Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Enerflex Ltd |
Entity Central Index Key | 0001904856 |
Current Fiscal Year End Date | --12-31 |
Entity Address, Address Line One | Suite 904 |
Entity Address, Address Line Two | 1331 Macleod Trail S.E. |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2G 0K3 |
Entity Incorporation, State or Country Code | Z4 |
Entity Tax Identification Number | 98-0457703 |
City Area Code | 403 |
Local Phone Number | 387-6377 |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 1263 |
Auditor Location | Calgary, Canada |
Title of 12(b) Security | Common Shares |
Trading Symbol | EFXT |
Security Exchange Name | NYSE |
Document Registration Statement | false |
Document Annual Report | true |
Entity Current Reporting Status | Yes |
Entity Primary SIC Number | 3563 |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Entity Common Stock, Shares Outstanding | 123,739,020 |
Entity File Number | 001-41531 |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Business Contact [Member] | |
Document Information [Line Items] | |
Contact Personnel Name | Enerflex Energy Systems Inc. |
Entity Address, Address Line One | 10815 Telge Road |
Entity Address, City or Town | Houston |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77095 |
City Area Code | 281 |
Local Phone Number | 345-9300 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 253,776 | $ 172,758 |
Accounts receivable | 456,578 | 212,206 |
Contract assets | 186,259 | 82,760 |
Inventories | 369,298 | 172,687 |
Work-in-progress related to finance leases | 41,986 | 36,169 |
Current portion of finance leases receivable | 60,020 | 15,248 |
Income taxes receivable | 5,460 | 3,732 |
Derivative financial instruments | 901 | 294 |
Prepayments | 71,772 | 13,853 |
Total current assets | 1,446,050 | 709,707 |
Property, plant and equipment | 152,505 | 96,414 |
Energy infrastructure assets | 1,250,338 | 610,328 |
Contract assets | 223,179 | 0 |
Lease right-of-use assets | 78,372 | 49,887 |
Finance leases receivable | 234,484 | 88,110 |
Deferred tax assets | 19,435 | 9,293 |
Other assets | 83,076 | 51,315 |
Intangible assets | 102,773 | 10,118 |
Goodwill | 679,377 | 566,270 |
Total assets | 4,269,589 | 2,191,442 |
Current liabilities | ||
Accounts payable and accrued liabilities | 627,149 | 240,747 |
Provisions | 18,826 | 6,636 |
Income taxes payable | 78,697 | 9,318 |
Deferred revenues | 366,085 | 84,614 |
Current portion of long-term debt | 27,088 | 0 |
Current portion of lease liabilities | 20,125 | 13,906 |
Derivative financial instruments | 977 | 180 |
Total current liabilities | 1,138,947 | 355,401 |
Deferred revenues | 33,435 | 0 |
Long-term debt | 1,363,237 | 331,422 |
Lease liabilities | 72,908 | 43,108 |
Deferred tax liabilities | 96,397 | 91,972 |
Other liabilities | 21,757 | 15,785 |
Total liabilities | 2,726,681 | 837,688 |
Shareholders' equity | ||
Share capital | 589,827 | 375,524 |
Contributed surplus | 660,072 | 658,615 |
Retained earnings | 164,200 | 274,962 |
Accumulated other comprehensive income | 128,809 | 44,653 |
Total shareholders' equity | 1,542,908 | 1,353,754 |
Total liabilities and shareholders' equity | $ 4,269,589 | $ 2,191,442 |
Consolidated Statements of Earn
Consolidated Statements of Earnings $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2021 CAD ($) $ / shares shares | |
Profit or loss [abstract] | ||
Revenue | $ 1,777,798 | $ 960,156 |
Cost of goods sold | 1,455,082 | 757,934 |
Gross margin | 322,716 | 202,222 |
Selling and administrative expenses | 320,444 | 147,931 |
Operating income | 2,272 | 54,291 |
Gain on disposal of property, plant and equipment | 199 | 135 |
Equity earnings from associates and joint ventures | 4,719 | 671 |
Impairment of goodwill | (48,000) | 0 |
Earnings (loss) before finance costs and income taxes | (40,810) | 55,097 |
Net finance costs | 38,923 | 16,995 |
Earnings (loss) before income taxes | (79,733) | 38,102 |
Income taxes | 21,210 | 56,557 |
Net loss | $ (100,943) | $ (18,455) |
Loss per share – basic | (per share) | $ (1.04) | $ (0.21) |
Loss per share – diluted | (per share) | $ (1.04) | $ (0.21) |
Weighted average number of shares – basic | shares | 97,045,917 | 89,678,845 |
Weighted average number of shares – diluted | shares | 97,045,917 | 89,678,845 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of comprehensive income [abstract] | ||
Net loss | $ (100,943) | $ (18,455) |
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods: | ||
Change in fair value of derivatives designated as cash flow hedges, net of income tax recovery | 360 | 247 |
Loss on derivatives designated as cash flow hedges transferred to net loss, net of income tax expense | (389) | (167) |
Unrealized gain on translation of foreign-denominated debt | 11,779 | 232 |
Unrealized gain (loss) on translation of financial statements of foreign operations | 72,406 | (18,958) |
Other comprehensive income (loss) | 84,156 | (18,646) |
Total comprehensive loss | $ (16,787) | $ (37,101) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | ||
Net loss | $ (100,943) | $ (18,455) |
Items not requiring cash and cash equivalents: | ||
Depreciation and amortization | 128,287 | 87,622 |
Equity earnings from associates and joint ventures | (4,719) | (671) |
Deferred income taxes (Note 21) | 3,265 | 43,422 |
Share-based compensation expense (Note 25) | 16,162 | 12,937 |
Gain on disposal of property, plant and equipment (Note 10) | (199) | (135) |
Impairment on property, plant and equipment and energy infrastructure assets (Note 10) | 1,233 | 537 |
Impairment of goodwill (Note 15) | 48,000 | |
Adjustments to reconcile profit (loss) other than changes in working capital | 91,086 | 125,257 |
Net change in working capital and other (Note 31) | (71,318) | 82,937 |
Cash provided by operating activities | 19,768 | 208,194 |
Investing Activities | ||
Net cash acquired from Acquisition (Note 7) | 133,218 | |
Additions to: | ||
Property, plant and equipment (Note 10) | (8,043) | (5,154) |
Energy infrastructure assets (Note 10) | (107,797) | (52,187) |
Proceeds on disposal of: | ||
Property, plant and equipment (Note 10) | 416 | 220 |
Energy infrastructure assets (Note 10) | 15,907 | 4,670 |
Investment in associates and joint ventures | (5,950) | (130) |
Dividends received from associates and joint ventures | 3,094 | |
Net change in accounts payable related to the addition of property, plant and equipment, and energy infrastructure assets | 12,403 | 3,720 |
Cash provided by (used in) investing activities | 43,248 | (48,861) |
Financing Activities | ||
Net proceeds from the Revolving Credit Facility (Note 19) | 464,624 | |
Issuance of the Notes (Note 19) | 797,629 | |
Issuance of the Term Loan (Note 19) | 207,062 | |
Repayment of assumed debt on Acquisition (Note 7) | (1,022,112) | |
Repayment of the Notes (Note 19) | (285,722) | (40,000) |
Repayment of the Bank Facility (Note 19) | (31,213) | (53,891) |
Net proceeds from (repayment of) the Asset-Based Facility (Note 19) | (39,295) | 36,916 |
Dividends | (8,969) | (7,171) |
Lease liability principal repayment (Note 20) | (15,758) | (14,215) |
Stock option exercises (Note 22) | 260 | |
Deferred transaction costs | (54,652) | (2,095) |
Cash provided by (used in) financing activities | 11,854 | (80,456) |
Effect of exchange rate changes on cash and cash equivalents denominated in foreign currencies | 6,148 | (1,795) |
Increase in cash and cash equivalents | 81,018 | 77,082 |
Cash and cash equivalents, beginning of period | 172,758 | 95,676 |
Cash and cash equivalents, end of period | $ 253,776 | $ 172,758 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Thousands | Total | Share capital [Member] | Contributed surplus [Member] | Retained earnings [member] | Foreign currency translation adjustments [Member] | Hedging reserve [Member] | Accumulated other comprehensive income [member] |
Beginning Balance at Dec. 31, 2020 | $ 1,396,695 | $ 375,524 | $ 656,832 | $ 301,040 | $ 63,270 | $ 29 | $ 63,299 |
Net loss | (18,455) | (18,455) | |||||
Other comprehensive income (loss) | (18,646) | (18,726) | 80 | (18,646) | |||
Effect of stock option plans | 1,783 | 1,783 | |||||
Dividends | (7,623) | (7,623) | |||||
Ending Balance at Dec. 31, 2021 | 1,353,754 | 375,524 | 658,615 | 274,962 | 44,544 | 109 | 44,653 |
Net loss | (100,943) | (100,943) | |||||
Other comprehensive income (loss) | 84,156 | 84,185 | (29) | 84,156 | |||
Common shares issued (Note 7 and 22) | 213,942 | 213,942 | |||||
Effect of stock option plans | 1,818 | 361 | 1,457 | ||||
Dividends | (9,819) | (9,819) | |||||
Ending Balance at Dec. 31, 2022 | $ 1,542,908 | $ 589,827 | $ 660,072 | $ 164,200 | $ 128,729 | $ 80 | $ 128,809 |
Nature And Description Of The C
Nature And Description Of The Company | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Nature and description of the company | NOTE 1. NATURE AND DESCRIPTION OF THE COMPANY Enerflex Ltd. (“Enerflex” or “the Company”) delivers energy infrastructure and energy transition solutions to natural gas markets. The Company’s vertically integrated suite of product offerings includes processing, cryogenic, compression, electric power, and produced water solutions, spanning all phases of a project’s lifecycle, from front-end low-carbon Headquartered in Calgary, Alberta, Canada, Enerflex’s registered office is located at 904, 1331 Macleod Trail SE, Calgary, Alberta, Canada. Enerflex has approximately 5,000 employees worldwide. Enerflex, its subsidiaries, interests in associates and joint operations, operate in almost 100 locations in: Canada, the United States of America (“USA”), Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Peru, the United Kingdom, the Netherlands, United Arab Emirates (“UAE”), Bahrain, Oman, Egypt, Kuwait, India, Iraq, Nigeria, Pakistan, Saudi Arabia, Australia, China, Indonesia, Malaysia, Singapore, and Thailand. Enerflex operates four business segments and reports in three business segments: Canada and USA, which combine into the North America (“NAM”) reporting segment, Latin America (“LATAM”) which includes our operations in Mexico and South America, and Eastern Hemisphere (“EH”) which includes the Company’s international operations from Europe, Africa, the Middle East, Australia and Asia. The following table represents material subsidiaries of the Company as at December 31, 2022: Name Jurisdiction of Incorporation Ownership Operating Segment Enerflex Ltd. Canada Public Shareholders North America Enerflex International Holdings Ltd. Barbados 100.0 percent Eastern Hemisphere Enerflex Energy Systems Inc. Delaware, USA 100.0 percent North America Enerflex US Holdings Inc. 1 Delaware, USA 100.0 percent North America Exterran Energy Solutions, LP Delaware, USA 100.0 percent North America Enerflex Energy Systems (Australia) PTY Ltd. Australia 100.0 percent Eastern Hemisphere Enerflex Middle East LLC Oman 70.0 percent 2 Eastern Hemisphere Enerflex Middle East WLL 3 Bahrain 100.0 percent Eastern Hemisphere Enerflex Holding Company NL B.V. Netherlands 100.0 percent Eastern Hemisphere Exterran Middle East LLC Oman 100.0 percent Eastern Hemisphere 1 2 3 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Basis Of Presentation | NOTE 2. BASIS OF PRESENTATION (a) Statement of Compliance These consolidated financial statements (“Financial Statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and were approved and authorized for issue by the Board of Directors (the “Board”) on March 1, 2023. Certain prior year amounts have been reclassified to conform with the current period’s presentation. (b) Basis of Measurement The Financial Statements are prepared on a historical cost basis except as detailed in the accounting policies disclosed in Note 3. The accounting policies described in Note 3 and Note 4 have been applied consistently to all periods presented in these Financial Statements. Standards and guidelines issued but not yet effective for the current accounting period are described in Note 6. (c) Functional Currency and Presentation Currency These Financial Statements are presented in Canadian dollars, which is the Company’s presentation currency. Transactions of the Company’s individual entities are recorded in their own functional currency based on the primary economic environment in which it operates. (d) Use of Estimates and Judgment The timely preparation of these Financial Statements requires that Management make estimates and assumptions and use judgment. Accordingly, actual results may differ from estimated amounts as future confirming events occur. Significant estimates and judgment used in the preparation of the Financial Statements are described in Note 5. (e) Basis of Consolidation These Financial Statements include the accounts of the Company and its subsidiaries. Subsidiaries are fully consolidated from the date of acquisition and continue to be consolidated until the date that control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies. All intra-group balances, income and expenses, and unrealized gains and losses resulting from intra-group transactions are eliminated in full. