Enteq Technologies plc (LON:NTQ) the specialist energy services engineering and technology company, has provided a trading update for the financial year ended 31 March 2024 and an update on the progress of the SABER Tool (Steer-At-Bit Enteq Rotary) technology.
Trading update:
Trading reflects the Company’s strategy to focus on SABER development and commercialisation, whilst maintaining a lean overhead base.
The cash balance as at 31 March 2024 was $3.0m ($5.3m at 31 March 2023, and $5.1m at 30 September 2023). The movement in cash during the financial year reflects continuing investment in SABER, and the steps taken towards full commercialisation of the tool.
Revenue for the full year ended 31 March 2024 will be in the region of $0.9m representing the final revenue following the sale of the XXT business. The adjusted EBITDA1 loss for the year is expected to be approximately $2.9m compared to the equivalent loss of $1.6m in the first half of the year. The EBITDA result reflects the discipline on lean overhead management while maximising liquidity for the SABER commercialisation.
SABER update:
The SABER Tool and personnel are currently on-location in a live drilling environment with the customer in Australia as part of a structured customer test programme, expected to then progress to active commercial operations.
The downhole active drilling programme, performed at the Catoosa, USA test site in February 2024, has again successfully proved the steering ability of the SABER Tool, with this phase of testing proving additional technical capabilities of the tool. Potential customers and strategic partners have reviewed the results of the testing from Catoosa, which has led to ongoing commercial discussions with these selected industry parties.
The build-programme for the further fleet of equipment is progressing as planned, with the major items now in stock at the Houston facility. Additional incremental performance and production improvements have been implemented and tested.
Andrew Law, CEO of Enteq Technologies plc, commented:
“We are pleased with the technical and commercial progress that has been made. Following the recent Catoosa testing, it has been encouraging to see good levels of engagement with potential strategic partners and customers in the industry.”
The financial information for FY24 included in this announcement is unaudited.
1Adjusted EBITDA is reported loss before tax adjusted for interest, depreciation, amortisation, foreign exchange movements, performance share plan charges and exceptional items.
