Enerflex Ltd.

Thank you for standing by, and welcome to the InterFlex first quarter 2021 results webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to your host, Stephan Ali, Director of Investor Relations.

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 March 31st, 2021. 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 investor section. During this call, unless otherwise stated, we'll be referring to the three months ended March 31st, 2021, compared to the same period of 2020. We'll proceed on the basis that you've all taken the opportunity to read yesterday's press release. I'll now turn the call over to Mark.

Thanks, Stephan, and good morning, everyone. Our first quarter results benefited from the continued resilience of our recurring revenue businesses and a nascent recovery in engineered systems bookings activity. While industry spending is in the early stages of recovering, a stable commodity price environment is assisting our customers in affirming their 2021 spending plans, resulting in increased bidding activity across our regions. In particular, we have started to see meaningful opportunities for new equipment orders in our Canada and rest of world segments, and are fielding an increasing number of inquiries for solutions that can lower the intensity of carbon emissions. While it is certainly a positive to see a quarter-over-quarter build in our engineered systems backlog for the first time since early 2019, additional bookings will depend on the pace at which bidding opportunities are converted to executed contracts, and our expectation is for bookings to remain relatively subdued through the first half of 2021 with a modest recovery later in the year. Our aftermarket services business was stable through the quarter with improved contributions from our Canada and rest of world segments versus the comparative period, but was impacted by a combination of seasonal weakness and delays caused by extreme weather events in Texas. We are expecting improvement in AMS revenues throughout the year as the industry continues to recover. Our global asset ownership platform continues to perform very well, proving its resilience through the downturn and supporting the company's gross margin profile. In our rest of world segment, all assets within our boom portfolio are performing as anticipated, and we continue to see opportunities to grow our portfolio in the Middle East and Latin America. In addition, our U.S. contract compression fleet has grown to 375,000 horsepower and maintained a first quarter average utilization rate of 82%, which we expect to gradually improve this year. Overall, I am proud of our team's efforts to keep our assets performing to the benefit of our customers and stakeholders. Turning to our energy transition business, our analysis of addressable markets continues to evolve and has so far presented an interesting and diverse opportunity set across several aspects of the energy value chain. EnerPlex's near-term focus is to continue its work on crystallizing strategies that ensure a sustainable growth-oriented and profitable approach to energy transition, and those strategies will be communicated in due course. Throughout 2021, our focus will remain on strong execution and maintaining the performance of our assets. It is refreshing to see some renewed optimism in the energy space as the industry looks forward to the opportunities that will present themselves in the post-pandemic era. Our financial discipline through the downturn leaves us well-positioned to compete for these new opportunities moving forward. I will now turn things over to Sanjay to review our financial results.