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Significant Accounting Policies | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Investments in Associates and Joint Ventures Investments in associates and joint ventures are accounted for under the equity method. Under this method, the investment is carried on the consolidated statements of financial position at cost plus post-acquisition changes in the Company’s share of net assets of the associate or joint venture. The significant associates and joint ventures held by the Company are as follows: • 45 percent interest in Roska DBO Inc. (“Roska DBO”). • 65 percent interest in a joint venture in Brazil. The consolidated statements of earnings reflect the Company’s share of the results of operations of associates and joint ventures. Unrealized gains and losses resulting from transactions between the Company and associates are eliminated to the extent of the interest in the associate or joint venture. The Company’s share of profits from associates and joint ventures is shown on the face of the consolidated statements of earnings. This is the profit attributable to equity holders of the associates and joint venture partners and, therefore, is profit after tax and non-controlling (b) Foreign Currency Translation In the accounts of individual subsidiaries, transactions in currencies other than the individual subsidiaries’ functional currency are recorded at the prevailing rate of exchange at the date of the transaction. At year-end, Non-monetary Non-monetary The assets and liabilities on the statements of financial position of foreign subsidiaries are translated into Canadian dollars at the rates of exchange prevailing at the reporting date. The statements of earnings of foreign subsidiaries are translated at average exchange rates for the reporting period. Exchange differences arising on the translation of net assets are taken to accumulated other comprehensive income. All foreign exchange gains and losses are taken to the consolidated statements of earnings with the exception of exchange differences arising on monetary assets and liabilities that form part of the Company’s net investment in subsidiaries. These are taken directly to other comprehensive income until the disposal of the foreign subsidiary at which time the unrealized gain or loss is recognized in the consolidated statements of earnings. On the disposal of a foreign subsidiary, accumulated exchange differences are recognized in the consolidated statements of earnings as a component of the gain or loss on disposal. (c) Business Combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value on the date of the acquisition. Acquisition costs incurred are expensed and included in selling and administrative expenses, except for those associated with the issuance of debt, which are included in the initial carrying amount of the liability. Results of operations of businesses acquired are included in the Company’s consolidated financial statements from the date of acquisition. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. (d) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Cost comprises the purchase price or construction cost and any costs directly attributable to making the asset capable of operating as intended. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of assets and commences when the assets are ready for intended use. Asset Class Estimated Useful Life Range Buildings 5 to 20 years Equipment 2 to 20 years Major renewals and improvements are capitalized when they are expected to provide future economic benefit. When significant components of property, plant and equipment are required to be replaced at intervals, the Company derecognizes the replaced part, and recognizes the new part with its own associated useful life and depreciation. No depreciation is charged on land or assets under construction. Repairs and maintenance costs are charged to operations as incurred. T he carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from derecognition of property, plant and equipment is included in the consolidated statements of earnings when the item is derecognized. Each asset’s estimated useful life, residual value, and method of depreciation ar (e) Energy Infrastructure Assets Energy infrastructure assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are generally between five When the Company is responsible for major maintenance and overhauls, the actual overhaul cost is capitalized and depreciated over the estimated useful life of the overhaul, generally between two Each asset’s estimated useful life, residual value, and method of depreciation are reviewed and adjusted, if appropriate, at each year-end, (f) Goodwill Goodwill arising on an acquisition of a business is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill allocated to a group of cash-generating units (“CGUs”) is reviewed for impairment annually, or when there is an indication that a r (g) Intangible Assets Intangible assets are carried at cost less accumulated amortization and any accumulated impairment losses. Intangible assets with a finite life are amortized on a straight-line basis over Management’s best estimate of their expected useful lives. The amortization charge is included in selling and administrative expenses in the consolidated statements of earnings. The expected useful lives and amortization method are reviewed on an annual basis with any change in the useful life or pattern of consumption adjusted at year end. Intangible assets are tested for impairment whenever there is an indication that the asset may be impaired. Acquired identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Customer relationships, software, and other intangible assets have an estimated useful life range of three (h) Impairment of Non-Financial At least annually, the Company reviews the carrying amounts of its tangible and intangible assets with finite lives to assess whether there is an indication that those assets may be impaired. If any such indication exists, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value-in-use. value-in-use, pre-tax If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. A corresponding impairment loss is recognized in the consolidated statements of earnings. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the original carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Any impairment reversal is recognized in the consolidated statements of earnings. (i) Inventories Inventories are valued at the lower of cost and net realizable value. Serialized inventory is determined on a first-in, first-out Non-serialized Cost of equipment, repair and distribution parts, and direct materials, include purchase costs and costs incurred in bringing each product to its present location and condition. Cost of work-in-progress work-in-progress Cost of inventories includes the transfer from accumulated other comprehensive income of gains and losses on qualifying cash flow hedges in respect of the purchase of inventory. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. Inventories are written down to net realizable value when the cost of inventories is estimated to be unrecoverable due to obsolescence, damage, or declining selling prices. Inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. When circumstances that previously caused inventories to be written down no longer exist or when there is clear evidence of an increase in selling prices, the amount of the write-down previously recorded is reversed. (j) Trade Receivables Trade receivables are recognized and carried at original invoice amount less an allowance for any amounts estimated to be uncollectible. The Company calculates an expected credit loss based on historical experience of bad debts and specific provisions created when there is objective evidence that the collection of the full amount of a receivable is no longer probable under the terms of the original invoice. The amount of this allowance represents Management’s best estimate of expected credit losses. Trade receivables are derecognized when they are assessed as uncollectible. (k) Cash Cash includes cash and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. (l) Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. (m) Onerous Contracts A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognizes any impairment loss on the assets associated with that contract. (n) Employee Future Benefits The Company sponsors various defined contribution pension plans, which cover substantially all employees and are funded in accordance with applicable plan and regulatory requirements. Regular contributions are made by the Company to the employees’ individual accounts, which are administered by a plan trustee, in accordance with the plan document. The actual cost of providing benefits through defined contribution pension and the 401(k) matched savings plans is charged to earnings in the period in respect of which contributions become payable. (o) Share-Based Payments Equity-Settled Share-Based Payments The Company offers a Stock Option Plan to key employees, measured at the fair value of the equity instrument at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 25. The fair value of equity-settled share-based payments is expensed over a five-year vesting period with a corresponding increase in equity. Stock options have a seven-year expiry and are exercisable at the designated common share price, which is determined by the average of the market price of the Company’s shares on the five days preceding the date of the grant. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. Cash-Settled Share-Based Payments The Company offers Deferred Share Unit (“DSU”), Performance Share Unit (“PSU”), Restricted Share Unit (“RSU”), and Cash Performance Target (“CPT”) plans to certain employees. The Company also offers the DSU plan to non-employee ing The Company also offers a Phantom Share Entitlement (“PSE”) plan to certain employees of affiliates located in Australia and the UAE. PSEs are measured at the fair value of the equity instrument at the grant date and expensed over a five-year vesting period and expire on the seventh anniversary. The exercise price of each PSE equals the average of the market price of the Company’s shares on the five days preceding the date of the grant. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with changes in fair value recognized in the consolidated statements of earnings. The award entitlements for increases in the share trading value of the Company are to be paid to the recipient in cash upon exercise. (p) Leases Company as a Lessee A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • The contract involves the use of an identified asset, either explicitly or implicitly, and whether the supplier has a substantive substitution right for the asset; • The Company has the right to obtain substantially all the economic benefits from the use of the asset throughout the period; and • The Company has the right to direct the use of the identified asset. The Company determines if a contractual arrangement is a lease at the inception of the contract term. The Company has identified leases for the following asset types: land and buildings (including manufacturing facilities, office space, and rental accommodations) and equipment (including vehicles, office equipment, and shop equipment). The Company recognizes a right-of-use The right-of-use right-of-use The lease liability is initially measured at the present value of remaining lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability include fixed payments, variable lease payments that depend on an index or rate, amounts expected to be payable under a residual value guarantee, and amounts owing under purchase or termination options, if the Company is reasonably certain to exercise these options. If the lease contains an extension option that the Company is reasonably certain to exercise, all payments in the renewal period are also included in determining the lease liability. The lease liability is measured at amortized cost using the effective interest method. The amount of the liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the right-of-use right-of-use The Company has elected not to recognize right-of-use low-value non-lease right-of-use Company as a Lessor Leases in which the Company is the lessor are assessed upon commencement and are classified as either an operating lease or a finance lease. An operating lease does not transfer substantially all the risks and rewards of the leased asset to the customer. Lease payments from operating leases are recorded as income on a straight-line basis over the life of the lease. A finance lease exists when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. Amounts due from lessees under finance leases are recorded as finance lease receivables. Finance leases are initially recognized at amounts equal to the net investment in the lease, determined to be the fair value of the underlying asset, or, if lower, the present value of the lease payments discounted using a market rate of interest. Payments that are part of the leasing arrangement are divided between a reduction in the finance lease receivable and finance lease income. Finance lease income is recognized to produce a constant rate of return on the Company’s investment in the lease and is included in revenues. (q) Revenue Recognition Revenue is recognized as the Company satisfies its performance obligations by transferring promised goods or services to customers, regardless of when payment is received. Revenue is measured at the amount of consideration to which the Company expects to be entitled, in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, and may include fixed amounts, variable amounts, or both. Variable amounts are recorded using either the “expected value approach” or the “most likely outcome approach,” as determined upon initial recognition of the contract, and are reassessed at each reporting period. The expected value approach measures variable consideration by probability weighting all the potential outcomes. The most likely outcome approach measures variable consideration as Management’s best estimate of the variable component. In estimating variable consideration, the Company reviews any potential for returns, refunds, and other similar obligations. For contracts containing multiple performance obligations, the amount of consideration to which the Company expects to be entitled is allocated to individual performance obligations proportionately based on the stand-alone selling price. Energy Infrastructure Revenue from energy infrastructure assets is recognized in accordance with the terms of the relevant agreement with the customer on a straight-line basis over the term of the agreement. Payments are typically required on a monthly basis with no unusual payment terms. Certain rental contracts contain an option for the customer to purchase the assets at the end of the rental period. Should the customer exercise this option to purchase, revenue from the sale of the equipment is recognized directly in the consolidated statements of earnings. Revenue from contracts that have been classified as finance leases relating to existing or pre-owned a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised; c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred; d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications. At