Despite a downturn in energy commodity prices, ENGlobal Corp. (NASDAQ: ENG) has industry analysts intrigued after posting strong financial results for the first quarter of 2015.
“We ended the first quarter with a healthy cash balance and working capital of $24.4 million, and have no borrowings under our current credit facility,” stated Mark Hess, Chief Financial Officer of ENGlobal. “While there is always room for improvement, I believe we are in a strong financial position and poised for future growth.”
In an effort to remain profitable despite a slumping market, the company has focused operations on low-risk projects and minimized overhead costs. This positioning has contributed to ENGlobal’s strong performance thus far in 2015. The company’s Engineering and Construction division, in particular, has thrived in recent months. According to first quarter results, the division realized growth of more than four percent over the same period last year, providing promise of strong shareholder returns when energy commodity prices rebound.
“We have pared the Company down to a smaller, more focused operation,” stated William Coskey, Chairman and Chief Executive Officer of ENGlobal. “These and other actions have allowed the Company to remain profitable, with positive cash flow during this downturn.”
ENGlobal’s Engineering and Construction group serves a collection of market sectors including alternative energy, power generation and government. The company’s recent growth and reputation for quality work have helped establish ENGlobal among the top domestic design firms, claiming accolades from Engineering News Record, Business Week magazine, The Houston Chronicle and American Executive magazine. This performance has contributed to the company’s global reputation as a leading designer of state-of-the-art plant automation systems.
In March, the company bolstered this reputation through the announcement of a five year extension to its Professional Services Agreement with Xcel Energy. A major U.S. electric and natural gas company with annual revenue exceeding $10 billion, Xcel has teamed with ENGlobal on a variety of substantial capital programs, including a 60 mile West Main segment pipeline replacement. Continued confidence from clients in the capabilities of ENGlobal will have a strong positive impact on the company’s future expansion potential.
Moving forward, ENGlobal appears to be poised for continued growth in the vital energy market. With one of the industry’s most experienced management teams leading the way, the company is in a strong position to deliver significant returns to shareholders in the years to come.
For more information, visit www.englobal.com
