2003 Annual Report - Enerflex

• Syntech’s Northwest region in northern Alberta and British Columbiadelivered strong performance, with the completion of two large projects forDuke Energy and Blackrock Ventures. Syntech also had solid performancein its Central Alberta and Southern Alberta and Saskatchewan regions.• Syntech was a key player in the PT Wahana Insannugraha gas plant atCemera, Indonesia and a compression-dehydration facility for CenturionPetroleum Corporation in Egypt.• An Original Equipment Manufacturer agreement was signed with Altronic,Inc. to assemble and market Altronic and Exacta-based controls in Canada.• Our cost structure was reduced through the elimination of unprofitableproduct lines, selling our interest in a United Arab Emirates joint venture,closing of our United States branch and relocating several Canadianbranches.2004 OutlookFor 2004, Syntech anticipates commodity prices and drilling activity will remainclose to 2003 levels, resulting in moderate growth in customer spending. This willresult in modest revenue growth. The unit will therefore focus on enhancing itscompetitiveness and significantly increasing operating margins by reducing costs.Initiatives include working with suppliers to reduce material purchasing costs, bettermanagement of inventory and vehicle fleet optimization. Syntech also plans toreduce location costs and increase cross-selling opportunities by co-locating itshead office in Enerflex’s Calgary head office building in mid-2004. In addition,Syntech will enhance its industry leadership with the introduction of new andinnovative digitally integrated control panel systems and other automation solutions.Enerflex 2003 Annual Report25