the commencement of these finance leases, the Company recognizes revenue and a finance lease receivable equal to the net investment in the lease. Finance income is recognized in Energy Infrastructure revenue reflecting a constant periodic rate of return on the Company’s net investment in the lease over the lease term. After-Market Services After-Market Services revenues include the sales of parts and equipment, as well as the servicing and maintenance of equipment. For the sale of parts and equipment, revenue is recognized when the transfer of control passes, which is typically at the point of shipping. For servicing and maintenance of equipment, revenue is recognized on a straight-line basis based on performance of the contracted-upon service. Revenue from long-term service contracts is recognized on a stage of completion basis proportionate to the service work that has been performed based on parts and labour service provided. Payments are typically required on a monthly basis or as work is performed, with no unusual payment terms. At the completion of the contract, any remaining profit on the contract is recognized as revenue. Any expected losses on such projects are charged to operations when determined. Long-term service contracts include scheduled milestone maintenance, corrective or crash maintenance, the supply of parts, and the operation of equipment. Engineered Systems Revenue from the supply of equipment systems – contracts typically involving engineering, design, manufacture, installation, and start-up percentage-of-completion For Engineered Systems contracts, the Company generally requires customers to pay based on milestones as manufacturing progresses. These milestones are generally structured to keep the Company cash flow-positive. Contracts are also generally structured to ensure the Company is made whole for costs incurred in the event of a cancellation. Revenue from contracts that have been classified as finance leases for newly manufactured equipment are recorded as Engineered Systems revenue. At the inception of a contract, all leases are classified as either an operating or finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Whether a lease is an operating or finance lease depends on the substance of the transaction rather than the form of the contract. Examples of situations, which typically would lead to a lease being classified as a finance lease include, but are not limited to: a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised; c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred; d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications. Upon commencement of a new finance lease, the Company recognizes revenue, based on the fair value of the underlying assets, and cost of goods sold, determined to be the net book value of those assets, in the consolidated statements of earnings. The finance lease interest portion will be recognized in the Energy Infrastructure product line over the lease term. Engineered Systems projects are typically completed within a year; however, this timing can be impacted by both internal and external factors such as shop loading and customer delivery requests. Practical Expedients The Company has elected to use the practical expedients in IFRS 15 Revenue from contracts with customers (r) Financial Instruments Financial instruments are measured at fair value on initial recognition of the instrument, plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. For the purposes of measuring financial assets after initial recognition, the Company classifies financial assets as either amortized cost, fair value through other comprehensive income (“FVOCI”), or fair value through profit or loss (“FVTPL”), based on the contractual cash flow characteristics and the Company’s business model for managing the financial asset. For the purposes of measuring financial liabilities after initial recognition, the Company classifies all financial liabilities as amortized cost, except certain financial liabilities, such as derivatives, which are classified as FVTPL. Preferred shares included in Other assets were recorded at fair value at inception and are subsequently measured at amortized cost. The Company primarily applies the market approach for recurring fair value measurements. Three levels of inputs may be used to measure fair value: • Level 1: Fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an on-going • Level 2: Fair value measurements are those derived from inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: Fair value measurements are those derived from inputs for the asset or liability that are not based on observable market data (unobservable inputs). In these instances, internally developed methodologies are used to determine fair value. The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect placement within. The Company has made the following classifications: • Cash and cash equivalents are measured at fair value through profit or loss. Gains and losses resulting from the periodic revaluation are recorded in the consolidated statements of earnings; • Accounts receivable and preferred shares are recorded at amortized cost using the effective interest rate method; and • Accounts payable, accrued liabilities, and long-term debt are recorded at amortized cost using the effective interest rate method. Transaction costs are expensed as incurred for financial instruments classified or designated as FVTPL. Transaction costs related to other financial liabilities are added to the value of the instrument at acquisition and taken into the consolidated statements of earnings using the effective interest rate method. (s) Derivative Financial Instruments and Hedge Accounting The Company formally documents its risk management objectives and strategies to manage exposures to fluctuations in foreign currency exchange rates and interest rates. The risk management policy permits the use of certain derivative financial instruments, including forward foreign exchange contracts and interest rate swaps, to manage these fluctuations. The Company does not enter into derivative financial agreements for speculative purposes. Derivative financial instruments are measured at their fair value upon initial recognition and are remeasured to their fair value at the end of each reporting period. The fair value of quoted derivatives is equal to their positive or negative market value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. The Company elected to apply hedge accounting for foreign exchange forward contracts for anticipated transactions. These are designated as cash flow hedges. For cash flow hedges, fair value changes of the effective portion of the hedging instrument are recognized in accumulated other comprehensive income, net of taxes. The ineffective portion of the fair value changes is recognized in the consolidated statements of earnings. Amounts charged to accumulated other comprehensive income are reclassified to the consolidated statements of earnings when the hedged transaction affects the consolidated statements of earnings. The Company’s U.S. dollar-denominated long-term debt has been designated as a hedge of net investment in self-sustaining foreign operations. As a result, a portion of unrealized foreign exchange gains and losses on the U.S. dollar-denominated long-term debt are included in the cumulative translation account in other comprehensive income. On an ongoing basis, an assessment is made as to whether the designated derivative financial instruments continue to be effective in offsetting changes in cash flows of the hedged transactions. (t) Income Taxes Income tax expense represents the sum of current income tax and deferred tax. Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Taxable earnings differ from earnings as reported in the consolidated statements of earnings as it excludes temporary and permanent differences. The Company’s current tax assets and liabilities are calculated by using tax rates that have been enacted or substantively enacted at the reporting date. Deferred income tax is recognized on all temporary differences at the reporting date based on the difference between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, with the following exceptions: • Where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss; • In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future; and • Deferred income tax assets are recognized only to the extent that it is probable that a taxable profit will be available against which the deductible temporary differences, carried forward tax credits, or tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized. Unrecognized deferred income tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the asset is realized or the liability is settled, based on tax rates and tax laws enacted or substantively enacted at the reporting date. Current and deferred income taxes are charged or credited directly to equity if it relates to items that are credited or charged to equity in the same period. Otherwise, income tax is recognized in the consolidated statements of earnings. In accordance with IAS 12 Income taxes non-monetary (u) Earnings Per Share Basic earnings per share is calculated by dividing the net earnings for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting the weighted average number of common shares outstanding for dilutive common shares related to the Company’s equity-settled share-based compensation plan. (v) Finance Income and Costs Finance income comprises interest income on funds invested. Finance income is recognized as it accrues in profit or loss, using the effective interest rate method. Finance costs comprise interest expense on borrowings, amortization of the Senior Note discount using the effective interest rate method, and interest incurred on lease liabilities. (w) Government Grants Government grants are recorded as a reduction in cost of goods sold and selling and administrative expense within the consolidated statements of earnings in accordance with where the associated expense was recognized. Government grants are recognized when there is reasonable assurance that the grant will be received, and all related conditions are complied with. |
Changes In Accounting Policies
Changes In Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Changes In Accounting Policies | NOTE 4. CHANGES IN ACCOUNTING POLICIES The Company has reviewed amendments to existing accounting standards and determined that no amendments would have a material impact on the financial statements. |
Significant Accounting Estimate
Significant Accounting Estimates and Judgment | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Disclosure of accounting judgements and estimates [text block] | NOTE 5. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENT The timely preparation of these Financial Statements requires that Management make estimates and assumptions and use judgment. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, uncertainties about the current economic environment including significant market volatility in commodity prices, high inflation, high interest rates, and increasing energy prices. Uncertainty about these assumptions and estimates could however result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. In the process of applying the Company’s accounting policies, Management has made the following judgments, estimates and assumptions which have a significant effect on the amounts recognized in the consolidated financial statements: Revenue Recognition – Performance Obligation Satisfied Over Time The Company reflects revenues relating to performance obligations satisfied over time using the percentage-of-completion percentage-of-completion percentage-of-completion Certain contracts also include aspects of variable consideration, such as liquidated damages on project delays. For these contracts, Management must make estimations as to the likelihood of the variable consideration being recognized or constrained, based on the status of each project, the potential value of variable consideration, communication received from the customer, and other factors. Enerflex continues to monitor these factors. Changes in estimated cost or revenue associated with a project, including variable consideration, could result in material changes to revenue and gross margin recognized on certain projects. Revenue Recognition – Performance Obligation Satisfied at a Point in Time The Company reflects revenues relating to performance obligations satisfied at a point in time when control – indicated by transfer of the legal title, physical possession, significant risks and rewards of ownership, or any combination of these indicators – is transferred to the customer. Provisions for Warranty Provisions set aside for warranty exposures either relate to amounts provided systematically based on historical experience under contractual warranty obligations or specific provisions created in respect of individual customer issues undergoing commercial resolution and negotiation. Amounts set aside represent Management’s best estimate of the likely settlement and the timing of any resolution with the relevant customer. Business Acquisitions In a business acquisition, the Company may acquire assets and assume certain liabilities of an acquired entity. Estimates are made as to the fair value of property, plant and equipment, intangible assets, and goodwill, among other items. In certain circumstances, such as the valuation of property, plant and equipment and intangible assets acquired, the Company relies on independent third-party valuators. The determination of these fair values involves a variety of assumptions, including revenue growth rates, projected cash flows, customer attrition rates, operating margins, discount rates, and economic lives. Property, Plant and Equipment, Energy Infrastructure Assets and Intangible Assets Property, plant and equipment, energy infrastructure assets and intangible assets are stated at cost less accumulated depreciation and accumulated amortization and any impairment losses. