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Enerflex is an ethical and safety-oriented company guided by commitments to provide value to customers and shareholders, a safe and interesting work environment for its employees, and a positive impact on the communities in which it operates.
It has been well over three decades since our beginnings as a small shop supplying compression equipment in western Canada. But our customer focus and commitment to innovation, quality and safety has not changed.
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Enerflex’s people and projects are at work around the world, 24/7.
Extensive reciprocating and rotary screw experience. Wide horsepower range, with gas-fuelled and electric drives.
Thoroughly designed, well-built and efficiently delivered modules from our state-of-the-art facilities in Calgary, Alberta and Houston, Texas.
Enerflex offers complete global customer service. 24/7. Year-round.
Electric-drive generators up to 50 Mw, for independent and alternative power producers and anywhere stand-alone generation is needed.
Focus your capital outlays on drilling and completing wells by choosing from our broad lineup of rental packages.
We will help extend your equipment’s service life, upgrade system capacities or optimize the load on your compression horsepower.
We have the big-picture vision, talented people and industry-leading capabilities to fulfil requirements from design through long-term maintenance.
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Our extensive capabilities have been assembled and are being continually fine-tuned and strengthened specifically to meet our customer promise: being your single source supplier of innovative solutions.
Ongoing innovations serving the industry's focus on liquids extraction and LNG exports.
Enerflex's Houston manufacturing facility feeds global and domestic markets, with large-scale assembly capacity and comprehensive capabilities including high-capacity refrigeration, liquids fractionation and deep-cut processing.
Compression and processing rental equipment, after-market services, electric power opportunities and new equipment offerings serve a wide customer base.
Serving an array of customer requirements, from coal seam gas to LNG and high-pressure storage compression.
Our locally based design and engineering team serves this large region with specialized offshore and onshore compression, processing, refrigeration, rental equipment and FPSO topsides.
Integrated delivery of large turnkey facilities, including the 90 MMSCF per day processing facility with 6,000 barrels per day of condensate extraction for Oman Oil Company Exploration and Production.
Industry-leading capability and experience serving specialized needs across a culturally diverse and geographically broad region.
When you join Enerflex, you're on a team of exceptional people and you're in a place of opportunity to do exceptional things.
Enerflex people are problem-solvers, risk-takers and team players, passionate about translating skills into solutions that meet or exceed the needs and expectations of our customers.
Virtually everything we do involves collaboration. That is a key feature of our culture, and it strengthens the Company.
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February 28, 2013 05:27:52 pm
Enerflex Reports Stronger Fourth Quarter and Year End 2012 Financial Results and Announces Quarterly Dividend
CALGARY, ALBERTA--(Marketwire - Feb. 28, 2013) - Enerflex Ltd. (TSX:EFX) ("Enerflex" or "the Company"), a leading supplier of products and services to the global energy industry, today reported its financial and operating results for the three and twelve months ended December 31, 2012.
Enerflex reported improved results for the fourth quarter and year-ended December 31, 2012, compared to the same periods in the prior year. The increases in revenue of $37.8 million, and $274.6 million, respectively, were due to higher revenue in the Southern U.S. and South America, and International segments, partially offset by lower revenue in Canada and the Northern U.S. The corresponding increase in gross margin performance, partially offset by higher selling and administrative expenses, resulted in net earnings from continuing operations for the fourth quarter that were higher by $9.3 million (52.5%), and $25.6 million (45.1%) for the 2012 year.
Enerflex exited 2012 with a backlog of $683.2 million, compared to $986.1 million at the end of 2011, a decrease of $302.9 million (30.7%). The decrease was attributable to lower bookings in all segments. Sequentially, backlog decreased by $92.2 million from September 30, 2012. The Company recorded bookings for Engineered Systems of $242.6 million during the fourth quarter, which was $210.7 million lower than the comparable period last year on decreased activity levels in the Canada and Northern U.S. and the International segments. Bookings in the International segment for the fourth quarter of 2011 benefited from a $228.0 million USD contract award for a gas processing plant in the Sultanate of Oman. In the Southern U.S. and South America segment, increased activity in liquids rich resource basins resulted in an increase in bookings during the fourth quarter of 2012 when compared to 2011. The decline in full year bookings was attributable to softness in the Canada and Northern U.S., and Southern U.S. and South America segments due to continuing weak natural gas prices and lower natural gas liquids ("NGL") prices, which produced a corresponding reduction in activity levels by natural gas producers. In comparison to 2011, bookings in the International segment were lower in 2012, particularly in the Middle East and North Africa region, which included the large contract in Oman, received during the fourth quarter of 2011.
