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ENG Doubling Down On Proactive Delivery of Top Shelf Automation & EPCM Capabilities for Energy Sector
In the face of some of the roughest energy markets in recent history, energy sector-focused EPCM (engineering, procurement and construction management) and automation firm ENGlobal (NASDAQ: ENG) has managed to trim the fat and prosper where other companies have faltered, showing over $21 million in Q2 profits (period ended June 27), net income of $0.03 per diluted share, healthy gross profit margins of nearly 22 percent, and zero borrowings under its current credit facility. ENGlobal has even doubled-down on an already deep bench of industry-leading management talent, with the recent appointment of a new GM for the company’s bread and butter, midstream energy projects, as well as a new GM for the automation engineering segment.
Building on a significant track record of unparalleled safety and successful project execution that has drawn on a wide variety of automation, engineering, construction and project management capabilities in the upstream, midstream and downstream areas, ENG’s tapping of two highly experienced, senior management assets is a clear sign to investors of how serious the company truly is. Grabbing 30-year midstream transportation projects veteran, John Offutt, to head up its Tulsa and Houston midstream operations, as well as Robert Sammons, who will focus on growing ENG’s automation footprint (applying his 25 plus years in the game to overseeing the company’s ongoing automation projects and technologies), is a fierce one-two punch for ENGlobal, thrown at a time when less adroit sector players at the same level are mostly scared to make a move.
This aggressive move by ENG shows how committed the company is to delivering top shelf engineering and related project services to the domestic and international energy markets. For contracts such as the one awarded back in April by a major midcontinent refiner, which pegged ENG to design and engineer an essential hydrodesulfurization unit (used to pull impurities containing nitrogen and sulfur out of crude oil). Slated to wrap sometime this year before December, ENG chalks up the award of such influential contracts as the hydrodesulfurization unit project to the immense scheduling benefits its diverse capabilities and national infrastructure footprint allow, as well as the sheer efficiency of the company’s cost management services.
ENGlobal has the talent, managerial prowess, forward-looking vision, industry reputation, and most importantly the diverse project execution skills that are collectively necessary to remaining dynamic, even as other sector players become stultified amid the ongoing downturn cycle in energy prices. An inevitable rebound into midstream CAPEX by energy firms, particularly in lagging areas like natural gas pipeline infrastructure and refining capacity, could open many doors for ENG in coming months and years, and this is even truer in emerging markets than it is here in the United States. Rough projections moving forward indicate that, globally, as much as 40 percent of all infrastructure build out in coming years will be energy sector related, and for a multidisciplinary microcap powerhouse like ENG, this spells the potential for big profits.
These combined conditions give a company like ENGlobal, with its eminent reputation, significant momentum. We are talking about an automation and EPCM contender here that routinely punches above its own weight class and has been ranked among the top 500 engineering design firms for over a decade by such trusted industry publications as Engineering News-Record.
Take a closer look at the company by visiting www.englobal.com
