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ENG Strategically Positioned to Capitalize on Construction Industry Growth despite Slumping Energy Commodity Prices
According to a report by Dodge Data & Analytics, a leading provider of North American construction data, the domestic construction industry is expected to expand by nine percent in 2015, building upon the five percent growth achieved last year. For ENGlobal Corp. (NASDAQ: ENG), this forecast industry performance could provide a platform for improved results through the company’s award-winning engineering and construction division.
ENGlobal’s engineering and construction group delivers a range of innovative, cost-effective automation, instrumentation and specialty construction projects to customers around the planet, particularly in energy market sectors. By offering everything from feasibility studies and conceptual design to turnkey project responsibility, the company has built a formidable presence in the engineering, procurement and construction management (EPCM) market for more than a quarter of a century. With a global reputation for state-of-the-art plant automation systems, ENGlobal has become a mainstay on some of the engineering industry’s most prestigious lists, including Engineering News Record magazine’s ‘Top 500 Engineering Design Firms’, which has listed the company annually for more than a decade.
In recent months, the company has been impacted by the downturn in energy commodity prices, which has affected many of its early 2015 orders. Despite this market turbulence, ENGlobal has remained well-positioned for future expansion by refining its operational focus toward projects with low levels of risk. As of the release of its first quarter results, the company reported a healthy cash balance of more than $24 million, providing the flexibility needed to weather the current market slowdown.
“While there is always room for improvement, I believe we are in a strong financial position and poised for future growth,” Mark Hess, chief financial officer of ENGlobal, stated in a news release. “We have pared the company down to a smaller, more focused operation and reduced the risk profile of the projects we are undertaking… These and other actions have allowed the company to remain profitable, with positive cash flow during this downturn.”
For prospective shareholders, ENGlobal’s versatility in the face of less than ideal market conditions demonstrates the valuable industry experience of its management team and makes the company an intriguing investment opportunity moving forward. Look for ENGlobal to lean on its proven track record of innovative EPCM solutions in order to promote continued industry growth in the months to come.
For more information, visit www.englobal.com
