Enteq Upstream: Big opportunities, low valuation
Enteq Upstream PLC (LON:NTQ) recently released interim results for the period ended 30 September. These are in line with the AGM statement which the company released in September. 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.
In terms of specific revenue drivers, these were also in line with previous statements from the company. North American revenue has been impacted sharply by the industry slowdown and depressed rigs counts and was down by some 80% for the period. Overseas (meaning non-American) revenues showed greater stability, supported by new customers in China. The company also reports continued progress with its new strategic partner in Saudi Arabia and expects to complete its accreditation process before the financial year-end (Mar 2021), which would lead to additional revenue booking assuming a successful outcome to the process.
Quick facts: Enteq Upstream PLC
Price: 16.5 GBX
Market Cap: £11.19 m
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