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives of property, plant and equipment, energy infrastructure assets and intangible assets is reviewed on an annual basis. Assessing the reasonableness of the estimated useful lives of property, plant and equipment, energy infrastructure assets and intangible assets requires judgment and is based on currently available information. Property, plant and equipment, energy infrastructure assets and intangible assets are also reviewed for potential impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Changes in circumstances, such as technological advances and changes to business strategy can result in actual useful lives differing significantly from estimates. The assumptions used, including rates and methodologies, are reviewed on an ongoing basis to ensure they continue to be appropriate. Revisions to the estimated useful lives of property, plant and equipment, energy infrastructure assets and intangible assets constitutes a change in accounting estimate and are applied prospectively. Right-of-Use The Company determines the right-of-use right-of-use Finance Lease Receivables In calculating the value of the Company’s finance lease receivables, the Company is required to determine the fair value of the underlying assets included in the finance lease transaction, or, if lower, the present value of the lease payments discounted using a market rate of interest. The fair value of the underlying assets should reflect the amount that the Company would otherwise recognize on a sale of those assets. Allowance for Doubtful Accounts Amounts included in allowance for doubtful accounts reflect the full lifetime expected credit losses for trade receivables. The Company determines allowances based on Management’s best estimate of future expected credit losses, considering historical default rates, current economic conditions, and forecasts of future economic conditions. Future economic conditions, especially around the oil and gas industry, may have a significant impact on the collectability of trade receivables from customers and the corresponding expected credit losses. Management has implemented additional monitoring processes in assessing the creditworthiness of customers and believes the current provision appropriately reflects the best estimate of its future expected credit losses. Significant or unanticipated changes in economic conditions could impact the magnitude of future expected credit losses. Impairment of Inventories The Company regularly reviews the nature and quantities of inventory on hand and evaluates the net realizable value of items based on historical usage patterns, known changes to equipment or processes, and customer demand for specific products. Significant or unanticipated changes in business conditions could impact the magnitude and timing of impairment recognized. Impairment of Non-Financial Impairment exists when the carrying value of an asset or group of assets exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value-in-use. value-in-use Impairment of Goodwill The Company tests goodwill for impairment at least on an annual basis, or when there is any indication that goodwill may be impaired. This requires an estimation of the value-in-use value-in-use Income Taxes Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income. The Company establishes provisions for uncertain tax positions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company’s domicile. The Company reviews the adequacy of these provisions at the end of each reporting period and adjusts them as required. However, it is possible that, at some future date, current income tax liabilities are in excess of the Company’s current income tax provision as a result of these audits, adjustments, or litigation with tax authorities. These differences could materially impact the Company’s assets, liabilities, and net income. Deferred tax assets are recognized for all unused tax losses, carried forward tax credits, or other deductible temporary differences to the extent that it is probable that taxable profit will be available against which these deferred tax assets can be utilized. Significant judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the timing of reversal, expiry of losses and the level of future taxable profits together with future tax planning strategies. The basis for this estimate is Management’s cash flow projections. To the extent the Company determines the recoverability of deferred tax assets is unlikely, the deferred tax asset is not recognized. Management regularly assesses the unrecognized deferred tax asset to determine what portion can be recognized in response to changing economic conditions or recent events. Share-Based Compensation The Company employs the fair value method of accounting for stock options and phantom share entitlement. The determination of the share-based compensation expense for stock options and phantom share entitlement requires the use of estimates and assumptions based on exercise prices, market conditions, vesting criteria, length of employment, and past experiences of the Company. Changes in these estimates and future events could alter the determination of the provision for such compensation. Details concerning the assumptions used are described in Note 25. Government Grants Government grants are recognized when there is reasonable assurance that the grant will be received, and all conditions associated with the grant are met. If a grant is received, but reasonable assurance and compliance with conditions is not achieved, the grant is recognized as a deferred liability until the conditions are fulfilled. As long as the Company is eligible for any such programs the grants received are recorded as a reduction against the associated expenses to which they relate and in the period the expenses are recognized. Segment Change and Fair Value Allocation During the fourth quarter of 2022, the Company reassessed its operating and reporting segments. Prior to this assessment, the Company’s operating and reporting segments were one and the same, with those segments being Canada, USA, and Rest of World. With the completion of the Exterran acquisition Management noted a change in how the Chief Operating Decision Maker (“CODM”) views the organization. On this basis, four operating segments have been identified with no change in the Canada and USA segments, while Rest of World has been bifurcated into LATAM and EH. For external reporting purposes, Enerflex’s reportable segments are as follows: • North America – comprised of operations in Canada and the USA; • Latin America – comprised of operations in Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico and Peru; and • Eastern Hemisphere – comprised of operations in the Middle East, Africa, Europe and Asia Pacific. The Canada and USA segments have been combined as they have similar economic characteristics including: • the nature of the products and services provided; • the nature of the production processes; • the type or class of customer for their products and services; • the methods used to distribute their products or provide their services; and • the nature of the regulatory environment. Goodwill that was previously allocated to the ROW segment was distributed between the LATAM and EH segments on a basis of the estimated fair value allocation. |
New Policies, Standards, Interp
New Policies, Standards, Interpretations, And Amendments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
New Policies, Standards, Interpretations, And Amendents | NOTE 6. NEW The Company has reviewed new and revised accounting pronouncements that have been issued but are not yet effective. The Company determined that the following amendments may have an impact on future financial statements: IAS 1 Presentation of Financial Statements (“IAS 1”) In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements, in which it provides guidance and examples to help a company apply materiality judgements to accounting policy disclosures. The amendments seek to help a company provide more useful accounting policy disclosures by replacing the requirement for a company to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies, as well as add guidance on how a business applies the concept of materiality in making decisions about accounting policy disclosures. The company will now have to consider both the size of the transactions, other events or conditions, and the nature of them. ‘Material’ is a defined term in IFRS and is more widely understood by users of financial statements. In October 2022, the IASB issued amendments to clarify that the classification of liabilities as current or non-current is based solely on a company’s right to defer settlement for at least twelve months at the reporting date. The Right needs to exist at the reporting date and must have substance. In addition to the amendment from January 2020 where the IASB issued amendments to IAS 1, to provide a more general approach to the presentation of liabilities as current or non-current, only covenants with which a company must comply on or before the reporting date may affect this right. Covenants to be complied with after the reporting date do not affect the classification of a liability as current or non-current at the reporting date. These amendments are effective January 1, 2024 and are to be applied retrospectively. Management has not yet determined the impact this amendment will have on the Company. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (“IAS 8”) Effective January 1, 2023, the definition of accounting estimates will be amended under IAS 8. Under the amended definition, a change in an input or a change in a measurement technique are changes in accounting estimates if they do not result from the correction of prior period errors. The amendment further clarifies that accounting estimates are monetary amounts in the financial statements subject to measurement uncertainty. Under the prior definition, IAS 8 stated that a change in accounting estimates specified that changes in accounting estimates may result from new information or new developments. Therefore, such changes are not corrections of errors. This amendment will impact changes in accounting policies and changes in accounting estimates made after the amendment is adopted by the Company. IAS 12 Income Taxes (“IAS 12”) In May 2021, the IASB issued amendments to IAS 12, which narrow the scope of the initial recognition exception under IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences. The amendment is effective January 1, 2023, and clarifies how a business should account for deferred tax related to assets and liabilities arising from a single transaction. Under the amendments, the initial recognition exception does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. It only applies if the recognition of a related asset and liability give rise to taxable and deductible temporary differences that are not equal. Management believes these amendments will have no impact on th e Comp |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Business combinations [Abstract] | |
Acquisition | NOTE 7. ACQUISITION (a) Summary of the Acquisition On October 13, 2022, the Company completed the acquisition (the “Transaction”) of Exterran Corporation (“Exterran”). Pursuant to the agreement and plan of merger among Enerflex, Enerflex US Holdings Inc., a wholly-owned subsidiary of Enerflex, and Exterran, Enerflex acquired all issued and outstanding Exterran common stock in exchange for 1.021 Enerflex common shares for each whole common stock of Exterran. Enerflex’s common shares continue to trade on the Toronto Stock Exchange (“TSX”) under the symbol “EFX,” and the Company commenced trading on the New York Stock Exchange (“NYSE”) under the symbol “EFXT” on October 13, 2022. The Company remains headquartered in Calgary, Alberta, Canada. The Transaction established an integrated global provider of energy infrastructure and energy transition solutions by combining Enerflex and Exterran’s highly complementary product lines, geographies, and asset bases, enhancing the Company’s scale and utilization and providing operational efficiencies for Enerflex’s customers. The Transaction was accounted for using the acquisition method pursuant to IFRS 3 “Business Combinations”. Under the acquisition method, assets and liabilities are measured at their estimated fair value on the date of acquisition, with the exception of income taxes. The total consideration was allocated to the tangible and intangible assets acquired and liabilities assumed, with any excess recorded as goodwill on the consolidated statements of financial position. (b) Preliminary Purchase Price Allocation and Capital Structure The total purchase consideration was approximately $ 222.6 million. Enerflex issued 34,013,055 common shares with a fair value of $213.9 million, based on the October 12, 2022, closing share price of $6.29, as reported on the TSX. The Company also provided $8.6 million on the fair value of vested stock-based compensation, including cash payments totaling $ 1.9 million to Exterran stockholders with fractional shares. The preliminary purchase price allocation is based on Management’s best estimate of fair value of the assets acquired and liabilities assumed. The purchase price allocation is preliminary because of property, plant, and equipment, intangible assets, deferred taxes, uncertain tax positions, and certain other assets and liabilities are still being assessed. Upon finalizing the value of net assets acquired, adjustments to initial estimates, including goodwill, may be required. The following table provides a summary of the consideration and the identifiable assets acquired and liabilities assumed at the date of acquisition: October 13, 2022 Purchase consideration Shares exchanged $ 213,942 Fair value of vested stock-based compensation 1 8,641 Total purchase consideration $ 222,583 Identifiable assets acquired and liabilities assumed Net working capital 56,715 Property, plant, and equipment 60,395 Energy infrastructure assets 581,338 Contract assets 217,585 Finance leases receivables 77,578 Intangible assets 102,789 Other long-term assets 66,602 Long-term debt (1,019,436) Other long-term liabilities (60,408) Total net identifiable assets 83,158 Goodwill $ 139,425 1 The fair value of trade and other receivables acquired as part of t he million, representing gross contractual amounts receivable of $ million less Management’s best estimate of the contractual cash flows not expected to be collected of $ million. Intangible assets includes $50.9 million of customer relationship intangible assets that were valued based on a discounted cash flow model, which required the Company to estimate future cash flows and use judgment in determining key assumptions that include revenue growth rates, customer attrition rates, operating margins and discount rates. Factors that contributed to the recognition of goodwill include the expected future growth potential of expanded Energy Infrastructure in LATAM, the completion of two large projects and two in-flight Revenues and net loss for the acquired business from the date of acquisition to December 31, 2022 were $ 196.0 million and $60.7 million, respectively. Revenue would have been approximately $789.3 million higher and net loss would have increased by Transaction costs exclude share issuance costs related to common shares. Total transaction costs, integration costs and restructuring costs directly related to the acquisition and included in SG&A in the consolidated statements of earnings was $ 70.6 million. |
