Year-end update and proposed Board changes

RNS Number : 7015V

Enteq Upstream PLC

20 April 2016

 

Enteq Upstream plc

("Enteq" or the "Company")

Year-end update and proposed Board changes

Enteq, the oilfield services technology and equipment supplier, is pleased to provide an update for the year ended 31 March 2016 and announce a restructuring of the Board to be effected following the Group's AGM in September.

In the period to 31 March 2016 there has been further dramatic reductions in both oil prices and rig activity in North America, down approximately 60% from that of a year ago. Enteq, in common with most businesses in the oil & gas sector, and in particular in drilling related products and services, has accordingly faced a challenging year.

The Board expects to report both full year revenues and underlying EBITDA in-line with its expectations. The cash balance as at 31st March 2016 was $15.1m, up both on the $14.1m reported as at March 31st 2015 and $14.6m reported as at September 30th 2015.

Enteq has continued to reduce costs across the company to protect profitability and cash reserves whilst maintaining core capabilities.  In order to re-align the business with the current trading conditions the Board expects to provide for an exceptional, non-cash, slow moving inventory provision of $2.7m in the year end results. 

The Board has additionally decided that it is appropriate to match its own structure with current activities and further reduce its own costs. Accordingly, following the AGM in September 2016, Neil Warner will stand down as Chairman and leave the Company and Raymond Garcia will step down from the Board (but remain as Chief Operating Officer, based in Texas, USA).

Following these changes which will become effective following the AGM in September, the Board will comprise: Iain Paterson (Chairman), Robin Pinchbeck (Non-Executive Director), Martin Perry (CEO) and David Steel (Finance Director).

The company anticipates reporting its full year results for the year ended 31 March 2016 on 15 June 2016.

For further information, please contact:

Enteq Upstream plc	[phone]
Martin Perry, Chief Executive Officer
David Steel, Finance Director
Investec Bank plc (NOMAD and Broker)	[phone]
Chris Treneman, Patrick Robb, David Anderson

 

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