ENGlobal Corporation (NASDAQ:ENG) Q3 2022 Earnings Call Transcript

Roger Westerlind: No. Hard question. The base funding is based on USDA guarantees through a bank. And I think the summaries is €“ the financing is more complicated than the operator expected, I think is a fair statement. So to give it a timeline right now, I would be very careful. In addition to that, Jeff, you know, so we have a finalized design for what we call inside battery limit for a 6,500 battery unit based on how the top of technology. So we are not waiting for like one, what do you call that in English? All eggs in one basket. What we have is another four or five opportunities where we are going to pursue, we are pursuing the same strategy as for the North Dakota plan. Those plans I’m referring to is both here in the U.S. and in Canada. So we are not waiting for anybody, first comes first out.

Jeffrey Campbell: Well, and to follow up on that, just to help your friendly modeler here, what’s kind of a timeline on any of those opportunities? And presumably it would be sometime in €“ FID would be sometime in 2023, is that fair?

Darren Spriggs: Absolutely.

Jeffrey Campbell: Okay. All right. Thank you.

Operator: Your next question for today is coming from Rob Brown at Lake Street Capital.

Darren Spriggs: Good morning, Rob.

Rob Brown: Good morning. Just follow up on some of the projects you talked about in the pipeline. It’s a pretty nice pipeline, but on the gas-to-liquid projects, could those get sort of ordered in and signed in 2023 and some of those started in 2023? Or what sort of the timeline on that particular segment of project?

Roger Westerlind: I mean, we are hope hopeful is some of these will be signed this year. So, if anybody thought we said we are waiting for somebody, we’re not. We have €“ I think, back to Mark’s comment earlier, I think we redid the strategy and we sticking to that and it starts to pay off. What comes first if what our detail is a little hard to say is a deeper discussion. Anybody have access to the World Bank reporter about flaring? I mean, that indicates a huge market, but it looks to us that the Middle East and with our porter also in the Middle East we are very hopeful that quite a few opportunities both this year and next year, if that answered your question.

Rob Brown: Yes, that was great. Thank you. And then I guess that was the other question I had is sort of what gives you the €“ or what sort of areas of confidence do you have that bookings are sort of set up nicely for the fourth quarter here? Is it really that pipeline that you talked about and sort of discussions with customers that give you confidence in that bookings kind of activity ramping here?

Darren Spriggs: Yes. I think you’re correct. It is the conversations that we’re having with customers. It’s the indications from them of the €“ and these are obviously projects that we’ve already bid. So, it’s where we stand in the bed. Their indication to us as to when these purchase orders may result from the opportunities. If I add to that, what we really have geared up is to €“ in practice called follow the money. So, we are really focusing on the operators that we truly believe with all our knowledge have the money to either award is to us or unfortunately at times to others, but we don’t want to get hanging that, that things drags on them, don’t come to them. So with the help of the CRM, and we upgraded that also this year, 32 years on the line, I would say we have a solid back, not backlog, but the solid backlog prospects, which is really real for us or for somebody else for a long time, if that makes sense.