CALGARY, Alberta - Enerflex Ltd. (TSX: EFX) (NYSE: EFXT), a global provider of energy infrastructure solutions, announced today that a Mexican court has overturned a previous labor board decision from January 31, 2022, involving a severance pay dispute with a former employee. The Tenth Circuit Collegiate Court on Labor Matters in Mexico ruled in favor of Enerflex, negating the labor board's order for the company to pay approximately $125 million in severance.
The dispute dates back to 2015 and concerns subsidiaries of Exterran (NYSE:EXTN) Corporation, which are now part of Enerflex. The court found that the labor board's ruling had no credible basis in law or fact. The case has been remanded back to the labor board for a new judgment, which Enerflex believes will not materially impact its financial results.
In other company news, Enerflex is set to release its financial results for the first quarter ended March 31, 2024, on Tuesday, May 7, 2024, after the market closes. The results will be available on the company's website and through SEDAR+ and EDGAR. The company has also switched its reporting currency to U.S. dollars as of January 1, 2024, to better reflect its financial position.
Interested parties are invited to join a conference call and audio webcast hosted by senior management on Wednesday, May 8, 2024, to discuss the quarterly results. Registration for the call is required, and once registered, participants will receive dial-in numbers and a unique PIN.
This news article is based on a press release statement from Enerflex Ltd.
InvestingPro Insights
As Enerflex Ltd. navigates its recent legal victory and prepares for its Q1 2024 earnings release, investors may find it prudent to consider the company's financial health and market performance. According to InvestingPro, Enerflex has maintained dividend payments for 14 consecutive years, signaling a commitment to returning value to shareholders. This is particularly noteworthy as the company faces legal and operational challenges.
The InvestingPro data also reveals a significant 77.87% revenue growth in the last twelve months as of Q4 2023, which could be a positive indicator of the company's ability to expand its business operations effectively. However, it's essential to note that Enerflex has not been profitable over the last twelve months, with a negative P/E ratio of -8.97, reflecting challenges in generating net income relative to its share price.
Investors might also be encouraged by the large price uptick over the last six months, with a 47.85% total return, suggesting a growing confidence in the market regarding Enerflex's future prospects. For those seeking a deeper dive into Enerflex's financials and market performance, there are additional InvestingPro Tips available. By using the coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these insights.
For more tailored analysis and metrics, visit InvestingPro's Enerflex page, which includes a fair value estimate of 7.89 USD, potentially offering a benchmark for investors to assess the stock's current trading price. With 6 additional tips listed on InvestingPro, investors have a wealth of information at their fingertips to make more informed decisions.
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