The investment in building partnerships, bringing engineering projects closer to market and developing a broader international customer base are beginning to show the anticipated returns

CEO Martin Perry

What the company does

Enteq Upstream PLC (LON:NTQ) is a provider to the global oil and gas directional drilling market. The company designs and produces high-end robust measurement while drilling (MWD) systems and associated components.

Its products are as follows:

  • Vibmon: This monitors downhole shock and vibration in real-time, enabling drillers to avoid costly downhole equipment failure.
  • Directional Interface Module: Handles the acquisition, formatting and telemetry of downhole data to the surface.
  • Directional Sensor Module: This unit incorporates accelerometers and magnetometers to provide temperature-corrected positional data.
  • Pulser Driver and DC Drive Pulser: In a typical MWD system, data is transmitted to the surface using mud-pulse telemetry, as a system which encodes downhole data in pressure pulses through the drilling fluid. The Pulser Driver drives this system

*It also has products that aid horizontal drilling and has developed new technologies such as PowerHop, At Bit and Rotary Steerable Technology.

How’s Enteq performing?

Enteq highlighted its stability with its interim results, thanks to its rapid response to the challenges in its markets amidst the pandemic and lower crude oil pricing.

The specialist oil and gas services firm noted that international diversity has increased, with non-US sources now accounting for some 74% of revenue versus 42% in the same period a year ago.

Specifically, it has seen growth in China and the Middle East.

Revenue for the six-month period amounted to US$2.6mln, down from US$6.5mln, while underlying earnings (adjusted EBITDA) remained positive at US$0.1mln, albeit down from US$1.5mln, while the loss after tax widened to US$0.7mln from US$0.5mln.

What the boss says: Martin Perry, chief executive

“The USA land shale drilling market has significantly reduced with on-going over capacity likely. Outside North America, despite the effects of oil price uncertainties and COVID-19, Enteq has succeeded in developing a strong customer base in China and the Middle East with good further opportunities.

“New technology will drive the efficiency of future drilling in all markets, and Enteq has some exciting product release plans which have the potential to change the scale of our business.”

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What the analyst says: Ed Stacey, Proactive Research

“H1 revenues were US$2.6mln and the period-end net cash position was US$8.8mln.

“We believe that this cash position is sufficient for the company to trade through the current oil and gas industry slowdown and to continue financing new product developments.”

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