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• Content META

  Title	Enerflex Ltd. Reports Third Quarter 2024 Financial and Operational Results and a 50% Dividend Increase
  ID	4135202
  External ID	7301271271
  Author	Unknown
  Published Date	Nov. 14, 2024, 5:45 a.m.
  Summary	ADJUSTED EBITDA OF $120 MILLION AND FREE CASH FLOW OF $78 MILLION ES AND EI BACKLOG STABLE AT $1.3 BILLION AND $1.6 BILLION, RESPECTIVELY, PROVIDING STRONG OPERATIONAL VISIBILITY BANK-ADJUSTED NET D
  Tags	press-release
  URL	https://www.manilatimes.net/2024/11/14/tmt-newswire/globenewswire/enerflex-ltd-reports-third-quarter-2024-financial-and-operational-results-and-a-50-dividend-increase/2004384
  Sentiment	Negative: 0.01881    Neutral: 0.02298    Positive: 0.95821
  Relevance	0.03070

• Content Details

  Content ID	2412682
  Key	43a53f43-b992-4336-9137-15a49f124c4c
  Content	ADJUSTED EBITDA OF $120 MILLION AND FREE CASH FLOW OF $78 MILLION ES AND EI BACKLOG STABLE AT $1.3 BILLION AND $1.6 BILLION, RESPECTIVELY, PROVIDING STRONG OPERATIONAL VISIBILITY BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO OF 1.9X AT THE END OF Q3/24, WITHIN THE COMPANY'S TARGET RANGE OF 1.5X TO 2.0X CAPITAL SPENDING GUIDANCE FOR 2024 UPDATED TO $80 MILLION TO $90 MILLION WITH GROWTH SPENDING EXPECTED TO REMAIN BELOW LONG-TERM AVERAGE IN 2025 CALGARY, Alberta, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Enerflex Ltd. (TSX: EFX) (NYSE: EFXT) ("Enerflex” or the "Company”) today reported its financial and operational results for the three and nine months ended September 30, 2024. All amounts presented are in U.S. Dollars ("USD”) unless otherwise stated. Q3/24 FINANCIAL AND OPERATIONAL OVERVIEW "Enerflex's third quarter results reflect solid execution across the Company's business lines, as well as our hard work over the last few years building a strong, resilient company positioned for sustainable growth and value creation,” said Marc Rossiter, Enerflex's President and Chief Executive Officer. "EI and AMS, our recurring revenue business lines, continue to deliver steady results and we are pleased with the strong execution in our Engineered Systems business line. We are further enhancing the profitability of our core operations, reducing SG&A, and streamlining our geographic footprint, and look forward to reporting on our continued progress.” Rossiter stated, "Thus far in 2024, we have successfully reduced leverage to within our target range of 1.5x to 2.0x, been disciplined with growth capital and continued to reduce the cost of our debt. Visibility across the Company's business remains solid, including approximately $1.6 billion of contracted revenue supporting our EI assets and a $1.3 billion ES backlog. As a result, Enerflex is able to increase direct shareholder returns with the Board approving a 50% increase to our quarterly dividend.” Preet Dhindsa, Enerflex's Senior Vice President and Chief Financial Officer, stated, "As a result of our continued focus on financial discipline and operational execution, we have repaid $268 million of debt since the beginning of 2023 and reached our target leverage range of 1.5x to 2.0x. We expect to make further progress in coming quarters and remain committed to lowering net finance costs and optimizing the Company's debt stack. This is reflected in our decision to redeem 10% of our Notes in early Q4/24.” "In line with our efforts to maintain a healthy balance sheet and optimize operations, we are revising our guidance for capital spending in 2024 to $80 million to $90 million compared to previous guidance of $90 million to $110 million. We continue to deploy selective growth capital to customer supported opportunities in the U.S. and Middle East that are expected to generate attractive returns and deliver value to Enerflex shareholders,” added Dhindsa. SUMMARY RESULTS September 30, September 30, These KPIs are non-IFRS measures. Further detail is provided in the Non-IFRS Measures ” section of this MD&A. Refer to the "Adjusted EBITDA” section of this MD&A for further details. Determined by using the trailing 12-month period. Enerflex's interim consolidated financial statements and notes (the "financial statements") and Management's Discussion and Analysis ("MD&A") as at September 30, 2024, can be accessed on the Company's website at www.enerflex.com and under the Company's SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov/edgar , respectively. OUTLOOK Industry Update Demand has remained steady across the Company's business lines and geographic regions, including high utilization of EI assets and the AMS business