2003 Annual Report - Enerflex

Compression Services (formerly known as Re-engineered Solutions) – re-engineering and refurbishment ofexisting compression equipment both in a Calgary facility and at customer field locations; and,Power – power generation equipment fabrication in our main Calgary manufacturing facility;LeasingCompression, power generation, and natural gas processing equipment rentals, primarily in Canada.ServiceThe Service business segment provides a complete line of mechanical, and electrical, instrumentation and control(“EI&C”) services to the oil and gas industry through an extensive branch network in Canada, as well as operationsin the United States, the United Kingdom, the Netherlands, Germany, Australia, and Indonesia. Responsibility forCompression Services was transferred to Fabrication in the third quarter of 2003 and comparative figures have beenreclassified. Service is the Company’s largest business segment, employing 55% of our staff and generating halfof the Company’s revenue. Key performance metrics include labour utilization, top line revenue, gross marginpercentages, and general and administrative costs as a percentage of revenue.Through its various divisions, Enerflex is the authorized distributor for Waukesha engines and parts in Canada,Australia, Indonesia, Papua New Guinea, the Netherlands,Germany, and Spain. Mechanical Service revenues tend to befairly stable as equipment maintenance is required regardlessof the commodity price cycle.return onaverage equitypercent52.3 33.9 27.6 32.9 24.1 11.9 10.9 20.2 4.9 7.6Mike McKintyOperations ManagerMactronic94 95 96 97 98 99 00 01 02 03Enerflex 2003 Annual Report41