Enerflex: Rises on 2020 spending cut, higher Q1 EBITDA

Enerflex

08/05/2020 17:25

** Shares of oilfield services and equipment provider 
 EFX.TO  rise 8.4% to C$5.845 in morning trade 
    ** Co on Thursday cut 2020 spending from ~C$210 mln to ~C$90
mln  urn:newsml:reuters.com:*:nASA00OZI
    ** Said all manufacturing facilities, rental and service
operations are open and have been operational since the
beginning of the COVID-19 pandemic 
    ** Brokerage Alta Corp Capital says while North America
continues to face significant headwinds given sharply reduced
E&P budgets, co's international opportunity set has been
significantly more resilient despite COVID-19 related
restrictions 
    ** EFX also reported ~28% increase in Q1 EBITDA to C$70.8
mln; reported adj. EBITDA of C$ 67 mln, flat year-over-year 
    ** Brokerage Raymond James says the adj-EBITDA was right
in-line with consensus, but it got there with higher margins and
lower revenues than the consensus was looking for
    ** EFX said Canadian and U.S. regions have reduced their
total workforce by 20% from January 1 to May 1, and that global
workforce reductions in 2020 are expected to yield C$33 mln-C$35
mln in annualized savings
    ** Stock down 52% YTD 
    

 (Reporting by Shradha Singh in Bengaluru)
 ((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780
Ext: 2804, outside U.S. +91 80 6182 2630;))