2baef18b-491a-4cd5-8dca-e9665a3274ae.pdf Enteq Upstream plc


Interim results for the six months ended 30 September 2015


AIM traded Enteq Upstream plc ('Enteq', the 'Company' or the 'Group'), the oil & gas drilling technology company, today releases its interim results for the six months ended 30 September 2015.


Operational Highlights

  • Oil price and North American rig count reduced by over 50% since September 2014

  • Overhead run-rate reduced by approximately 50% in same time period

  • Half-on-half revenues continued to decline reflecting rig count reduction

  • Cash balance, at 30 September 2015, increased to $14.5m


    Financial Metrics

    Six months to:

    30 Sept 2015 US$m

    30 Sept 2014 US$m

    3.0

    13.6

    0.4 loss

    1.0

    1.3

    2.2

    2.5 loss

    1.3

    14.5

    13.8

    • Revenue

    • Consolidated adjusted EBITDA1

    • Loss before tax

    • Adjusted earnings per share (cents)2

    • Cash



    Outlook

  • Oil price and North American rig count expected to remain depressed until at least 2017


  • Spare equipment capacity in market continues to depress demand for Enteq products

Neil Warner, Chairman of Enteq Upstream plc, commented:

'Enteq's reported results mirror recent announcements from other major oil-field service companies. As expected, Enteq's revenues and profits have suffered due to the scale of the industry down-turn. In addition to the decisive internal cost reduction programme reported in our March 2015 full year results, further reductions have been made during H1 2015/16. As a result, we have improved our cash balance since March 2015 and now operate at close to a break-even adjusted EBITDA level. The Group continues to explore opportunities to expand market share outside North America and to maintain a strong technology offering.'


1 Adjusted EBITDA is reported profit before tax adjusted for interest, depreciation, amortisation, foreign exchange movements, performance share plan charges and exceptional items.

2 Adjusted earnings per share is reported profit per share adjusted for foreign exchange movements, amortisation, performance share plan charges and exceptional items.


For further information, please contact: Enteq Upstream plc +44 (0) 1494 618741 Martin Perry, Chief Executive Officer

David Steel, Finance Director


Investec Bank plc (Nomad and Broker) +44 (0) 20 7597 4000 Chris Treneman, Patrick Robb, David Anderson
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