FILED BY ENERFLEX LTD.
PURSUANT TO RULE 425 UNDER THE SECURITIES ACT OF 1933, AS AMENDED
AND DEEMED FILED PURSUANT TO RULE 14a-12
under the Securities and Exchange Act of 1934, as amended
SUBJECT COMPANY: EXTERRAN CORPORATION
COMMISSION FILE NO. FOR REGISTRATION STATEMENT ON
FORM F-4 FILED BY ENERFLEX LTD.: 333-263714
Q1 2022 Update with Marc: Video Transcript
Hello to all
my Enerflex teammates. This is Mark Rossiter president, and CEO.
Im happy to be in Calgary and give you some information on our Q1 results and
operational update. Id like to start with the brief discussion on safety.
We had four recordable incidents in the quarter. Interestingly, three of
those incidents were slips, one in Canada, one in Latin America and one in in the Middle East International segment.
The Canadian one was on ice, the one
in Latin America was on grading, and the one in the international segment was on rainwater. This sort of shows you that slips are a risk that we face around the world and were going to have an increased level of awareness and communication on
preventing slip injuries.
From a financial point of view, in Q1 we generated $40 million in EBITDA, which is pretty much right at what our investors
or what we call the street expected from us.
Its good to meet the streets expectations. Its even better to exceed them, but well take
and meet this quarter quite happily. One of the good things that happened in the quarter that I think will be well received by investors, and we should be quite happy as Enerflex employees, is that we had a great quarter for bookings for new
Engineered Systems equipment. The bookings number total 273 million Canadian dollars, which is the biggest quarter in in multiple years that was driven by activity in every single region.
One of the challenges we experienced in the quarter was profit margins on AMS and Engineered Systems. I dont think its a surprise to anybody that
we had supply chain challenges in the quarter. If youre in the ES business or the AMS business, or if youre doing operations in our in our BOOM and Rentals, you know that getting parts, getting materials, has been extremely challenging
in the first quarter. And I would very much like to thank everybody for all the hard work in trying to meet those challenges as best you can. It doesnt change the fact that our profitability in AMS and ES is below historical averages. I expect
the supply chain challenges to continue for the whole year, and it begs the question, what can Enerflex people do about it?
Well, I think theres
probably three things I would ask for all Enerflex people to do, especially if youre a customer facing person in sales, project management, regional management, what have you. The first and most important thing is, communicate with your
customers. Customers want to know whats going on with us with our supply chain. Communicate with them all the time about the realities of our system.
A secondarily, I would recommend that you recommend to clients that they should lock in costs. I expect costs are going to escalate all year. The sooner they
make a decision on equipment, maybe even lock in major equipment before they make a final decision on the exact design of the equipment. They can save some money on those things, so encourage customers to lock in their costs and to not wait because
we fully expect it will continue to be more and more expensive all year.