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We feel now is a pretty good time to analyse Enteq Technologies Plc's (LON:NTQ) business as it appears the company may be on the cusp of a considerable accomplishment. Enteq Technologies Plc, together with its subsidiaries, provides reach and recovery products and technologies to the technologies oil and gas services market in the United States, China, Europe, Central Asia, Australasia, and internationally. On 31 March 2024, the UK£3.6m market-cap company posted a loss of US$3.1m for its most recent financial year. As path to profitability is the topic on Enteq Technologies' investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
See our latest analysis for Enteq Technologies
According to some industry analysts covering Enteq Technologies, breakeven is near. They expect the company to post a final loss in 2026, before turning a profit of US$1.2m in 2027. Therefore, the company is expected to breakeven roughly 3 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 54% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
We're not going to go through company-specific developments for Enteq Technologies given that this is a high-level summary, however, keep in mind that typically an energy business has lumpy cash flows which are contingent on the natural resource and stage at which the company is operating. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Before we wrap up, there’s one aspect worth mentioning. Enteq Technologies currently has no debt on its balance sheet, which is quite unusual for a cash-burning oil and gas company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
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There are too many aspects of Enteq Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Enteq Technologies' company page on Simply Wall St. We've also compiled a list of relevant factors you should look at: