Enteq Upstream dips despite 143% earnings hike

Oil and gas producer Enteq Upstream plc (LON: NTQ) saw its shares dip despite posting progress in its half-year financials.

The Company saw its revenues jump 58% year-on-year to $6.5 million for the half year ended 30 September 2019, which led a 143% surge in its EBITDA, up to $1.5 million.

However, Enteq also noted that losses per share remained flat at 0.4 cents, while post tax losses widened by $100,000 to $400,000, while its cash balance dropped by more than a million dollars to $10.7 million.

Operationally, the company added that its technology partnerships were ‘creating pull through’ for Enteq Upstream sales, and that during the period they secured an exclusive agreement with Shell for innovative Directional Drilling technology.

Elsewhere in oil, Premier Oil PLC (LON: PMO) offered a positive forecast, while Tullow Oil plc (LON: TLW) issued a less promising outlook. Royal Dutch Shell plc (NYSE: RDS.A) and Nostrum Oil and Gas PLC (LON: NOG) both posted disappointing financial results.

Enteq Upstream comments

Martin Perry, CEO, responded to the update,

“Enteq has delivered progressive growth, both in revenue and adjusted EBITDA, for the third successive first half reporting period, with a particularly strong performance from international sales. Investment continues to be made into both new technology and strategic opportunities with the recent exclusive technology agreement with Shell significantly broadening the potential for Enteq.”

“Despite a recent drop in the number of active rigs drilling in North America, Enteq is optimistic for growth as new technology and markets are introduced. The board is confident in meeting its full year expectations.”

Investor notes

Following the update, the Company’s shares dipped 7.89% or 2.40p to 28.00p per share 14/11/19 13:01 GMT. Neither a dividend yield nor a p/e ratio are available, their market cap is £19.32 million.

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.