ENGlobal Corporation

A large portion of that plant will be built in our new fabrication shop in West Houston. We're also active in waste to energy, in hydrogen, and methanol. We expect a great result in this. For our government service, we have been awarded from the Tulsa Public School a SCADA system. We are working on several other bids in this area. Our automation group is also very active with several main clients. Integration, we continue our fabrication of the trailer program. We're hiring key people and training people for this. And generally, activities looks really good for the later part of this year and continuing in 2023. Over to you. Thanks, Roger.

As you've just heard, there are many opportunities in our business that we are very excited about. I'd like to highlight some of the progress that we've made over the last 12 months or so. Through the efforts of our team, we have steadily increased our backlog from 8.4 million at the end of Q3 last year to over 19 million at the end of this quarter. That represents over 120% improvement in our backlog. At the same time, we have steadily increased our revenue over the last four quarters from $5.9 million in Q3 of last year to $6.9 million in Q4, $7.3 million in Q1, and $11.4 million this quarter. The Q2 increase over Q1 this year represents a 56% sequential increase. Our gross profit increased this quarter, as Darren mentioned, due to our ability to utilize our people more efficiently and reduced expenditures on proposals, as he mentioned. This is a testament to the quality of the people that we have attracted and retained throughout COVID and during our rebuilding process. We could not have achieved these results without our people, and I could not be more proud of our employees. As you've heard from Roger, our prospects for awards in Q3 and Q4 of this year look very good. So our outlook for the remainder of the year also is very positive. In addition to our core businesses that Roger touched on, we announced in May the acquisition of Calvert Group Belgium, which has a license for proprietary small-scale gas-to-liquids technology utilizing a gliding arc plasma and a modified Fischer-Tropsch process. This acquisition fits well within Englobal's core capabilities of engineering, design, fabrication, automation, and commissioning, but more importantly, broadens our offerings to now include a technology solution. We are currently incorporating this technology into standard GTL trains of various sizes, ranging from 25 barrels per day to 100 barrel per day, designed to process 250,000 to 1 million standard cubic feet of gas per day. We expect to complete the 25-barrel-per-day design soon and deliver one mid-next year due to lead times on major components. And we'll begin working on larger 50- and 100-barrel-per-day designs in the coming weeks. We expect these trains to sell for between $4 and $9 million per train and we expect that we could produce as much as one per week when we are in full production. Last year, over 143 billion cubic meters of gas was flared worldwide, according to the Global Gas Flaring Reduction Partnership and World Bank. One solution to reduce the amount of gas flared each year is to convert it in an economical way to synthetic fuel, diesel, or naphtha. and we believe our GTL plants will accomplish this. Our initial approach to distribution of the GTL trains is through partnerships with service companies in countries with the highest levels of gas flaring. To date, we've signed an exclusive marketing agreement with OilServe, which we announced in July, covering the countries of Iraq, Algeria, Libya, and UAE. These markets alone represent 34 billion cubic meters of gas flared per year, or roughly 1.2 trillion standard cubic feet of gas flared annually. So as you can imagine, the market for this solution is very large. I'm pleased with where we are today and with what our outlooks are for the near future and the coming years. I think we have a very strong base to build from, and we have a lot of opportunities in our pipeline. So at this point, I'd like to turn the call over to questions. Operator?

Thank you. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your telephone keypad at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please wait whilst we poll for questions. Thank you. Your first question is coming from Jeffrey Campbell of Alliance Global Partners. Jeffrey, please ask your question.