2003 Annual Report - Enerflex

The strengthening of demand for Compression’sproducts and services experienced in the latter halfof 2003 is expected to continue throughout 2004.2004 OutlookThe strengthening demand for Compression’s products and services experienced in the latter half of 2003 isexpected to continue throughout 2004. Perhaps more than other divisions, EFX Compression and CompressionServices are seeing results from the re-alignment of management and the return of an entrepreneurial spirit to theCompany’s activities. Throughout all divisions, 2004 will see a focus upon employee retention and recruitment.Facility utilization remains the key driver for Compression, with signs being positive from both domestic andinternational markets.EFX Compression will re-introduce its BTB “Back-to-Basics” line of standardized products. Combined withcontinuing success with the Gen III A Series, EFX Compression is regaining its industry dominance.Compression Services is implementing a gas plant and compressor optimization program for customers, as wellas for the Enerflex lease fleet, that will enhance production, gain efficiencies and reduce operating costs.Compression Services will be reintroducing the Phoenix line of completely refurbished compressor packagescarrying full warranty.The Jiro division will expand its line of standardized screw compressor packages in an effort to consolidate its sub-400horsepower customer base in the Western Canadian Sedimentary Basin and to further penetrate foreign markets.EFX Compression USA will be looking to significantly increase its bookings in 2004. Key markets for sales activitiesinclude specialty and high specification compressor packages in the United States and Latin America. LatinAmerica will yield improved results with the appointment of a dedicated sales representative and key agencyagreements signed with customers in the region.Enerflex 2003 Annual Report20