In the second quarter of 2015, ENGlobal Corp. (NASDAQ: ENG) recorded its sixth straight quarter of profitable results. In large part, these results were attributable to the consistent performance of the company’s engineering and construction segment, which accounted for over 61 percent of ENGlobal’s total revenue for the period. Despite the recent drop in oil and gas prices, which continue to hover near six-year lows, the segment’s performance was a mild improvement over the second quarter of 2014, further highlighting the effectiveness of the company’s current strategy aimed at expanding its market share and locating new clients and business opportunities.
“ENGlobal’s response to the current energy marketplace has been to increase our efforts in developing new business,” William Coskey, P.E., chairman and chief executive officer of ENGlobal, stated in a news release. “While we are excited about several new opportunities and client relationships that this internal process has produced, it also appears to be a great time to consider strategic acquisitions.”
In addition to its profitable results in the second quarter, ENGlobal continues to maintain a favorable balance sheet, which should give the company an opportunity to capitalize on current market conditions through an aggressive pursuit of new client relationships and potential strategic acquisitions. As of its latest filings, ENGlobal reported a healthy cash balance and working capital of $25.4 million with no borrowings under its current credit facility.
Over the past three decades, ENGlobal has built a significant presence in a collection of energy markets through its unique commitment to innovation and cost-effective automation. With services ranging from feasibility studies and conceptual design to turnkey project responsibility, the company has established itself as a mainstay among the country’s top engineering firms. For this reason, ENGlobal has been ranked by Engineering News Record magazine as a Top 500 engineering design firm for more than 10 years.
ENGlobal’s strong results from its engineering and construction segment were supplemented by the performance of its automation segment. Although total revenue for the segment declined from the results of the previous year, the company was able to increase the segment’s gross profit margin by 7.4 percent in order to help it maintain profitability for the quarter.
For prospective shareholders, the company’s profitable results despite current market conditions continue to highlight the immense value of its experienced management team. Moving forward, look for ENGlobal to continue capitalizing on the opportunities presented by the current condition of the energy marketplace in order to promote strong results for the future.
For more information, visit www.englobal.com
