Enerflex Ltd

EFX

Equity

ISIN CA29269R1055 / Valor 13055730

Toronto Stock Exchange (2024-12-23)

CAD 13.89+3.19%

Enerflex Ltd
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About company

Enerflex Ltd., headquartered in Calgary, Alberta, is a global provider of energy infrastructure-related products and services primarily focused on the oil and gas industry. The company specializes in the design, manufacture, and service of systems that enhance the production, processing, and transportation of natural gas along with other hydrocarbons and byproducts. Enerflex's offerings include natural gas compression, processing, and electric power equipment, as well as related engineering and mechanical service solutions, catering to clients worldwide. With operations spanning across key energy-producing regions, Enerflex aims to support the energy sector's efficiency and sustainability by delivering innovative and reliable solutions. The company's commitment to its stakeholders was underscored during its Annual Meeting of Shareholders in 2024, where all 10 nominee directors were approved, indicating strong governance and strategic direction at its core.

Summarized from source with an LLMView SourceSector: Energy

Revenue Overview

In the first quarter of 2024, Enerflex Ltd reported a revenue of $638 million, an increase from $610 million in the same quarter of the previous year. This growth was primarily driven by significant contributions from the Energy Infrastructure (EI) product line, particularly due to the accounting changes in a major Build-Own-Operate-Maintain (BOOM) contract in the Eastern Hemisphere, alongside increased After-market Service (AMS) revenue from heightened parts sales and maintenance activities.

Gross Margin Analysis

For the quarter ending March 31, 2024, Enerflex Ltd recorded a gross margin of $87 million, which represents 13.6% of the revenue, a decrease from 19.5% in the first quarter of 2023. This reduction in gross margin percentage is largely attributed to project delays and escalated costs associated with a modularized cryogenic natural gas processing facility project in Kurdistan, alongside the impact of a larger upfront gain on a finance lease project recognized in the previous year.

SG&A and Foreign Exchange Impact

Enerflex Ltd maintained its Selling, General and Administrative expenses (SG&A) at $78 million during the first quarter of 2024, consistent with the previous year's figures. However, the company experienced a reduction in foreign exchange losses, reporting $1 million in losses compared to $8 million in the first quarter of 2023, primarily due to more favorable currency conditions in Argentina.

Operating Income and Capital Expenditures

The operating income for Enerflex Ltd in the first quarter of 2024 was $8 million, a decrease from $33 million reported in the same period in 2023. This decline was mainly due to the lower gross margin percentage caused by the aforementioned project delays and increased costs. Additionally, the company invested $17 million in capital expenditures, focusing on both maintenance and expansion projects across its global Energy Infrastructure assets.

Dividend Declaration

Subsequent to the end of the first quarter of 2024, Enerflex Ltd announced a quarterly dividend of C$0.025 per share, payable on July 11, 2024, to shareholders of record as of May 23, 2024. This declaration reflects the company's ongoing commitment to returning value to its shareholders while carefully managing its financial resources amid varying market conditions.

Summarized from source with an LLMView Source

Key figures

124%1Y

84.2%3Y

12.5%5Y

Performance

43.0%1Y

48.3%3Y

53.8%5Y

Volatility