Accounts Receivable And Contrac
Accounts Receivable And Contract Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Accounts Receivable And Contract Assets | NOTE 8. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS Accounts receivable consisted of the following: December 31, 2022 Trade receivables $ 457,850 $ 213,815 Less: allowance for doubtful accounts (7,652) (10,334) Trade receivables, net $ 450,198 $ 203,481 Other receivables 6,380 8,725 Total accounts receivable $ 456,578 $ 212,206 Aging of trade receivables: December 31, 2022 Current to 90 days $ 405,196 $ 183,105 Over 90 days 52,654 30,710 $ 457,850 $ 213,815 Movement in allowance for doubtful accounts: December 31, 2022 Balance, January 1 $ 10,334 $ 11,439 Impairment provision additions on receivables 628 275 Amounts settled and derecognized during the period (3,499) (1,317) Currency translation effects 189 (63) Closing balance $ 7,652 $ 10,334 Movement in contract assets: December 31, 2022 Balance, January 1 $ 82,760 $ 66,722 Acquisition (Note 7) 281,509 - Unbilled revenue recognized 559,229 244,372 Amounts billed (517,828) (228,327) Currency translation effects 3,768 (7) Closing balance $ 409,438 $ 82,760 Current contract assets $ 186,259 $ 82,760 Non-current 223,179 - $ 409,438 $ 82,760 Amounts recognized as current contract assets are typically billed to customers within three months and amounts recognized as non-current |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Inventories | NOTE 9. INVENTORIES Inventories consisted of the following: December 31, 2022 Direct materials $ 107,575 $ 83,943 Repair and distribution parts 136,876 54,156 Work-in-progress 98,297 31,298 Equipment 26,550 3,290 Total inventories $ 369,298 $ 172,687 2022 2021 Work-in-progress $ 41,986 $ 36,169 The amount of inventory and overhead costs recognized as an expense and included in COGS during 2022 was $1,455.1 million (December 31, 2021 – $757.9 million). COGS is made up of direct materials, direct labour, depreciation on manufacturing assets, post-manufacturing expenses, and overhead. COGS also includes inventory write-downs pertaining to obsolescence and aging, and recoveries of past write-downs upon disposition. The net change in inventory reserves charged to the consolidated statements of earnings and included in COGS for the year ended December 31, 2022 was $2.1 million (December 31, 2021 – $6.1 million). The costs related to the construction of energy infrastructure assets determined to be finance leases are accounted for as work-in-progress |
Property, Plant And Equipment A
Property, Plant And Equipment And Energy Infrastructure Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Property, Plant And Equipment And Energy Infrastructure Assets | N OT E Land Building Equipment Assets under Total property, plant and Energy Cost January 1, 2022 $ 18,411 $ 114,021 $ 64,492 $ 3,068 $ 199,992 $ 839,734 Acquisition (Note 7) 4,237 31,864 22,952 1,342 60,395 581,338 Additions - 6 2,001 6,036 8,043 107,797 Reclassification - 885 4,022 (5,314) (407) - Disposals (6) (1,100) (1,925) - (3,031) (23,233) Currency translation effects 917 5,724 (844) (547) 5,250 36,318 December 31, 2022 $ 23,559 $ 151,400 $ 90,698 $ 4,585 $ 270,242 $ 1,541,954 Accumulated depreciation January 1, 2022 $ - $ (50,087) $ (53,491) $ - $ (103,578) $ (229,406) Depreciation charge - (7,205) (8,352) - (15,557) (83,289) Impairment - - - - - (1,233) Disposals - 987 1,827 - 2,814 9,671 Currency translation effects - (2,361) 945 - (1,416) 12,641 December 31, 2022 $ - $ (58,666) $ (59,071) $ (117,737) $ (291,616) Net book value – December 31, 2022 $ 23,559 $ 92,734 $ 31,627 $ 4,585 $ 152,505 $ 1,250,338 Land Building Equipment Assets under Total property, plant and Energy infrastructure assets Cost January 1, 2021 $ 18,471 $ 112,179 $ 63,844 $ 4,050 $ 198,544 $ 881,684 Additions - - 831 4,323 5,154 52,187 Reclassification - 2,327 2,566 (5,297) (404) - Disposals - (66) (2,436) - (2,502) (82,304) Currency translation effects (60) (419) (313) (8) (800) (11,833) December 31, 2021 $ 18,411 $ 114,021 $ 64,492 $ 3,068 $ 199,992 $ 839,734 Accumulated depreciation January 1, 2021 $ - $ (44,334) $ (51,574) $ - $ (95,908) $ (243,870) Depreciation charge - (5,956) (4,451) - (10,407) (55,466) Impairment - - - - - (537) Disposals - 66 2,351 - 2,417 62,990 Currency translation effects - 137 183 - 320 7,477 December 31, 2021 $ - $ (50,087) $ (53,491) $ - $ (103,578) $ (229,406) Net book value – December 31, 2021 $ 18,411 $ 63,934 $ 11,001 $ 3,068 $ 96,414 $ 610,328 Depreciation of PP&E and energy infrastructure assets included in earnings for the year ended December 31, 2022, was $ 98.8 million (December 31, 2021 – $65.9 million), of which $94.7 million was included in COGS (December 31, 2021 – $64.6 million) and $4.1 million was included in SG&A (December 31, 2021 – $1.3 million). Impairment of energy infrastructure assets included in earnings for the year ended December 31, 2022, was $ 1.2 million (December 31, 2021 – $0.5 million). |
Lease Right-Of-Use Assets
Lease Right-Of-Use Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Lease Right-Of-Use Assets | NOTE 11. LEASE RIGHT-OF-USE Land and buildings Equipment Total lease right-of-use assets Cost January 1, 2022 $ 58,380 $ 24,359 $ 82,739 Acquisition (Note 7) 31,192 1,240 32,432 Additions 7,173 4,029 11,202 Disposal (3,935) (6,129) (10,064) Currency translation effects 1,297 1,559 2,856 December 31, 2022 $ 94,107 $ 25,058 $ 119,165 Accumulated depreciation January 1, 2022 $ (20,198) $ (12,654) $ (32,852) Depreciation charge (9,994) (5,824) (15,818) Disposal 3,543 5,731 9,274 Currency translation effects (508) (889) (1,397) December 31, 2022 $ (27,157) $ (13,636) $ (40,793) Net book value – December 31, 2022 $ 66,950 $ 11,422 $ 78,372 Land and buildings Equipment Total lease right-of-use assets Cost January 1, 2021 $ 56,242 $ 19,360 $ 75,602 Additions 4,097 6,778 10,875 Disposal (1,644) (1,583) (3,227) Currency translation effects (315) (196) (511) December 31, 2021 $ 58,380 $ 24,359 $ 82,739 Accumulated depreciation January 1, 2021 $ (13,527) $ (7,891) $ (21,418) Depreciation charge (8,350) (5,492) (13,842) Disposal 1,535 714 2,249 Currency translation effects 144 15 159 December 31, 2021 $ (20,198) $ (12,654) $ (32,852) Net book value – December 31, 2021 $ 38,182 $ 11,705 $ 49,887 Depreciation of lease right-of-use |
Finance Lease Receivable
Finance Lease Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Disclosure Of Finance Lease Receivable Explanatory | NOTE 12. FINANCE LEASES RECEIVABLE The Company has entered into finance lease arrangements for certain of its energy infrastructure assets, with initial terms ranging from three The value of the finance lease receivable is comprised of the following: Minimum lease payments and unguaranteed Present value of minimum lease payments December 31, 2022 2021 2022 2021 Less than one year $ 73,614 $ 16,420 $ 60,020 $ 15,248 Between one and five years 196,314 64,739 149,052 49,546 Later than five years 144,482 62,827 85,432 38,564 $ 414,410 $ 143,986 $ 294,504 $ 103,358 Less: Unearned finance income (119,906) (40,628) - - $ 294,504 $ 103,358 $ 294,504 $ 103,358 December 31, 2022 2021 Balance, January 1 $ 103,358 $ 64,274 Acquisition (Note 7) 110,097 - Additions 86,602 40,154 Interest income 14,801 5,417 Billings and payments (33,740) (6,597) Currency translation effects 13,386 110 Closing balance $ 294,504 $ 103,358 For the years ended December 31, 2022 and 2021 the Company recognized selling profit related to the commencement of finance leases of $ 17.5 million and $ 6.2 million, respectively. Additionally, the Company recognized $ 14.8 million and $5.4 million of interest income on the finance leases receivable, during the years ended December 31, 2022 and 2021. Income related to variable lease payments was nominal during the years ended December 31, 2022 and 2021. The average interest rates implicit in the leases are fixed at the contract date for the entire lease term. At December 31, 2022, the average interest rate was 9.4 percent per annum (December 31, 2021 – 8.0 percent). The finance leases receivables at the end of reporting period are neither past due nor impaired. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Other Assets | NOTE 13. OTHER ASSETS December 31, 2022 2021 Investment in associates and joint ventures $ 34,977 $ 27,064 Long-term receivables 1 34,127 24,172 Prepaid deposits 13,972 79 Total other assets $ 83,076 $ 51,315 1 Included in long-term receivables are preferred shares in the amount of $28.0 million (December 31, 202 1 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Intangible Assets | NOTE 14. INTANGIBLE ASSETS Customer and other Software Total intangible Cost January 1, 2022 $ 69,594 $ 49,069 $ 118,663 Acquisition (Note 7) 80,514 22,275 102,789 Disposal - (11) (11) Reclassification - 407 407 Currency translation effects 1,202 2,563 3,765 December 31, 2022 $ 151,310 $ 74,303 $ 225,613 Accumulated amortization January 1, 202 2 $ (63,817) $ (44,728) $ (108,545) Amortization charge (7,239) (2,198) (9,437) Disposal - 11 11 Currency translation effects (2,371) (2,498) (4,869) December 31, 2022 $ (73,427) $ (49,413) $ (122,840) Net book value – December 31, 2022 $ 77,883 $ 24,890 $ 102,773 Customer and other Software Total intangible Cost January 1, 2021 $ 69,824 $ 48,698 $ 118,522 Reclassification - 404 404 Currency translation effects (230) (33) (263) December 31, 2021 $ 69,594 $ 49,069 $ 118,663 Accumulated amortization January 1, 2021 $ (59,296) $ (42,682) $ (101,978) Amortization charge (4,642) (2,079) (6,721) Currency translation effects 121 33 154 December 31, 2021 $ (63,817) $ (44,728) $ (108,545) Net book value – Decembe $ 5,777 $ 4,341 $ 10,118 |
Goodwill and Impairment Review
Goodwill and Impairment Review of Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Goodwill and Impairment Review of Goodwill | NOTE 15. GOODWILL AND IMPAIRMENT REVIEW OF GOODWILL December 31, 2022 2021 Balance, January 1 $ 566,270 $ 576,028 Acquisition (Note 7) 139,425 - Impairment (48,000) - Currency translation effects 21,682 (9,758) Closing balance $ 679,377 $ 566,270 Goodwill is allocated to CGU’s which are the Company’s operating segments that represents the lowest level at which goodwill is monitored for internal management purposes. During the fourth quarter of 2022, the Company reassessed its operating and reporting segments, refer to Note 35, and goodwill was re-allocated to the CGU’s representing the Company’s four operating segments. As a result, the Company performed its annual goodwill assessment on the new operating segments, comparing the carrying value and recoverable amounts for each segment in accordance with IAS 36.10(b). Goodwill acquired through historical business combinations was allocated to the Canada, USA, LATAM, and EH operating segments. Goodwill that was previously allocated to the prior ROW operating segment was re-allocated value-in-use In assessing whether goodwill has been impaired, the carrying amount of each operating segment (including goodwill) is compared with its recoverable amount. The recoverable amount is the higher of the fair value less costs to sell and value-in-use. The recoverable amounts for the operating segments have been determined based on value-in-use value-in-use. At September 30, 2022, the Company determined that there was a $48.0 million impairment in Canada. Key Assumptions Used in Value-In-Use The Company completed its annual assessment for goodwill impairment and determined that the recoverable amount for the Canada, USA, LATAM and EH operating segments exceeded the carrying amount using a 12.0 percent (December 31, 2021 – 10.7 percent), 10.7 percent (December 31, 2021 – 9.4 percent), 15.3 percent and 14.5 post-tax The estimation of value-in-use The USA, EH, and Canada operating segments have sufficient room as their recoverable amounts are significantly higher than their carrying values, and therefore, the sensitivities will not indicate an impairment. The sensitivities below would not put Canada in an impairment due to the impairment that was recognized during the third quarter of 2022, and an improved cash flow outlook for the region. LATAM is more sensitive to changes in EBIT and the discount rate as follows: • EBIT: Management has made estimates relating to the amount and timing of revenue recognition for projects included in backlog, and the assessment of the likelihood of maintaining and growing market share. For each ten percent change in EBIT, the impact on the value-in-use • Discount Rate: Management determines a discount rate for each segment based on the estimated weighted average cost of capital of the Company, using the five-year average of the Company’s peer group debt to total enterprise value, adjusted for a number of risk factors specific to each operating segment. This discount rate has been calculated using an estimated risk-free rate of return adjusted for the Company’s estimated equity market risk premium, the Company’s cost of debt, and the tax rate in the local jurisdiction. For each one percent change in the discount rate, the impact on the value-in-use Management will continue to assess the long-term projected cash flows, as certain factors may cause a material variance from previously used cash flow projections. Management notes that there is potential for future impairments as interest rates continue to fluctuate, and as the Company gets more visibility regarding future cash flows. |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Accounts Payable and Accrued Liabilities | NOTE 16. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES December 31, 2022 2021 Accounts payable and accrued liabilities $ 610,579 $ 234,212 Accrued dividend payable 3,093 2,242 Cash-settled share-based payments 13,477 4,293 Total accounts payable and accrued liabilities $ 627,149 $ 240,747 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Classes of other provisions [abstract] | |
