CALGARY - Canada's leader in natural gas compression and
power generation equipment and services is reporting significantly higher
earnings for the first half of 2001.
Calgary-based Enerflex Systems Ltd. today announced that net income for
the year's first two quarters was $10.3 million ($0.69 per share), an increase
of 70% compared to $6.1 million ($0.41 per share) in the first half of 2000.
In the quarter ended June 30, 2001, Enerflex's net income of $5.4 million
($0.36 per share), was more than double the net income of $2.3 million
($0.16 per share) in the second quarter of 2000. These second-quarter results
are particularly significant given that spring break-up normally leads to
slower sales in the Compression and Power business unit. Revenue in the second
quarter of 2001 was $85.2 million, 31% higher than the same period of 2000.
These financial results illustrate the impact of stronger natural gas
supply on the Company's business. Enerflex's strategy of delivering
high-quality products and services at competitive prices is reinforcing its
dominant position in Canada and showing progress in international markets.
According to President and Chief Executive Officer Malcolm Cox, Enerflex
is well positioned to benefit from worldwide growth in natural gas markets.
"Market demand for new compression equipment began to improve in the
fourth quarter of 2000, and is now being reflected in revenues," said Cox.
"Enerflex's order backlog will continue to support strong revenue growth,
particularly in our compression packaging business, for the rest of 2001."
While natural gas prices have retreated since the winter, prices are
still high by historical standards. Incremental power generation in North
America is being fueled by gas and increased gas demand drives our business.
Upstream capital spending will continue to be directed towards developing
supply for this growing market.
The Board of Directors has declared a quarterly dividend of $0.10 per
common share payable on October 5, 2001 to shareholders of record on
September 27, 2001. In the second quarter, Enerflex repurchased for
cancellation 6,500 common shares at an average price of $27.85 per share
pursuant to a Normal Course Issuer Bid. The issuer bid was renewed on July 26,
2001 and expires July 25, 2002.
Enerflex Systems Ltd. is Canada's dominant gas compression and power
generation equipment and service provider, and a growing player in the global
market. The Company is headquartered in Calgary, has operations in Canada, the
United States, the United Kingdom, Indonesia and Australia and employs
approximately 1,000 people worldwide. The Company's shares trade on The
Toronto Stock Exchange under the symbol EFX. |
