ENG Adds On-site Construction to Client Services Suite; Improved Growth and Earnings Projected

Rhea-AI Summary

ENG (NASDAQ:ENG) has expanded its client services by adding self-performing on-site construction capabilities, transitioning from an engineering services company to a complete engineering, procurement, and construction (EPC) provider. This shift is expected to enhance ENG's project scope and boost revenue. CEO Mark A. Hess announced that the company is already implementing this service in East Houston, Texas. Additionally, Johnny Hemphill has been hired as construction manager to oversee and expand on-site construction projects, aiming to improve overall profitability.

Positive

• Addition of on-site construction services expected to increase project scope and revenue.
• Transition to a complete EPC service model can enhance competitiveness in the energy sector.
• Hiring of an experienced construction manager to drive sales and manage projects.

Negative

• None.

HOUSTON, TX / ACCESSWIRE / October 26, 2021 / ENG (NASDAQ:ENG), a leading provider of innovative, project delivery solutions for the energy industry, today announced it has added self-performing on-site construction to its list of client services. This addition is expected to further increase ENG's scope of work on its current projects, qualify it for additional projects and provide its clients with a single source for project execution.

Historically, ENG's engineering, procurement, automation, integration and fabrication (EPF) services consisted of engineering and building construction modules in the company's facility and then transporting them to the site to be erected - but another company typically did the on-site erection of these modules. Now, however, ENGlobal has started performing this function and currently has an on-site construction team at work on such a project in East Houston, Texas.

"We have been transitioning ENG from an engineering services company to a complete project delivery engineering, procurement and construction (EPC) company and the addition of on-site self-performed construction now allows us to provide complete EPC services. While we will be starting on some smaller projects, over time this new on-site service, which makes ENG a complete EPC company, is likely to produce a meaningful bump in our revenue and profitability," said chief executive Mark A. Hess.

In addition, said Mr. Hess, ENG has hired a construction manager, Mr. Johnny Hemphill, to both manage the company's on-site construction activities and to spearhead sales outreach for additional on-site construction opportunities.

"We are thrilled to have Johnny on board to lead this new arm of our business. For the first time, ENG can truly offer a complete range of EPC services to diverse clients in all sectors of the energy industry -- and Johnny has established proven success in selling on-site services to them."

Across an 18-year career, Mr. Hemphill has landed and managed major construction projects for such recognized EPC companies as Wood Group, AECOM, and Flint Energy Services. These projects have been valued individually at between $200,000 and $57 million.

About ENGlobal

ENGlobal (NASDAQ:ENG) is a leading provider of complete project solutions for renewable and traditional energy throughout the United States and internationally. ENGlobal operates through two business segments: Commercial and Government Services. The Commercial segment provides engineering, design, fabrication, construction and integration of automated control systems as a complete packaged solution for our clients. The Government Services segment provides engineering, design, installation, operations, and maintenance of various government, public sector, and international facilities, specializing in turnkey automation and instrumentation systems for the U.S. Defense industry worldwide. Further information about the Company and its businesses is available at www.ENGlobal.com.

Safe Harbor for Forward-Looking Statements

The statements above regarding the Company's expectations, including those relating to its future results, its operations and certain other matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws and are subject to risks and uncertainties. For a discussion of risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ENGlobal's filings with the Securities and Exchange Commission, including the Company's most recent reports on Form 10-K and 10-Q, and other SEC filings.

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CONTACT:

Market Makers - Investor Relations
Jimmy Caplan
512-329-9505
Email: jimmycaplan@me.com

Market Makers - Media Relations
Rick Eisenberg
212-496-6828
Email: eiscom@msn.com

SOURCE: ENGlobal

View source version on accesswire.com:
https://www.accesswire.com/669615/ENG-Adds-On-site-Construction-to-Client-Services-Suite-Improved-Growth-and-Earnings-Projected

FAQ

What new services has ENG added recently?

ENG has added self-performing on-site construction services to its offerings, enhancing its capabilities as a complete EPC provider.

Who is leading the new on-site construction services at ENG?

Johnny Hemphill has been appointed as the construction manager to oversee on-site construction activities at ENG.

How is ENG expecting this new capability to affect its revenue?

ENG anticipates that adding on-site construction services will produce a significant increase in revenue and profitability over time.

Where is ENG currently implementing its on-site construction services?

ENG is currently implementing its on-site construction services in East Houston, Texas.

What is the significance of ENG's transition to a complete EPC company?

The transition allows ENG to offer a complete range of services, making it more competitive in securing diverse projects across the energy sector.