Provisions | NOTE 17. PROVISIONS December 31, 2022 2021 Warranty provision $ 13,411 $ 6,636 Legal provision 3,406 - Restructuring provision 2,009 - Total provisions $ 18,826 $ 6,636 2022 Warranty Provision Legal Provision Restructuring Provision Total Balance, January 1 $ 6,636 $ - $ - $ 6,636 Acquisition (Note 7) 5,888 2,691 - 8,579 Additions during the year 4,395 717 2,009 7,121 Amounts settled and released in the year (3,669) - - (3,669) Currency translation effects 161 (2) - 159 Closing balance $ 13,411 $ 3,406 $ 2,009 $ 18,826 2021 Warranty Provision Legal Provision Restructuring Provision Total Balance, January 1 $ 10,549 $ - $ - $ 10,549 Additions during the year 849 - - 849 Amounts settled and released in the year (4,681) - - (4,681) Currency translation effects (81) - - (81) Closing balance $ 6,636 $ - $ - $ 6,636 |
Deferred Revenues
Deferred Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Deferred Revenues | NOTE 18. DEFERRED REVENUES December 2022 2021 Balance, January 1 $ 84,614 $ 35,409 Acquisition (Note 7) 135,409 - Cash received in advance of revenue recognition 526,924 167,956 Revenue subsequently recognized (354,531) (118,438) Currency translation effects 7,104 (313) Closing balance $ 399,520 $ 84,614 Current deferred revenues $ 366,085 $ 84,614 Non-current 33,435 - $ 399,520 $ 84,614 Amounts recognized as current deferred revenues are typically recognized into revenue within six months and amounts recognized as non-current |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Long-Term Debt | NOTE 19. LONG-TERM DEBT In October 2022 the Company secured new debt financing as part of the Transaction. The debt financing was comprised of US$625.0 million aggregate principal amount of senior secured notes due 2027 (the “Notes”), a US$150.0 million three-year secured term loan facility (the “Term Loan”), and a US$700 million three-year secured revolving credit facility (the “Revolving Credit Facility”). Together the Notes, Term Loan, Revolving Credit Facility along with cash on hand were used to fully repay the existing Enerflex and Exterran Notes, Bank Facility and Asset-Based Facility. The Term Loan and the Revolving Credit Facility have a maturity date of October 13, 2025 (the “Maturity Date”). In addition, the Revolving Credit Facility may be increased by US$150.0 million at the request of the Company, subject to the lenders’ consent. The Maturity Date of the Revolving Credit Facility may be extended annually on or before the anniversary date with the consent of the lenders. On the last business day of each quarter end beginning on September 30, 2023 the Company is required to make a US$10.0 million payment to be applied to the outstanding principal of the Term Loan. There are no required or scheduled repayments of principal until the maturity date of the Revolving Credit Facility. Drawings on the Revolving Credit Facility are available by way of Prime Rate loans, U.S. Base Rate loans, Secured Overnight Financing Rate (“SOFR”) loans, and Bankers’ Acceptance notes. The Company may also draw on the Revolving Credit Facility through bank overdrafts in either Canadian or U.S. dollars and issue letters of credit under the Revolving Credit Facility. The initial drawing as well as subsequent rollovers and conversions on the Term Loan are available through U.S. Base Rate Loans and SOFR Loans. Pursuant to the terms and conditions of the Revolving Credit Facility and the Term Loan, a margin is applied to drawings on the Revolving Credit Facility in addition to the quoted interest rate. The margin is established in basis points and is based on a consolidated net debt to earnings before finance costs, income taxes, depreciation and amortization (“EBITDA”) ratio. The margin is adjusted effective the first day of the third month following the end of each fiscal quarter based on the above ratio. The Notes consist of US$625.0 million principal amount, bears interest of 9.00 percent, and has a maturity of October 15, 2027. The Revolving Credit Facility, Term Loan and the Notes are secured. The Revolving Credit Facility and Term Loan rank senior to the Notes. The Company is required to maintain certain covenants on the Revolving Credit Facility, Term Loan and the Notes as follows, all calculated on a rolling four-quarter basis: • Senior secured net funded debt to EBITDA ratio not to exceed 2.5:1 • Net funded debt to EBITDA ratio not to exceed 4.5:1 4.0:1 • Interest coverage ratio for each quarter end not to be less than 2.5:1 As at December 31, 2022, the Company was in compliance with its covenants. The composition of the borrowings on the Revolving Credit Facility, Term Loan, and the Company’s Notes were as follows: December 31 2022 2021 Drawings on the Revolving Credit Facility $ 459,202 $ - Drawings on the Term Loan (US$150,000) 203,160 - Notes due October 15, 20 2 846,500 - Drawings on the Bank Facility - 30,522 Drawings on the Asset-Based Facility - 37,411 Notes due December 15, 2024 - 148,119 Notes due December 15, 2027 - 118,746 Deferred transaction costs and Notes discount (118,537) (3,376) $ 1,390,325 $ 331,422 Current portion of long-term debt $ 27,088 $ - Non-current 1,363,237 331,422 $ 1,390,325 $ 331,422 The weighted average interest rate on the Revolving Credit Facility for year ended December 31, 2022 was 7.0 percent (December 31, 2021 – nil), and the weighted average interest rate on the Term Loan for the year ended December 31, 2022 was 7.8 percent (December 31, 2021 – nil). At December 31, 2022 without considering renewal at similar terms, the Canadian dollar equivalent principal payments due over the next five years are $1,508.9 million, and nil thereafter. |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Leases [Abstract] | |
Lease Liabilities | NOTE 20. LEASE LIABILITIES December 31, 2022 2021 Balance, January 1 $ 57,014 $ 61,926 Acquisition (Note 7) 39,845 - Additions 9,977 9,721 Lease interest 3,398 3,029 Payments made against lease liabilities (19,156) (17,244) Currency translation effects and other 1,955 (418) Closing balance $ 93,033 $ 57,014 Current portion of lease liabilities $ 20,125 $ 13,906 Non-current 72,908 43,108 $ 93,033 $ 57,014 In addition to the lease payments made above, during the year ended December 31, 2022, the Company paid $0.8 million (December 31, 2021 – $0.3 million) relating to short-term and low-value Future minimum lease payments under non-cancellable December 31, 2022 2023 $ 23,776 2024 18,427 2025 15,493 2026 12,173 2027 9,848 Thereafter 32,287 $ 112,004 Less: Imputed interest 18,811 Short-term leases 156 Low-value 4 $ 93,033 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 21. INCOME TAXES (a) Income Tax Recognized in Net Earnings The components of income tax expense were as follows: Years ended December 31, 2022 2021 Current income taxes $ 17,945 $ 13,135 Deferred income taxes 3,265 43,422 $ 21,210 $ 56,557 (b) Reconciliation of Tax Expense The provision for income taxes differs from that which would be expected by applying Canadian statutory rates. A reconciliation of the difference is as follows: Years ended December 31, 2022 2021 Earnings before income taxes $ (79,733) $ 38,102 Canadian statutory rate 23.4% 23.8% Expected income tax provision $ (18,658) $ 9,068 Add (deduct): Change in unrecognized deferred tax asset 27,664 44,704 Impairment of goodwill 11,232 - Exchange rate effects on tax basis (2,223) (2,269) Earnings taxed in foreign jurisdictions 543 2,313 Revaluation of Canadian deferred tax assets due to change in statutory rate - (660) Withholding tax on dividends received from foreign subsidiaries - 2,763 Amounts not deductible (taxable) for tax purposes 4,373 811 Impact of accounting for associates and joint ventures (1,104) (160) Other (617) (13) Income tax expense from continuing operations $ 21,210 $ 56,557 The applicable statutory tax rate is the aggregate of the Canadian federal income tax rate of 15.0 percent (2021 – 15.0 percent) and the Alberta provincial income tax rate of 8.4 percent (2021 – 8.8 percent). The Company’s effective tax rate is subject to fluctuations in the Argentine peso and Mexican peso exchange rate against the U.S. dollar. Since the Company holds significant energy infrastructure assets in Argentina and Mexico, the tax base of these assets is denominated in Argentine peso and Mexican peso, respectively. The functional currency is the U.S. dollar and as a result, the related local currency tax bases are revalued periodically to reflect the closing U.S. dollar rate against the local currency. Any movement in the exchange rate results in a corresponding unrealized exchange rate gain or loss being recorded as part of deferred income tax expense or recovery. During periods of large fluctuation or devaluation of the local currency against the U.S. dollar, these amounts may be significant but are unrealized and may reverse in the future. Recognition of these amounts is required by IFRS, even though the revalued tax basis does not generate any cash tax obligation or liability in the future. (c) Income Tax Recognized in Other Comprehensive Income Years ended December 31, 2022 2021 Deferred Tax Arising on income and expenses recognized in other comprehensive income: Fair value remeasurement of hedging instruments entered into for cash flow hedges $ (55) $ 77 Arising on income and expenses reclassified from other comprehensive income to net earnings: Relating to cash flow hedges 59 (53) Total income tax recognized in other comprehensive income $ 4 $ 24 (d) Net Deferred Tax Assets (Liabilities) Deferred tax assets and liabilities arise from the following: Accounting provisions and accruals Tax losses Long-term assets Other Exchange rate effects on tax bases Cash flow hedges Total 1 January 1, 2022 $ 7,022 $ 6,519 $ (86,255) $ 511 $ (10,476) $ - $ (82,679) Acquisition (Note 7) 756 49,513 (30,308) - (6,538) - 13,423 Charged to net earnings (7,467) 1,325 1,022 - 1,858 (4) (3,266) Charged to OCI - - - - - 4 4 Exchange differences 51 (860) (2,511) (511) (613) - (4,444) December 31, 2022 $ 362 $ 56,497 $ (118,052) - $ (15,769) - $ (76,962) 1 Accounting provisions and accruals Tax losses Long-term Other Exchange on tax bases Cash flow Total 1 January 1, 2021 $ 18,058 $ 28,969 $ (73,956) $ 544 $ (12,799) $ (8) $ (39,192) Charged to net earnings (10,945) (21,808) (12,398) (572) 2,269 32 (43,422) Charged to OCI - - - - - (24) (24) Exchange differences (91) (642) 99 539 54 (41) December 31, 2021 $ 7,022 $ 6,519 $ (86,255) $ 511 $ (10,476) $ - $ (82,679) 1 (e) Unrecognized Deferred Tax Assets As at December 31, 202 2 The deductible temporary differences consist of: Years ended December 31, 2022 2021 Canadian: Tax losses $ 215,703 $ 138,408 Long-term assets 23,896 22,758 Accounting provisions and other accruals 29,143 26,363 Foreign 1 Tax losses 2,089,604 38,374 Long-term assets (59,931) - Accounting provisions and other accruals (126,117) - $ 2,172,298 $ 225,903 1 . The Company’s unused tax losses and tax credits are subject to expiration in the years 2023 through 2042 with some having an indefinite lif |
Share Capital Authorized
Share Capital Authorized | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Share capital Authorized [Abstract] | |
Share Capital Authorized | NOTE 22. SHARE CAPITAL AUTHORIZED The Company is authorized to issue an unlimited number of common shares. Share capital comprises only one class of ordinary shares. The ordinary shares carry a voting right and a right to a dividend. Issued and Outstanding 2022 2021 December 31, Number of common shares Common Number of common shares Common Balance, January 1 89,678,845 $ 375,524 89,678,845 $ 375,524 Issued on Acquisition (Note 7) 34,013,055 213,942 - - Exercise of stock options 47,120 361 - - Closing balance 123,739,020 $ 589,827 89,678,845 $ 375,524 Enerflex acquired all issued and outstanding Exterran common stock in exchange for 1.021 Enerflex common shares. Enerflex issued 34,013,055 million Enerflex common shares with a fair value of $213.9 million, based on the October 12, 2022, closing share price of $6.29. Total dividends declared in the year were $9.8 million, or $0.10 per share (December 31, 2021 – $7.6 million, or $0.085 per share). |
Contributed Surplus
Contributed Surplus | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Contributed Surplus | NOTE 23. CONTRIBUTED SURPLUS Contributed surplus consists of accumulated stock option expense less the fair value of the options at the grant date that have been exercised and reclassified to share capital. Changes in contributed surplus were as follows: December 31, 2022 2021 Balance, January 1 $ 658,615 $ 656,832 Share-based compensation 1,558 1,783 Exercise of stock options (101 ) - Closing balance $ 660,072 $ 658,615 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
