Enerflex Ltd.

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Interflex Limited 2020 Third Quarter Conference Call. At this time, I would like to turn the conference over to Mr. Stephan Ali. Sir, please begin.

Thank you, Operator, and good morning, everyone. Here with me are Mark Rossiter, Interflex's President and Chief Executive Officer, Sanjay Bishnoi, Interflex's Senior Vice President and Chief Financial Officer, and Ben Park, Interflex's Vice President, Corporate Controller. During this call, we'll be providing our financial results for the three months ended September 30th, 2020, a brief commentary on the performance of our three business segments, and a summary of our financial position. Today's discussion will include forward-looking statements regarding Enerflex's expectations for future performance and business prospects. Forward-looking information involves risks and uncertainties, and the stated expectations could differ materially from actual results or performance. For more information, please see the advisory comments within our news release, MD&A, and other regulatory filings. Approximately one hour following the completion of this call, a recording will be available on our website under the Investors section. During this call, unless otherwise stated, we'll be referring to the three months ended September 30, 2020, compared to the same period of 2019. We'll proceed on the basis that you've all taken the opportunity to read yesterday's press release. I will now turn the call over to Mark.

Thanks Stefan, and good morning everyone. Before discussing the quarter, I want to first thank all of Enerflex's employees for their continued positivity and commitment to safety protocols. Our people have worked diligently to limit the impact of COVID-19 on our business, allowing our facilities and assets to continue operating with minimal disruption. While our ability to maintain unrestricted access to active construction sites was challenged by governmental health and safety protocols in certain countries, We were able to complete and commission three boom projects in the quarter and expect to commission a fourth boom project in the fourth quarter of 2020, barring additional worksite access restrictions and delays. The oil and gas sector continues to see uncertainty around commodity prices, driven by the impact of COVID-19 on demand for energy products. Recent improvements in natural gas benchmark pricing is helpful for industry sentiment, but will take time to translate to increases in customer capex, which is needed to drive the company's engineered systems bookings. Outside of our traditional engineered systems offerings, we are seeing increasing levels of interest in non-traditional applications, such as electrified compression and lower carbon intensity projects. While these are positives, we still anticipate that the broader weakness in engineered systems bookings will persist for at least the remainder of this year and into 2021. Our aftermarket services business continues to show resilience compared to prior downturns, supported in part by the return of North American production that was shut in during the early stages of the pandemic. AMS is most impacted when production volumes decrease, but if wells are flowing, equipment must be serviced in order to run reliably. With broader service capabilities compared to prior downturns, and service personnel in all operating regions, and Reflex is better positioned to manage an AMS downturn in any single region. During the quarter, our global asset ownership platform performed well, with our US fleet maintaining an average utilization of 81% on steady demand for contract compression. In addition, we saw contributions from boom projects in Argentina and Brazil that were commissioned in this quarter, with additional contribution from the Middle East boom expected to commence in the fourth quarter of 2020. While stability from the business line is expected, significant weakness in the commodity price environment may cause producers in the USA segment to slow production, which could affect demand for our products and services. In contrast, business in our rest of world segment is less sensitive to commodity price fluctuations, given that the drivers are more heavily linked to factors such as satisfying local electricity demand. This dynamic has translated to recent successes in Latin America, including renewed interest in certain units of our Mexican rental fleet and the sale of a power and gas treating plant in Columbia that will reduce carbon emission intensity by using recaptured flare gas for local electricity generation. Similarly, we are seeing projects in the Middle East being developed to increase the role of natural gas in regional electricity generation. Enerflex has identified a number of opportunities in the rest of the world segment. However, the company's intent on maintaining capital discipline and in the current environment will only preserve the most attractive projects. Overall, 2020 has proven to be a difficult year for the engineered systems business with bookings and revenue down significantly from levels seen in previous years. Despite the headwinds faced by the engineered systems product line, we anticipate that the investments we've made in our asset ownership and AMS businesses will drive consistent financial performance for the remainder of 2020 and into 2021. We continue to monitor performance and outlook in all operating regions and make cost reduction decisions in response to the turbulence across the energy industry. Remaining vigilant in this regard while maintaining a defensive balance sheet should keep us well positioned to weather this downturn and succeed as the industry recovers. I will now turn things over to Sanjay to review our financial results.