line. Enerflex's EI product line is supported by customer contracts, which are expected to generate approximately $1.6 billion of revenue during their current terms. Complementing Enerflex's recurring revenue businesses is the ES product line. ES results will be supported by a strong backlog of approximately $1.3 billion in projects at September 30, 2024, with the majority of this work expected to convert to revenue over the next 12 months. Demand for new ES equipment and services in North America has been impacted by extended weakness in domestic natural gas prices. This, combined with the anticipated overall mix of projects in Enerflex's ES backlog, is expected to result in ES gross margin before depreciation and amortization more consistent with the historical long-term average for this business line. Notwithstanding, near-term revenue for this business line is expected to remain steady and the medium-term outlook for ES products and services continues to be attractive, driven by increases in natural gas, oil, and produced water volumes across Enerflex's global footprint and decarbonization activities. The fundamentals for contract compression in the U.S. remain strong, led by increasing natural gas production in the Permian and capital spending discipline from market participants. Enerflex will continue to make selective customer supported growth investments in this business. Capital Spending Enerflex expects full-year 2024 capital spending to be below its previous guidance range of $90 million to $110 million. The Company now expects capital spending in 2024 to be $80 million to $90 million, which includes approximately $60 million for maintenance and PP&E capital expenditures. Enerflex continues to make selective growth investments in its EI business line that are expected to generate attractive returns and deliver value to Enerflex shareholders. Although Enerflex continues to develop its capital spending plans for 2025, the Company expects growth capital will remain below its long-term average. Similar to 2024, continued disciplined capital spending will focus on customer supported opportunities in the U.S. and Middle East. Further details will be provided in conjunction with the release of the Company's full-year 2025 guidance in early January 2025. Capital Allocation Providing meaningful direct shareholder returns is a priority for Enerflex. With the Company now operating within its target leverage range of bank-adjusted net debt-to-EBITDA ratio of 1.5x to 2.0x, Enerflex is able to increase direct shareholder returns. This is reflected in the Board of Directors' decision to increase the Company's quarterly dividend by 50%. Going forward, capital allocation priorities could include further increases to the Company's dividend, share repurchases, disciplined growth capital spending, and/or further repayment of debt that would help in lowering net finance costs. Allocation decisions will be based on delivering value to Enerflex shareholders and measured against Enerflex's ability to maintain balance sheet strength. DIVIDEND DECLARATION Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of CAD$0.0375 per share, payable on January 16, 2025, to shareholders of record on November 26, 2024. CONFERENCE CALL AND WEBCAST DETAILS Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, November 14, 2024 at 8:00 a.m. (MDT), where members of senior management will discuss the Company's results. A question-and-answer period will follow. To participate, register at https://register.vevent.com/register/BI8422c47e8fb8449fb752892d24f2c1e6 . Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at www.enerflex.com under the Investors section or can be accessed directly at https://edge.media-server.com/mmc/p/y2vuep4e/ NON-IFRS MEASURES Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex's performance. Refer to "Non-IFRS Measures" of Enerflex's MD&A for the three months ended September 30, 2024, for information which is incorporated by reference into this news release and can be accessed on Enerflex's website at www.enerflex.com and under the Company's SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov/edgar , respectively. ADJUSTED EBITDA September 30, 2024 America America Hemisphere
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  Publisher Name	Manila Times (#3842)
  Publisher URL	https://www.manilatimes.net
  Description	None
  Trust Flow Score	24
  Citation Flow Score	33

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  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
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  Weight	10