REVENUE | NOTE 24. REVENUE Years ended December 31, 2022 2021 Energy Infrastructure 1,2 $ 381,087 $ 278,653 After-Market Services 443,660 327,376 Engineered Systems 953,051 354,127 Total revenue $ 1,777,798 $ 960,156 1 2 Revenue by geographic location, which is attributed by destination of sale, was as follows: Years ended December 31, 2022 2021 United States $ 890,899 $ 451,675 Canada 261,865 173,181 Oman 119,906 84,486 Bahrain 85,540 40,361 Argentina 80,524 34,321 Australia 65,618 61,520 Mexico 64,325 27,355 Brazil 45,367 17,289 Iraq 25,917 - Colombia 21,278 17,795 United Arab Emirates 20,995 2,494 Egypt 20,319 7,323 Other 75,245 42,356 Total revenue $ 1,777,798 $ 960,156 The following table outlines the Company’s unsatisfied performance obligations, by product line, as at December 31, 2022: Less than one year One to two years Greater than two years Total Energy Infrastructure $ 550,009 $ 492,096 $ 1,826,923 $ 2,869,028 After-Market Services 76,260 26,176 49,583 152,019 Engineered Systems 1,483,773 22,097 - 1,505,870 $ 2,110,042 $ 540,369 $ 1,876,506 $ 4,526,917 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
Share-Based Compensation | NOTE 25. SHARE-BASED COMPENSATION (a) Share-Based Compensation Expense The share-based compensation expense included in the determination of net earnings was: Years ended December 31, 2022 2021 Equity settled share-based payments $ 1,558 $ 1,783 Deferred share units 3,622 3,053 Phantom share entitlement plan 117 102 Performance share units 4,172 3,470 Restricted share units 4,454 2,751 Cash performance target 2,239 1,778 Share-based compensation expense $ 16,162 $ 12,937 (b) Equity-Settled Share-Based Payments 2022 2021 Number of options Weighted average exercise price Number of Weighted Options outstanding, beginning of period 4,456,444 $ 11.66 4,057,142 $ 12.78 Granted - - 654,847 7.85 Exercised 1 (47,120) 5.51 - - Forfeited (27,286) 13.51 (24,267) 9.25 Expired (1,292,809) 13.98 (231,278) 20.75 Options outstanding, end of period 3,089,229 $ 10.77 4,456,444 $ 11.66 Options exercisable, end of period 1,671,421 $ 12.48 2,445,230 $ 13.62 1 The Company did not grant stock options for the year ended December 31, 2022 (December 31, 2021 – 654,847). Using the Black-Scholes option pricing model, the weighted average fair value of stock options granted for the period ended December 31, 2021 was $2.89 per option. The following table summarizes options outstanding and exercisable at December 31, 2022: Options Outstanding Options Exercisable Range of exercise prices Number Weighted Weighted average exercise price Number Weighted Weighted average exercise price $5.51 – $6.68 783,880 4.62 $ 5.51 286,552 4.62 $ 5.51 $6.69 – $13.51 1,072,991 4.30 9.81 460,251 2.95 11.48 $13.52 – $16.12 1,232,358 2.86 14.95 924,618 2.70 15.14 Total 3,089,229 3.81 $ 10.77 1,671,421 3.10 $ 12.48 (c) Deferred Share Units The Company offers a DSU plan for executives and non-employee non-employee Additional Enerflex DSUs will be credited on the regular dividend payment dates as all dividends are assumed to be reinvested. DSUs may be granted to eligible participants on an annual basis and will vest upon being credited to the executive or non-employee DSUs represent an indexed liability of the Company relative to the Company’s share price. For the year ended December 31, 2022, the value of directors’ compensation and executive bonuses elected to be received in DSUs totalled $2.2 million (December 31, 2021 – $2.1 million). The Company paid $0.6 million for the year ended December 31, 2022 representing units vested in the year (December 31, 2021 – nil Number of DSUs Weighted average grant date fair value per unit DSUs outstanding, January 1, 2022 1,406,170 $ 10.51 Granted 307,037 7.12 In lieu of dividends 20,806 6.86 Vested (108,500) 5.45 DSUs outstanding, December 31, 2022 1,625,513 $ 10.16 The carrying amount of the liability relating to DSUs as at December 31, 2022 included in current liabilities (d) Phantom Share Entitlement Plan The Company utilizes a PSE plan for key employees of affiliates located in Australia and the UAE, for whom the Company’s Stock Option Plan would have negative personal taxation consequences. The exercise price of each PSE equals the average of the market price of the Company’s shares on the TSX for the five days preceding the date of the grant. The PSEs vest at a rate of one-fifth In 2022, no PSEs were granted to employees (December 31, 2021 – 24,715). The intrinsic value of the vested awards at December 31, 2022 was $0.8 million (December 31, 2021 – $0.9 million). Number of PSEs Weighted average grant PSEs outstanding, January 1, 2022 222,920 $ 12.15 Expired (22,669) 11.69 PSEs outstanding, December 31, 2022 200,251 $ 12.21 The carrying amount of the liability relating to the PSEs as at December 31, 2022 included in current liabilities was $0.3 million (December 31, 2021 – $0.2 million) and in other long-term liabilities was $0.1 million (December 31, 2021 – $0.1 million). (e) Performance Share Units The Company offers a PSU plan for executive officers of the Company. A PSU is a notional unit that entitles the holder to receive payment, as described below, from the Company equal to the number of vested PSUs multiplied by the weighted average price per share on the TSX during the last five trading days immediately preceding the grant. Vesting is based on the achievement of performance measures and objectives specified by the Board of Directors. The Board of Directors assess performance to determine the vesting percentage, which can range from zero percent to 200 percent. Within 14 days after the determination of the vesting percentage, the holder will be paid for the vested PSUs either in cash or in shares of the Company acquired on the open market on behalf of the holder, at the discretion of the Company. Additional Enerflex PSUs will be credited on the regular dividend payment dates as all dividends are assumed to be reinvested. The Company paid $2.2 million for the year ended December 31, 2022 representing units vested in the year (December 31, 2021 – $1.0 million). Number of PSUs Weighted average grant PSUs outstanding, January 1, 2022 1,308,416 $ 9.02 Granted 634,382 6.29 In lieu of dividends 17,835 6.93 Vested (318,887) 6.10 PSUs outstanding, December 31, 2022 1,641,746 $ 8.51 The carrying amount of the liability relating to PSUs as at December 31, 2022 included in current liabilities was $4.0 million (December 31, 2021 – $2.0 million) and in other long-term liabilities was $2.5 million (December 31, 2021 – $2.6 million). (f) Restricted Share Units The Company offers a RSU plan to executive officers and other key employees of the Company or its related entities. RSUs may be granted at the discretion of the Board. An RSU is a notional unit that entitles the holder to receive payment, as described below, from the Company equal to the number of vested RSUs multiplied by the weighted average price per share on the TSX during the last five trading days immediately preceding the vesting date. Unless otherwise determined by the Board, RSUs vest at a rate of one-third Additional Enerflex RSUs will be credited on the regular dividend payment dates as all dividends are assumed to be reinvested. In 2022, the Board granted 995,336 RSUs to executive officers and other key employees of the Company (2021 – 472,819). In connection with the Transaction, Enerflex replaced the Exterran cash-settled share-based with 572,260 units RSU’s to executive officers and other key employees. The Company paid $2.4 million for units vested during the year ended December 31, 2022 (December 31, 2021 – $2.3 million). Number of RSUs Weighted average grant RSUs outstanding, January 1, 2022 896,474 $ 7.62 Granted 995,336 6.29 Acquisition (Note 7) 572,260 6.29 In lieu of dividends 11,344 6.98 Vested (394,537) 6.15 Forfeited (79,044) 6.73 RSUs outstanding, December 31, 2022 2,001,833 $ 6.90 The carrying amount of the liability included in current liabilities relating to RSUs at December 31, 2022 was $4.3 million (December 31, 2021 – $1.3 million) and in other long-term liabilities was $0.7 million (December 31, 2021 – nil). (g) Cash Performance Target Plan The Company offers a CPT plan to certain non-executive, one-third During 2022, the Board of Directors distributed $3.1 million of CPT cash grants (2021 – $2.2 million). The Company paid $1.6 million for the year ended December 31, 2022, representing units vested in the year (December 31, 2021 – $1.5 million). The weighted average grant fair value per unit was $6.29 (December 31, 2021 – $7.85), using the average share price over the five days preceding the grant date. The carrying amount of the liability included in current liabilities relating to CPT plan at December 31, 2022 was $1.4 million (December 31, 2021 – $0.8 million). (h) Employee Share Purchase Plan The Company offers an employee share purchase plan whereby employees who meet the eligibility criteria can purchase shares by way of payroll deductions. There is a Company match of up to $1,000 per employee per annum based on contributions by the Company of $1 for every $3 contributed by the employee. Company contributions vest to the employee immediately. Company contributions are charged to SG&A when paid. This plan is administered by a third party. |
Retirement Benefits Plan
Retirement Benefits Plan | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
RETIREMENT BENEFITS PLAN | NOTE 26. RETIREMENT BENEFITS PLAN The Company sponsors arrangements for substantially all of its employees through defined contribution plans in Canada, UK, Asia, and Australia, and a 401(k) matched savings plan in the United States. In the case of the defined contribution plans, regular contributions are made to the employees’ individual accounts, which are administered by a plan trustee, in accordance with the plan document. Both in the case of the defined contribution plans and the 401(k) matched savings plan, the pension expenses recorded in earnings are the amounts of actual contributions the Company is required to make in accordance with the terms of the plans. Years ended December 31, 2022 2021 Defined contribution plans $ 5,169 $ 4,567 401(k) matched savings plan 4,110 3,025 Net pension expense $ 9,279 $ 7,592 |
Finance Costs And Income
Finance Costs And Income | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
FINANCE COSTS AND INCOME | NOTE 27. FINANCE COSTS AND INCOME Years ended December 31, 2022 2021 Finance Costs Short and long-term borrowings 1 $ 46,009 $ 17,252 Interest on lease liability 3,398 3,029 Total finance costs $ 49,407 $ 20,281 Finance Income Interest income $ 10,484 $ 3,286 Net finance costs $ 38,923 $ 16,995 1 |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share Calculations | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Reconciliation of Earnings Per Share Calculations | NOTE 28. RECONCILIATION OF EARNINGS PER SHARE CALCULATIONS Year ended December 31, 2022 Net loss Weighted average Per share Basic $ (100,943 ) 97,045,917 $ (1.04 ) Dilutive effect of stock option conversion - - - Diluted $ (100,943 ) 97,045,917 $ (1.04 ) Year ended December 31, 2021 Net loss Weighted average Per share Basic $ (18,455 ) 89,678,845 $ (0.21 ) Dilutive effect of stock option conversion - - - Diluted $ (18,455 ) 89,678,845 $ (0.21 ) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial Instruments | NOTE 29. FINANCIAL INSTRUMENTS Designation and Valuation of Financial Instruments The Company has designated its financial instruments as follows: December 31, 2022 Carrying value Estimated fair value Financial Assets Cash and cash equivalents $ 253,776 $ 253,776 Derivative instruments in designated hedge accounting relationships 901 901 Loans and receivables: Accounts receivable 456,578 456,578 Preferred shares receivable 27,954 28,702 Financial Liabilities Derivative instruments in designated hedge accounting relationships 977 977 Other financial liabilities: Accounts payable and accrued liabilities 627,149 627,149 Long-term debt – Revolving Credit Facility 459,202 459,202 Long-term debt – Term Loan 203,160 203,160 Long-term debt – Notes 846,500 869,288 Other long-term liabilities 21,757 21,757 December 31, 2021 Carrying value Estimated fair value Financial Assets Cash and cash equivalents $ 172,758 $ 172,758 Derivative instruments in designated hedge accounting relationships 294 294 Loans and receivables: Accounts receivable 212,206 212,206 Preferred shares receivables 24,172 27,471 Financial Liabilities Derivative instruments in designated hedge accounting relationships 180 180 Other financial liabilities: Accounts payable and accrued liabilities 240,747 240,747 Long-term debt – Bank Facility 30,522 30,522 Long-term debt – Asset-Based Facility 37,411 37,411 Long-term debt – Notes 266,865 280,295 Other long-term liabilities 15,785 15,785 Fair Values of Financial Assets and Liabilities The following table presents information about the Company’s financial assets and financial liabilities measured at fair value on a recurring basis as at December 31, 2022 and indicates the fair value hierarchy of the valuation techniques used to determine such fair value. During the year ended December 31, 2022, there were no transfers between Level 1 and Level 2 fair value measurements. Fair values are determined using inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Fair values determined using inputs including forward market rates and credit spreads that are readily observable and reliable, or for which unobservable inputs are determined not to be significant to the fair value, are categorized as Level 2. If there is no active market, fair value is established using valuation techniques, including discounted cash flow models. The inputs to these models are taken from observable market data where possible, including recent arm’s-length Carrying Fair Value Level 1 Level 2 Level 3 Financial Assets Derivative financial instruments $ 901 $ - $ 901 $ - Preferred shares receivable $ 27,954 $ - $ 28,702 $ - Financial Liabilities Derivative financial instruments $ 977 $ - $ 977 $ - Long-term debt – Notes $ 846,500 $ - $ 869,288 $ - Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and other liabilities are reported at amounts approximating their fair values on the consolidated statement of financial position. The fair values approximate the carrying values for these instruments due to their short-term nature. The fair value of derivative financial instruments is measured using the discounted value of the difference between the contract’s value at maturity based on the contracted foreign exchange rate and the contract’s value at maturity based on prevailing exchange rates. The financial institution’s credit risk is also taken into consideration in determining fair value. Long-term debt