Cole Pereira's questions to Enerflex Ltd (EFXT) leadership • Q1 2024
Question
Cole Pereira questioned whether the cost inflation issues on the Kurdistan facility were specific to that region or could occur on future projects, and if the asset's security risk profile is unique compared to other Middle East operations.
Answer
President and CEO Marc Rossiter assured that there are no other Engineered Systems projects in the backlog with a similar level of construction risk, as the company's strategy is to focus on work completed within its own manufacturing facilities. He confirmed this project is the only one in that specific region of Iraq and that Enerflex's other Middle East infrastructure assets are primarily in Oman and Bahrain, countries with decades of safe and successful operational history. Rossiter emphasized that the company's backlog and investment strategy are deliberately shaped to de-risk the portfolio.