2003 Annual Report - Enerflex

POWERThe Power operating unit designs and fabricates power generation systems as stand-alone equipment packagesor on a turnkey, installed basis. Our expertise includes co-generation facilities, turbine, Diesel, and gas reciprocatingunits.2003 Operational Highlights• Enerflex Power completed and shipped 18 power generation packages in 2003.• An exclusive alliance was formed with Dunlop Standard Energy for turbine power plant and co-generationsolutions.• We were selected to provide a 3.3 megawatt turbine for ATCO Electric in Jasper, Alberta.• An 800 kilowatt flare gas-fuelled generator package was installed in central Alberta.• Power was awarded a $2.2 million project involving four generator packages for Tanzania.2004 OutlookAs 2004 begins, Power is implementing reduction in costs to address competitive margin issues in the reciprocatingunit market. With customers’ capital spending anticipated to maintain a steady pace from the last half of 2003,revenues are expected to be similar in 2004. Presson’s joint venture operation in Pakistan will provide an impetusfor increased penetration in that market.MECHANICAL SERVICEMechanical Service provides field maintenance services, equipment and parts to the oil and gas industry. With over350 highly trained personnel, Mechanical Service operates in Canada as Pamco and Jiro Service, in the UnitedStates as EFX Compression USA, in the Netherlands and Germany as Landré Ruhaak, in Australia as Gas DriveSystems, and in Indonesia at PT Gas Drive Systems Indonesia.2003 Operational Highlights• Mechanical Service completed 42,829 service assignments, compared to 41,985 in 2002.• Margins were maintained despite reduced demand for parts and preventative maintenance.• Mechanical Service became a distinct operating unit with the appointment of a Vice-President withworldwide responsibility.• Pamco renewed its Waukesha Engine Dresser Inc. distributorship in Canada.• Our international market reach was extended through the establishment of PT Gas Drive Systems Indonesiaand the opening of a new facility in Jakarta.• PT Gas Drive Systems Indonesia benefited from the total Enerflex solution approach, assisting with startupand commissioning of the PT Wahana Insannugraha gas plant at Cemera, Indonesia.• Landré Ruhaak gained recognition as full-service provider for co-generation packages through a contract forthe management and maintenance of 285 packages in the Netherlands.Enerflex 2003 Annual Report21