Enerflex Ltd. had net earnings of C$17 million for the first quarter of 2019, up from C$10.9 million in the same period of 2018, as it continued to work down its record order backlog.
The Calgary, Alberta-based company provides gas compression and an array of production services and products worldwide.
Revenues jumped C$99 million to C$485 million, propelled by a C$101 million surge to C$293 million in U.S. operations.
“The first quarter of 2019 benefitted from our record backlog at Dec. 31, with strong revenue and gross margin realized from projects secured in the second half of 2018,” said J. Blair Goertzen, president and CEO.
He said the backlog is still more than C$1 billion but first quarter bookings of C$118 million were down C$183 million from a year ago. He said bookings should follow historical trends for the rest of the year.
He said Enerflex has been hampered by the availability of supplies and by its own fabrication capacity. The expansion of the company’s Houston plant is on schedule and additional capacity will be operational in the second quarter.
Goertzen said the depressed Canadian gas market is cause for concern and Canadian activity would remain subdued through 2019.
“In the near term, Enerflex has a positive outlook supported by continued strength in our backlog and high enquiry levels across all regions,” he said.