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
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