ENG Provides Revenue Update on Recently Announced Q4 Contracts

Rhea-AI Summary

ENG (NASDAQ:ENG) announced contract awards expected to generate over $12 million in revenue, primarily recognized in Q4 2022. The projects include solar farm installations in Texas, a master services agreement with an integrated oil services company, and multiple compressor station upgrades. The company's new modular fabrication facility and expanded field services office are anticipated to boost future profitability. Additionally, ENG is pursuing multiple gas-to-liquids opportunities exceeding $100 million, expecting successful bids within six months.

Positive

• Contract awards expected to generate over $12 million in revenue.
• Revenue recognition mainly in Q4 2022.
• New fabrication facility and office expansion likely to enhance future profitability.
• Bidding on gas-to-liquids projects valued over $100 million with expectations of closing within six months.
• Government services division revenue ramp-up expected to continue into 2023.

Negative

• None.

HOUSTON, TX / ACCESSWIRE / November 30, 2022 / ENG (NASDAQ:ENG), a leading provider of innovative project delivery solutions for the energy industry, today said that six contract awards announced on the company's November 8, 2022 third quarter results conference call will produce minimum combined revenue of over $12 million, most of which will be recognized in this year's fourth quarter. The awards, which were received thus far in the fourth quarter, include:

• Construction installation services related to two solar farm projects in Texas;
• Signing of a master services agreement (MSA) with a leading integrated oil services company (IOC) resulting in construction and fabrication services for produced water booster station upgrade projects;
• Construction of remote instrument enclosures for a leading IOC in Houston;
• Construction and fabrication services for multiple compressor station upgrade projects in West Texas; and
• Engineering, procurement and construction services for a methanol prover and metering upgrade, compression station upgrades, fabrication of separators and related piping for multiple midstream oil and gas operators out of West Texas and New Mexico.

"We are very excited to receive these awards," said ENG president Roger Westerlind. "Not only will they make a positive impact on our fourth quarter financial performance, but also could stimulate major oil and gas and green energy contracts with these same IOCs going forward."

Mr. Westerlind added that, regarding its gas-to-liquids (GTL) technology, the company, via its OiLSERV partner in the Middle East, is currently bidding on some 10 opportunities with a total value in excess of $100 million and expects to close on at least one of these projects within the next six months.

Many of these opportunities are a direct result of the added production capacity provided by the company's new modular fabrication facility in Brookshire, Texas and its recently opened Permian Basin field services and construction office in Monahans, Texas, and are expected to continue to boost backlog and profitability in 2023, he said.

Lastly, said Mr. Westerlind, ENG's wholly-owned government services division (EGS) has seen a steady ramp-up of revenue in the second half of 2022 and is expected to continue this growth into 2023.

About ENG
ENG (NASDAQ:ENG) is a leading provider of complete project solutions for renewable and traditional energy throughout the United States and internationally. ENG 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 its 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 future 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 ENG'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/729377/ENG-Provides-Revenue-Update-on-Recently-Announced-Q4-Contracts

FAQ

What is the expected revenue from ENG's recent contract awards?

ENG expects to generate over $12 million in revenue from its recent contract awards.

How much of ENG's expected revenue will be recognized in Q4 2022?

Most of the expected revenue from the contract awards will be recognized in the fourth quarter of 2022.

What types of projects are included in ENG's recent contract awards?

The contract awards include solar farm installations, compressor station upgrades, and construction services for an oil services company.

What new opportunities is ENG pursuing related to gas-to-liquids technology?

ENG is currently bidding on approximately 10 gas-to-liquids opportunities worth over $100 million.

What impact will ENG's new fabrication facility have on its operations?

The new fabrication facility is expected to boost backlog and profitability in 2023.