"The Enerflex management team is very pleased with our strong fourth quarter and year-end financial results," said J. Blair Goertzen, Enerflex's President and Chief Executive Officer. "Through improved project execution and higher activity levels, we have successfully delivered strong gross margin performance. The Canada and Northern U.S. market continues to struggle with weak natural gas prices and this trend is expected to continue during the first half of 2013. The Southern U.S. and South America region has experienced a recovery in bookings of late, and we remain cautiously optimistic for 2013 in this region. Finally, there is no shortage of opportunities in our International segment, however we expect that these potential project awards will have long lead times which is consistent with project awards in this segment. With a strong balance sheet, a continuing focus on expanding our capabilities and a focus on controlling our costs, we are right-sized for the challenges of 2013, and well positioned to capitalize on the opportunities that will arise."
Fourth Quarter and Twelve Months Highlights
In the three and twelve months ended December 31, 2012, Enerflex:
Subsequent to the end of the fourth quarter of 2012:
Enerflex's $37.8 million period-over-period increase in revenue to $421.6 million in the fourth quarter of 2012 was a result of increased revenue in the Southern U.S. and South America and International segments, partially offset by decreased revenues in the Canada and Northern U.S. segment. The increase was due to higher Engineered Systems revenue and stronger Service revenues in all operating segments. Revenue from the Southern U.S. and South America, and International segments increased by $44.8 million and $27.4 million, respectively, compared to the same quarter of last year, while Canada and Northern U.S. revenue decreased by $34.4 million as a result of lower Engineered Systems and Rental revenues.
During the year ended December 31, 2012, the Company generated $1,501.7 million in revenue as compared to $1,227.1 million in 2011. The increase was a result of higher opening backlog for the Engineered Systems product line and stronger Service revenue, partially offset by a reduction in Rental revenue. Canada and Northern U.S. revenues decreased by $14.9 million, International revenue increased by $119.6 million, and Southern U.S. and South America revenue increased by $169.8 million in the year ended December 31, 2012, compared to 2011.
Gross margin for the quarter ended December 31, 2012 was $77.6 million or 18.4% of revenue as compared to $68.6 million or 17.9% of revenue for the same period of 2011. The increase in gross margin of $8.9 million (13.1%) was primarily due to strong gross margin performance in the Southern U.S. and South America, and International segments, partially offset by lower gross margin in the Canada and Northern U.S. segment as a result of the decrease in Engineered Systems and Rental revenues. Gross margin for the year ended December 31, 2012 was $273.2 million or 18.2% of revenue as compared to $225.9 million or 18.4% of revenue for 2011. The increase in gross margin of $47.3 million (20.9%) during 2012 was a result of strong gross margin performance in the Southern U.S. and South America, and International segments, partially offset by lower gross margin in the Canada and Northern U.S. segment compared to 2011. In addition, during 2011, gross margin included $16.5 million with respect to approved variation claims and the completion of a project on more favourable terms than originally anticipated in the MENA region.
The stronger gross margin in 2012 in the Southern U.S. and South America segment was attributable to higher revenues and excellent project execution. In the International segment, stronger plant utilization and project execution in 2012, coupled with increased revenues, drove an increase in gross margin. In Canada and the Northern U.S., gross margin was lower in 2012 due to lower revenues, lower plant utilization and project execution challenges in Casper, Wyoming in the first half of 2012.
Backlog at December 31, 2012 was $683.2 million compared to $986.1 million at December 31, 2011, a 30.7% decrease over the comparable period. As compared to September 30, 2012, backlog at December 31, 2012 decreased by $92.2 million or 11.9%. In Canada and the Northern U.S., the decrease was a result of low natural gas prices and a corresponding drop in customer activity levels. In the Southern U.S. and South America, bookings relating to the liquids-rich shale resources in the Eagle Ford, Marcellus, Permian, and Woodford resource basins temporarily slowed in the third quarter of 2012, before recovering in the fourth quarter of 2012. The decrease in International backlog was attributable to the Company's partial fulfillment of the equipment orders destined for Australia (project awarded in 2010) and the gas processing plant contract in the Sultanate of Oman (awarded in 2011).
Update on Discontinued Operations
As noted in previous public disclosures, Enerflex would consider a sale, partial sale, exit or combination thereof of the European Service and Combined Heat and Power ("CHP") business. Enerflex conducted a process to sell this business as a 'turn-key' operation to third parties. This process was unsuccessful as offers received were not considered fair and reasonable, resulting in the termination of the sale process. Enerflex is now pursuing alternatives involving a partial sale and wind up of the Service and CHP business. Enerflex recorded additional reorganization costs during the second quarter of 2012 totaling $5.9 million to reflect anticipated termination payments to employees, lessors and vendors under the applicable laws in the Netherlands, in the event that part of the operations are wound up. The partial sale and wind up process is ongoing and is subject to and shall be conducted in accordance with, Dutch information and consultation rules.
