When Will Enteq Technologies Plc (LON:NTQ) Become Profitable?

With the business potentially at an important milestone, we thought we'd take a closer look at Enteq Technologies Plc's (LON:NTQ) future prospects. 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. The UK£3.6m market-cap company announced a latest loss of US$3.1m on 31 March 2024 for its most recent financial year result. Many investors are wondering about the rate at which Enteq Technologies will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Enteq Technologies

Enteq Technologies is bordering on breakeven, according to some British Energy Services analysts. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$1.2m in 2027. Therefore, the company is expected to breakeven roughly 3 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 54%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Enteq Technologies' growth isn’t the focus of this broad overview, 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.

One thing we’d like to point out is that Enteq Technologies has no debt on its balance sheet, which is rare for a loss-making oil and gas company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

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 important aspects you should further examine:

1. Valuation: What is Enteq Technologies worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Enteq Technologies is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Enteq Technologies’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.