Enteq Upstream's interim revenues and earnings set to double

Oilfield services and equipment supplier Enteq Upstream said on Wednesday that both interim revenues and adjusted underlying earnings were likely to be ahead of management expectations.

Enteq has seen "progressive growth" year-to-date, with results for the six months ended 30 September set to show revenue growth of more than 50% and a doubling of adjusted earnings before interest, tax, depreciation and amortisation.

The AIM-listed group said it had continued to benefit from the ongoing success of its equipment rental programme in the USA, despite some reduction in rig count during recent months, and has made further gains in international markets, particularly in China, which is expected to account for around 30% of first-half revenues.

Enteq's recently-announced development project with Shell was said to further enhance its product range, leading to a "significantly increased market potential", while ongoing technology partnerships were now delivering commercial returns and contributing to sales opportunities.

Cash balances fell from $11.9m to $10.7m as Enteq made further investments in engineering projects and its rental equipment fleet.

Chief executive Martin Perry said: "Enteq has delivered sequential growth for each equivalent period over the last three years.

"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."

As of 1000 BST, Enteq shares had climbed 5.66% at 28p.