Quarterly Results Material
Enerflex's Consolidated Financial Statements as at and for the year ended December 31, 2012, and the accompanying Management's Discussion and Analysis, will be available on the Enerflex website at www.enerflex.com* under the Investors section or on SEDAR at www.sedar.com.
Conference Call and Webcast Details
Enerflex will host a conference call for analysts and investors on Friday, March 1, 2013 at 9:00 a.m. MST (11:00 a.m. EST) to discuss the Company's 2012 year-end results. The call will be hosted by Mr. J. Blair Goertzen, President and Chief Executive Officer and Mr. D. James Harbilas, Vice President and Chief Financial Officer of Enerflex Ltd.
If you wish to participate in this conference call, please call, 1.866.226.1792 or 1.416.340.2216. Please dial in 10 minutes prior to the start of the call. No passcode is required. The live audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com* under the Investors section on March 1, 2013 at 9:00 a.m. MST (11:00 a.m. EST). Approximately one hour after the call, a recording of the event will be available on the Company's website.
A replay of the teleconference will be available one hour after the conclusion of the call until midnight, March 8, 2013. Please call 1.800.408.3053 or 1.905.694.9451 and enter passcode 3903899.
Enerflex Ltd. is a single source supplier of products and services to the global oil and gas production industry. Enerflex provides natural gas compression and oil and gas processing equipment for sale or lease, refrigeration systems and power generation equipment, and a comprehensive package of field maintenance and contracting capabilities. Through the Company's ability to provide these products and services in an integrated manner, or as stand-alone offerings, Enerflex offers its customers a unique value proposition.
Headquartered in Calgary, Canada, Enerflex has approximately 3,300 employees worldwide. Enerflex, its subsidiaries, interests in affiliates and joint-ventures operate in Canada, the United States, Argentina, Colombia, Australia, the United Kingdom, Russia, the United Arab Emirates, Oman, Egypt, Bahrain, Indonesia and Singapore. Enerflex's shares trade on the Toronto Stock Exchange under the symbol "EFX". For more information about Enerflex, go to www.enerflex.com*.
Advisory Regarding Forward-Looking Statements
To provide Enerflex shareholders and potential investors with information regarding Enerflex, including management's assessment of future plans, Enerflex has included in this news release certain statements and information that are forward-looking statements or information within the meaning of applicable securities legislation, and which are collectively referred to in this advisory as "forward-looking statements." Information included in this news release that is not a statement of historical fact may be forward-looking information. When used in this document, words such as "plans", "expects", "will", "may" and similar expressions are intended to identify statements containing forward-looking information. In developing the forward-looking information in this news release, the Company has made certain assumptions with respect to general economic and industry growth rates, commodity prices, currency exchange and interest rates, competitive intensity and shareholder, regulatory and TSX approvals. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
Forward-looking information involves known and unknown risks and uncertainties and other factors, which may cause or contribute to Enerflex achieving actual results that are materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such risks and uncertainties include, among other things, the impact of general economic conditions; industry conditions, including the adoption of new environmental, taxation and other laws and regulations and changes in how they are interpreted and enforced; volatility of oil and gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations, including future dividends to shareholders of the Company; increased competition; the lack of availability of qualified personnel or management; labour unrest; political unrest; fluctuations in foreign exchange or interest rates; stock market volatility; opportunities available to or pursued by the Company; the reliability of Toromont's historical financial information as an indicator of Enerflex's historical or future results; potential tax liabilities if the requirements of the tax-deferred spinoff rules are not met; the effect of Enerflex's rights plan on any potential change of control transaction; obtaining financing; and other factors, many of which are beyond its control.
The foregoing list of factors and risks is not exhaustive. For an augmented discussion of the risk factors and uncertainties that affect or may affect Enerflex, the reader is directed to the section entitled "Risk Factors" in Enerflex's most recently filed Annual Information Form, as well as Enerflex's other publicly filed disclosure documents, available on www.sedar.com. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate at the time of preparation, may prove to be incorrect. Readers are cautioned that the actual results achieved will vary from the information provided in this press release and that such variation may be material. Consequently, Enerflex does not represent that actual results achieved will be the same in whole, or in part, as those set out in the forward-looking information.
Furthermore, the statements containing forward-looking information that are included in this news release are made as of the date of this news release, and Enerflex does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained in this news release is expressly qualified by this cautionary statement.
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