming back into inventory. The fact that they are putting it into inventory rather than writing it off suggests there is some hope (balance of probability?) that they will be able to get some value from it, or perhaps they're waiting until the end of the year to take that decision. We know the US rig count has been moving in the right direction recently, but there's a long way still to go to get back to where it was at the beginning of the year.

So all eyes on international now, to see if it can continue to grow to be a meaningful business. If they can get China and Saudi established and then onto a reasonable and sustainable growth trajectory then the future may still be bright, especially if the Rotary Steerable System comes through. Given the importance of international, putting Andrew Law in charge has some logic.

[dolittle1] 12/11/2020 08:54

Wow, they just mentioned that they are struggling with new orders in US shale. Can see US revenue going to zero soon. Cash going down as well. Worrying times.

[p1nkfish] 12/11/2020 08:51

2 things.

1) he's not stepping down. This is important and VERY POSITIVE.

"in order to allow Martin Perry, the current CEO, to carry on playing an active role in the Company.  Martin will continue to support Andrew, whilst also reviewing strategic growth opportunities with further support from the considerable industry and financial experience of Neil Hartley.""

2) Biden will be in big trouble in his own backyard if they close down franking soon. It will be done over years.

[p1nkfish] 12/11/2020 08:32

The management changes are excellent.

They will exploit the current strategy whilst seriously looking ahead.

CEO role going to the right person and current CEO moving to steer into new markets.

Its well thought out and looking forward.

[likitorma] 12/11/2020 08:22

For me, it is more concerning to see the CEO step down. He came with a reputation and was the one holding the company together.

[dolittle1] 12/11/2020 08:17

No sell quotes available at 12p.about to crash.

[dolittle1] 12/11/2020 07:23

They are desperately trying to ramp the share price. They are keen to point out that international sales are up 75% but forget to mention that overall sales are down a whopping 60%.yes, you read it right 60% drop in revenue. Cash reduced as well.

[brugen] 11/11/2020 22:00

1gw you should have reminded us earlier. Too late to get the party hats now!

[1gw] 11/11/2020 18:22

Well, excitement reaching fever pitch ahead of tomorrow's anticipated interims.

[p1nkfish] 30/9/2020 11:55

Not worried about holding here, just impatient. GLA.

[rivaldo] 30/9/2020 11:11

New research note out today from Proactive. They conclude:

"Valuation

The current market capitalisation of £9.05mln (US$11.6mln) compares with the current net cash position of US$8.8mln. This implies that the market is valuing the existing business and the opportunity set at US$2.8mln. We believe that based on current products plus the Rotary Steerable system, and with further expansion in overseas markets, the company could produce revenues in excess of US$20mln by 2024. We argue that the current share price does not reflect this."

Also worth noting:

"Given the comfortable balance sheet position, the company is maintaining its willingness to make focussed investments in new product development.The biggest project is the Rotary Steerable Drilling system that is under development. This project, together with other new product lines, will give Enteq an addressable market of US$2bn per year, compared with US$100mln for the current core technology offerings. The AGM statement indicates that a prototype deployment is scheduled for 2021, and we continue to expect that first revenues from this system will be realised during FY March 2022."

[p1nkfish] 29/9/2020 07:28

BoD for the head of International Sales too. Not unexpected type of results given the wtate of the O&G markets.

[1gw] 29/9/2020 07:09

Could have been worse.

"Satisfactory trading recovery" and 1H revenue & adj EBITDA in line with management expectations. Cash down to $8.8m (still about 10p/share by my calcs), with reference to investing in working capital which suggests business is growing again. Suggestion of potential follow-on orders in China.

I'll take that.

[rivaldo] 26/8/2020 08:41

Shell's deal with Egdon Resources yesterday "to appraise two licence areas in the southern North Sea just off the coast of Scarborough" could be interesting for NTQ:



- it's with Shell, with whom NTQ already have a promising relationship
- it's in the UK, so obviously NTQ have a geographic advantage
- most importantly given NTQ's expertise in horizontal drilling:

"The companies now believe that modern techniques using horizontal drilling mean that the fields can be developed, Mark Abbott, 59, Egdon’s chief executive, said."

[p1nkfish] 25/8/2020 23:24

Very interesting day of trading in NTQ.

Looks positive on buy vs sell vol, vol vs average, new adds looking for a profit on their buy price going forward etc.

Lovely.

[1gw] 24/8/2020 20:53

Welcome aboard!

[oliversydney] 24/8/2020 09:56

Just seen the presentation and impressed so bought some at just over .14 which looks attractive entry price and also encouraged when directors but stock

[p1nkfish] 22/8/2020 23:36

Always worth a quick look for the latest.

[p1nkfish] 22/8/2020 20:04

Baker H recent report - there was massive rig reduction over past year we all know about but recent uptick in count in US and Canada. May have bottomed.