Enteq Sees 2022 Profit From Division Missing Views; Shares fall

By Joe Hoppe

Enteq Technologies PLC shares fell Wednesday after it said it expects full-year revenue and profit generation from its measurement-while-drilling unit to miss previous expectations, and it was considering sources of funding.

Shares at 0719 GMT were down 3.75 pence, or 25% at 11.0 pence.

The energy services technology supplier said demand for its MWD products have remained constrained with continued margin erosion, as a number of new competitors have emerged in the market space and international demand remains muted compared to prepandemic levels. The company said Chinese activity levels in particular remain low with no signs of increases in the near-term.

The company said its current evaluation of MWD full-year revenue and profit generation is below previous expectations, although it did not provide any figures, and said it continues to evaluate changing business models to maximize cash generation.

Enteq said its rotary steerable drilling product SABER has passed all passive testing stages, and field trial systems are in manufacture–although delayed due to supply-chain issues. As such, SABER revenue will be delayed from previous expectations.

To ensure funding for working capital for additional growth as Enteq invests in building the first operational SABER equipment, a number of sources are being considered from existing assets.

Write to Joe Hoppe at [email protected]

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