ENGlobal $ENG Up On US Army Corp of Engineers Contract

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Penny stock ENGlobal $ENG surged 18% in early trading on August 18, 2022, after the company announced a spot on a $20 million US Army Corp of Engineers contract.

ENG Wins Prime Spot on $20 Million Contract with US Army Corps of Engineers

On August 18, 2022, ENG (NASDAQ:ENG), a leading provider of innovative project delivery solutions, announced that its wholly owned subsidiary, ENGlobal Government Services, Inc. (“EGS”), has been designated as one of three prime contractors by the US Army Corps of Engineers (“USACE”) on a $20 million five-year contract to support and upgrade control system installations at hydroelectric facilities within the USACE’s South Atlantic region.

As per the terms of the contract, EGS will compete with the other two contractors for the award of task orders for such assignments as technology upgrades and refreshes of existing systems, new system designs and installations, and life cycle maintenance of new and existing systems.

The contract has been designated by USACE as Indefinite Delivery Indefinite Quantity, or IDIQ, meaning that the total quantity of services to be delivered by ESG and the other contractors cannot be determined at the present time. Therefore, this contract will not be included in EGS’s backlog until a task order under the contract is awarded.

Commenting on the new award, EGS senior vice president Kevin Holfeld said, “We are extremely proud to expand our services into the Army Corps of Engineers, offering USACE the same innovative and cutting-edge control systems technology we have been providing to the U.S. defense industry worldwide.

“For over fifteen years, ENG has been honored to provide wide-ranging global solutions to meet our government’s technology requirements, and through this new selection, we look forward to providing these services for many years to come.”

Today’s award follows a contract won by EGS on April 28 to implement a Supervisory Control and Data Acquisition, or SCADA, system upgrade and replacement for a large midwestern public school district.

EGS specializes in the turn-key installation and maintenance of automation and instrumentation systems for governmental entities worldwide.

ENG is a leading provider of innovative, complete project delivery solutions to the energy sector throughout the United States and internationally. ENG operates through two business segments: Commercial and Government Services. ENG’s Commercial segment provides services related to the engineering, design, automation, integration, fabrication and construction of up-stream, mid-stream and down-stream oil, gas and chemical processing. ENG’s Government Services group provides similar services to governmental entities.

ENG Reports Q2 2022 Results

On August 4, 2022, ENG (NASDAQ:ENG), a leading provider of innovative project delivery solutions for the energy industry, announced that for the second quarter ended June 25, 2022 it reported a net loss of $1.5 million, or $(.04) per share, on revenue of $11.4 million, compared with a net loss of $4.3 million, or $(.14) per share, on revenue of $11.1 million for the second quarter ended June 26, 2021.

“We have seen steady growth in our bookings, revenue and backlog over the last four quarters, said chief executive Mark A. Hess. Our revenue was $5.9 million in Q3 last year, $7.0 million in Q4 last year, $7.4 million in Q1 this year and $11.4 million this quarter, for example. In addition, our backlog has more than doubled from $8.4 million at the end of Q3 last year to over $19 million at the end of this quarter.”

“These increases are very encouraging and show that the plans we put in place are producing the desired results, continued Mr. Hess. These increases have also allowed us to utilize our people more fully, which, in turn, contributed to the increased gross margin.”

“These results do not include revenues we expect to generate from our field service operations recently started in the Permian basin and the GTL technology that we recently acquired. We expect to deploy our first field service crew this month and expect crews and resulting revenue to increase over time. We signed an agreement in July granting the Dubai-based oilfield services company OiLSERV the rights to license our GTL technology in Iraq, Libya, Algeria, and the UAE and we are seeing a lot of interest for this solution from the region. We are completing the designs for our small-scale GTL plants and expect to deploy the first commercial unit early to mid next year.”

“I am satisfied with the many emerging developments here at ENG, as well as with the improved outlook in both the traditional and renewable energy markets,” said Mr. Hess. “These events, we believe, will directly facilitate our continuing recovery and propel ENG to steadily improving performance going forward.”

For the six months ended June 25, 2022, the company had a net loss of $5.1 million, or $(.15) per share, on revenue of $18.7 million, compared with a net loss of $4.2 million, or $(.15) per share, on revenue of $23.5 for the six months ended June 26, 2021.

📈 ENGlobal $ENG Chart Technical Analysis

$ENG stock is in a technical strong uptrend. Short term indicators favor maintaining the current trend; however, the market is approaching overbought territory. Be watchful of a trend reversal.

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