Welcome to our dedicated page for Enerflex Ltd. news (Ticker: EFXT), a resource for investors and traders seeking the latest updates and insights on Enerflex Ltd. stock.
Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) is a global leader in the design, engineering, manufacturing, and aftermarket support of equipment and systems for natural gas processing and transportation. With a dedicated focus on gas compression, Enerflex offers a diverse range of applications from low-horsepower solutions to high-horsepower, centralized field compression systems. The company's operations are segmented into three main regions: North America, Latin America, and the Eastern Hemisphere, each offering Engineered Systems, After-market Service, and Energy Infrastructure products.
Enerflex's North America segment generates the majority of the company's revenue, underscoring its significant market presence in that region. Among its recent achievements, Enerflex has demonstrated robust financial performance, showcasing positive movements in working capital and a strategic focus on managing global operations efficiently. The company's financial health is reflected in its ability to handle significant cash collections and manage inventory effectively.
Enerflex is also a forward-thinking company, actively participating in the engineering, procurement, and construction (EPC) projects that drive the energy industry forward. This includes turnkey facilities that move natural gas from the wellhead to the pipeline, ensuring efficient and reliable energy transportation.
In recent developments, Enerflex announced the resignation of its Senior Vice President and Chief Financial Officer, Rodney D. Gray, and has initiated a search for a new CFO. This transition marks a new chapter for the company as it continues to strengthen its leadership team. Additionally, the company recently held its Annual Meeting of Shareholders, where all 10 nominee directors were elected, reflecting strong shareholder support and confidence in Enerflex's strategic direction.
For more details and the latest updates, investors and media can contact:
Marc Rossiter, President and CEO, via email at MRossiter@enerflex.com
Jeff Fetterly, VP, Corporate Development and Investor Relations, via email at JFetterly@enerflex.com
Enerflex (TSX: EFX) (NYSE: EFXT) has provided an update on its modularized cryogenic natural gas processing facility project in Kurdistan (EH Cryo project). Following a drone attack near the project site on April 26, 2024, Enerflex suspended activities and demobilized personnel. Despite collaborative efforts with the customer, Enerflex received notice of the customer's intent to terminate the contract effective September 8, 2024. Enerflex views this as a wrongful attempt to circumvent its contractual rights and plans to dispute the termination.
As of June 30, 2024, the project was approximately 85% complete, with a net unbilled revenue asset of $160 million. The project represented about 6% of the Company's Engineered Systems backlog. Enerflex has provided a $31 million Letter of Credit in support of its obligations under the contract.
Enerflex reported strong Q2/24 financial results with a record adjusted EBITDA of $122 million, up from $107 million in Q2/23 and $69 million in Q1/24. Revenue increased to $614 million, driven by higher Engineered Systems (ES) and After-market Services (AMS) revenue.
Gross margin improved to $173 million or 28% of revenue. ES bookings reached $331 million, maintaining a backlog of $1.3 billion, while EI backlog stood at $1.6 billion. The company's net debt-to-EBITDA ratio was 2.2x, aiming for a target of 1.5x-2.0x.
Full-year 2024 capital spending is expected at the low end of $90-$110 million guidance. Cash provided by operating activities improved to $12 million. The company suspended a project in Kurdistan due to Force Majeure.
Enerflex extended its revolving credit facility to $800 million and repaid $120 million of higher-cost debt. Liquidity remains strong with $512 million available. The company declared a CAD$0.025 per share dividend.
Enerflex announced its decision to extend its revolving credit facility to October 2026, increasing its availability to $800 million. The company will repay its existing $120 million term loan using cash and the expanded credit facility.
Enerflex also introduced a new leverage framework targeting a net debt-to-EBITDA ratio of 1.5x to 2.0x. The company anticipates generating around $1.6 billion in revenue through its customer contracts. The new framework aims to support global business operations and enhance shareholder returns through potential dividends, share repurchases, and debt repayments.
Second-quarter financial results will be released on August 7, 2024, followed by a conference call the next day. Registration details for the call are available on Enerflex's website.
Enerflex (EFXT) announced the voting results of its Annual Meeting of Shareholders, with the approval of all nominee directors. The shareholders also re-appointed Ernst & Young LLP as the auditor but defeated the non-binding advisory vote on executive compensation.
Enerflex reported revenue of $638 million in Q1 2024, with strong performance in the Energy Infrastructure product line. The company faced challenges with delays and increased costs in the EH Cryo Project, impacting gross margin and adjusted EBITDA. Cash provided by operating activities improved significantly to $101 million, with a net debt balance of $743 million. Enerflex maintains a strong liquidity position and focus on debt reduction to enhance shareholder returns.
Enerflex (EFXT) successfully appealed a Mexican labor board decision that ordered the company to pay a former employee $125 million, ruling in favor of the company's arguments. Enerflex plans to release its first-quarter financial results on May 7, 2024, and will hold a conference call on May 8, 2024, to discuss the results.
Effective January 1, 2024, the company changed its presentation currency from Canadian dollars to United States dollars for more relevant financial reporting.
FAQ
What is the current stock price of Enerflex Ltd. (EFXT)?
What is the market cap of Enerflex Ltd. (EFXT)?
What does Enerflex Ltd. specialize in?
Which regions does Enerflex operate in?
What recent leadership changes have occurred at Enerflex?
How does Enerflex generate the majority of its revenue?
What are Enerflex's core business segments?
What recent achievements has Enerflex made?
How can investors get in touch with Enerflex?
What is Enerflex’s approach to financial management?
What type of projects does Enerflex participate in?
Who were elected as directors at the latest Annual Meeting of Shareholders?
