• E is up 44% YoY, outperforming the S&P Oil & Gas Equipment & Services Index, which is down 36% due to lower oil prices, a broader market pullback, and concerns over a potential recession sparked by trade tensions.
  • Although E has no direct U.S. exposure, its clients exporting energy products to the U.S. could be affected by Trump’s tariffs. However, the energy sector faces a lower 10% tariff versus  25% on most other goods. We expect Trump may reverse or soften these tariff measures due to their potential negative effect on U.S. consumers and businesses. If that happens, we would adopt a bullish stance on the energy sector, given Trump’s focus on boosting energy production, which we anticipate will improve investor sentiment across North American energy services.

 

Key Financial Data ($)      
YE Dec 31 $2,024 2025E 2026E
Cash 30,674,798 2,130,446 5,875,363
Working Capital $36,281,170 $3,120,473 $7,268,227
Total Assets $118,341,207.00 $113,861,453.00 $123,877,082.00
Total Debt $22,669,463.00 $10,551,700.00 $10,551,700.00
Revenue $34,646,888.00 $37,980,589.00 $43,218,630.00
Net Income $4,543,553 $6,879,936 $9,219,653
EPS $0 $0 $0

Price and Volume (1-year)

 

  YTD 12M
E -17% 44%
TSX 3% 15%
Sector* -26% -36%

 

Enterprise vs Larger Players 

 

E is up 44% YoY, making it the second-best performing stock on our list of oilfield services companies. Ranked third in 2024 revenue growth, with the same position projected for 2025

Gross margins in line; debt-to-capital notably below the sector average

 

Financials 

Q1-2025 revenue and EPS were down YoY due to a large one-time client gas project that boosted Q1-2024.

Q1 revenue declined 16% YoY, missing our estimate by 11%. Gross margins decreased 6 pp YoY to 50%, in line with our estimate, and above the historical average of 47%, and sector average of 46%

G&A expenses rose 36% YoY, and were 4% higher than our estimate. With expenses outpacing revenue, EPS fell 50% YoY to $0.04 vs our forecast of $0.06

CAPEX increased 25% YoY to $6M, driven by heightened client demand necessitating new equipment purchases. Debt/capital declined QoQ (from 28% to 7%), reflecting the repayment of significant debt with

 

Appendix