LONDON (ShareCast) - Oil and gas drilling technology company Enteq Upstream widened its annual losses on the back of the acquisition of KMS.

The group reported a loss before tax of $11.5m for the year to end of March 2014, up from a loss of $0.6m a year earlier, reflecting a $9.8m impairment charge of goodwill and intangible assets related to the acquisition of oil technology firm KMS.

Nevertheless, the firm delivered a like-for-like increase in revenues of 24% to $24.6m during the year, resulting in an adjusted earnings per share of $0.22, compared to the prior year’s loss of $0.8.

The total revenue for the year was predominantly sensor, electronic and mechanical component sales, however, 17% of revenue related to sales of complete systems.

"Our results for the financial year ended March 2014 show pleasing like-for-like annual growth from a stabilised North American drilling market which is believed to have good prospects in 2014," said Chief Executive Martin Perry.

"Through investment in technology, product line extension and geographic diversification, Enteq continues to expand its customer offering and addressable market. We have been successful with early expansion of the business beyond North America, and the new agreement in China represents a significant opportunity.

"With the security of a strong balance sheet we continue to focus on growing the drilling technology business organically and through the addition of complementary product lines."

RD

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