associated with the Company’s Notes is recorded at amortized cost using the effective interest rate method. Transaction costs associated with the debt were deducted from the debt and are being recognized using the effective interest rate method over the life of the related debt. The fair value of these Notes, determined on a discounted cash flow basis using a weighted average discount rate of 9.0 percent, was $869.3 million at December 31, 2022. Preferred Shares The Company holds preferred shares that were initially recorded at fair value and subsequently measured at amortized cost and recognized as long-term receivables in Other assets. The carrying value and estimated fair value of the preferred shares at December 31, 2022 was $ 28.0 million and $28.7 million, respectively (December 31, 2021 – $24.2 million and $27.5 million, respectively). Derivative Financial Instruments and Hedge Accounting Foreign exchange contracts are transacted with financial institutions to hedge foreign currency denominated obligations and cash receipts related to purchases of inventory and sales of products. The following table summarizes the Company’s commitments to buy and sell foreign currencies as at December 31, 2022: Notional amount Maturity Canadian Dollar Denominated Contracts Purchase contracts USD $ 29,182 January 2023 – November 2023 Sales contracts USD (26,180) January 2023 – November 2023 Purchase contracts EUR 3,568 January 2023 – March 2023 Sales contracts EUR (2,453) March 2023 Management estimates that a loss of $0.1 million All hedging relationships are formally documented, including the risk management objective and strategy. On an on-going Risks Arising from Financial Instruments and Risk Management In the normal course of business, the Company is exposed to financial risks that may potentially impact its operating results in any or all of its business segments. The Company employs risk management strategies with a view to mitigating these risks on a cost-effective basis. Derivative financial agreements are used to manage exposure to fluctuations in exchange rates and interest rates. The Company does not enter into derivative financial agreements for speculative purposes. Foreign Currency Translation Exposure In the normal course of operations, the Company is exposed to movements in the U.S. dollar, the Australian dollar, and the Brazilian real. In addition, Enerflex has significant international exposure through export from its Canadian operations, as well as a number of foreign subsidiaries, the most significant of which are located in the United States, Argentina, Brazil, Colombia, Mexico, Bahrain, Oman, the UAE, and Australia. The types of foreign exchange risk and the Company’s related risk management strategies are as follows: Transaction Exposure The Canadian operations of the Company source the majority of its products and major components from the United States. Consequently, reported costs of inventory and the transaction prices charged to customers for equipment and parts are affected by the relative strength of the Canadian dollar. The Company also sells compression and processing packages in foreign currencies, primarily the U.S. dollar. Most of Enerflex’s international orders are manufactured in the United States if the contract is denominated in U.S. dollars. This minimizes the Company’s foreign currency exposure on these contracts. The Company identifies and hedges all significant transactional currency risks. The Company has implemented a hedging policy, applicable primarily to the Canadian domiciled business units, with the objective of securing the margins earned on awarded contracts denominated in currencies other than Canadian dollars. In addition, the Company may hedge input costs that are paid in a currency other than the home currency of the subsidiary executing the contract. Translation Exposure The Company’s earnings from and net investment in foreign subsidiaries are exposed to fluctuations in exchange rates. The Company is also exposed to the translation risk of monetary items in their local currency to their functional currency. The currencies with the most significant impact are the U.S. dollar, Australian dollar, Brazilian real, and Argentine peso. Enerflex currently uses U.S. dollar denominated borrowings to hedge against a portion of the foreign exchange exposure that arises from U.S. foreign subsidiaries as a net investment hedge. As a result, exchange gains and losses on the translation of US$615.8 million in designated foreign currency borrowings are included in accumulated other comprehensive income for the year ended December 31, 2022. With the ongoing devaluation of the Argentine peso, caused by high inflation, the Company is at risk for significant foreign exchange losses. The Company has implemented risk-mitigating strategies to minimize future exposure to this currency devaluation. Assets and liabilities denominated in foreign currencies are translated into Canadian dollars using the exchange rates in effect at the reporting dates. Unrealized translation gains and losses are deferred and included in accumulated other comprehensive income. The cumulative currency translation adjustments are recognized in earnings when there has been a reduction in the net investment in the foreign operations. Earnings from foreign operations are translated into Canadian dollars each period at average exchange rates for the period. As a result, fluctuations in the value of the Canadian dollar relative to these other currencies will impact reported net earnings. The following table shows the effect of a five percent weakening of the Canadian dollar against the U.S. dollar, Australian dollar, and Brazilian real on net earnings before tax for the year ended December 31, 2022, all else being equal. A five percent strengthening of the Canadian dollar would have an equal and opposite effect. This sensitivity analysis is provided as an indicative range in a volatile currency environment. Canadian dollar weakens by five percent USD AUD BRL Earnings from foreign operations Earnings before income taxes $ 4,024 $ (113) $ 216 Sensitivity Analysis The following sensitivity analysis is intended to illustrate the sensitivity to changes in foreign exchange rates on the Company’s financial instruments and show the impact on net earnings and other comprehensive income. Financial instruments affected by currency risk include cash and cash equivalents, accounts receivable, accounts payable, and derivative financial instruments. The following table shows the Company’s sensitivity to a five percent weakening of the Canadian dollar against the U.S. dollar, Australian dollar, and Brazilian real. A five percent strengthening of the Canadian dollar would have an equal and opposite effect. This sensitivity analysis relates to the position as at December 31, 2022 and for the year then ended. Canadian dollar weakens by five percent USD AUD BRL Financial instruments held in foreign operations Other comprehensive income $ 17,625 $ 634 $ 342 Financial instruments held in Canadian operations Earnings before income taxes $ (23,450 ) $ - $ - The movement in net earnings before tax in Canadian operations is a result of a change in the fair values of financial instruments. The majority of these financial instruments are hedged. Interest Rate Risk The Company’s liabilities include long-term debt that is subject to fluctuations in interest rates. The Company’s Notes outstanding at December 31, 2022 has a fixed interest rate and therefore the related interest expense will not be impacted by fluctuations in interest rates. Conversely, the Company’s Revolving Credit Facility and Term Loan are subject to changes in market interest rates. For each one Credit Risk Financial instruments that potentially subject the Company to credit risk consist of cash equivalents, accounts receivable, net investment in finance lease, and derivative financial instruments. The Company has accounts receivable from clients engaged in various industries. These specific industries may be affected by economic factors that may impact accounts receivable. Credit quality of the customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Credit is extended based on an evaluation of the customer’s financial condition and, generally, advance payment is not required. Outstanding customer receivables are regularly monitored and an allowance for doubtful accounts is established based expected credit losses. The Company evaluates the concentration of risk at December 31, 2022 with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. At December 31, 2022 and 2021, the Company had no individual customers that accounted for more than 10 percent of its revenue or accounts receivable. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in this note. The Company does not hold collateral as security. The credit risk associated with the net investment in finance leases arises from the possibility that the counterparties may default on their obligations. In order to minimize this risk, the Company enters into finance lease transactions only in select circumstances. Close contact is maintained with the customer over the duration of the lease to ensure visibility to issues as and if they arise. The credit risk associated with derivative financial instruments arises from the possibility that the counterparties may default on their obligations. In order to minimize this risk, the Company enters into derivative transactions only with highly-rated financial institutions. Liquidity Risk Liquidity risk is the risk that the Company may encounter difficulties in meeting obligations associated with financial liabilities. In managing liquidity risk, the Company has access to a significant portion of its Revolving Credit Facility for future drawings to meet the Company’s future growth targets. As at December 31, 2022, the Company held cash and cash equivalents of $253.8 million and had drawn $662.4 million against the Revolving Credit Facility and Term Loan, leaving it with access to $313.8 million for future drawings. The Company continues to meet the covenant requirements of its funded debt, including the Revolving Credit Facility, Term Loan and Notes, with a senior secured net funded debt to EBITDA ratio of 1.1:1, compared to a maximum ratio of 2.5:1, and a net funded debt to EBITDA (“bank-adjusted net debt to EBITDA”) A liquidity analysis of the Company’s financial instruments has been completed on a maturity basis. The following table outlines the cash flows, including interest associated with the maturity of the Company’s financial liabilities, as at December 31, 2022: Less than 3 months 3 months to 1 year Greater than 1 year Total Derivative financial instruments Foreign currency forward contracts $ 712 $ 265 $ - $ 977 Accounts payable and accrued liabilities 627,149 - - 627,149 Long-term debt – Revolving Credit Facility - - 459,202 459,202 Long-term debt – Term Loan - 27,088 176,072 203,160 Long-term debt – Notes - - 846,500 846,500 Other long-term liabilities - - 21,757 21,757 The Company expects that cash flows from operations in 2023, together with cash and cash equivalents on hand, the Revolving Credit Facility and the Term Loan, will be more than sufficient to fund its requirements for investments in working capital and capital assets. |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Capital disclosures | NOTE 30. CAPITAL DISCLOSURES The capital structure of the Company consists of shareholders’ equity plus net debt. The Company manages its capital to ensure that entities in the Company will be able to continue to grow while maximizing the return to shareholders through the optimization of the debt and equity balances. The Company adjusts its capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, issue new Company shares, or access debt markets. The Company formally reviews the capital structure on an annual basis and monitors it on an on-going Net Debt to EBITDA Ratio Net debt to EBITDA is defined as short and long-term debt less cash and cash equivalents at the end of the period, divided by annualized EBITDA. At December 31, 2022, the net debt to EBITDA ratio was: Years ended December 31, 2022 2021 Long-term debt $ 1,390,325 $ 331,422 Cash and cash equivalents (253,776) (172,758) Net debt $ 1,136,549 $ 158,664 Earnings before finance costs and income taxes $ (40,810) $ 55,097 Depreciation and amortization 128,287 87,622 EBITDA $ 87,477 $ 142,719 Net debt to EBITDA ratio 12.99:1 1.11:1 The net debt to EBITDA ratio, as defined above is not equivalent to the senior secured net funded debt to EBITDA or the bank-adjusted net debt to EBITDA ratio as defined by the Company’s lenders. The bank-adjusted net debt to EBITDA ratio at December 31, 2022 was 3.3:1. As at December 31, 2022, the Company was in compliance with its covenants. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Supplemental cash flow information | NOTE 31. SUPPLEMENTAL CASH FLOW INFORMATION Years ended December 31, 2022 2021 Net change in working capital and other 1 Accounts receivable $ (56,861) $ 1,169 Contract assets (45,169) (16,038) Inventories (78,697) 39,564 Work-in-progress (5,817) (36,169) Finance leases receivable (81,049) (39,084) Income taxes receivable 3,097 19,986 Prepayments (35,198) (4,806) Accounts payable and accrued liabilities and provisions 2 77,875 50,510 Income taxes payable (11,042) 4,931 Deferred revenue 179,497 49,205 Foreign currency and other (17,954) 13,669 $ (71,318) $ 82,937 1 2 Cash interest and taxes paid and received during the period: Years ended December 31, 2022 2021 Interest paid – short- and long-term borrowings $ 29,640 $ 17,315 Interest paid – lease liabilities 3,398 3,029 Total interest paid $ 33,038 $ 20,344 Interest received 1,269 454 Taxes paid 27,813 13,725 Taxes received 5,399 23,137 Changes in liabilities arising from financing activities during the period: Years ended December 31, 2022 2021 Long-term debt, opening balance $ 331,422 $ 389,712 Debt assumed on Acquisition (Note 7) 1,022,112 - Changes from financing cash flows 90,973 (56,975) The effect of changes in foreign exchange rates (4,099) (406) Amortization of deferred transaction costs 4,046 1,186 Accretion of Notes discount 2,070 - Debt transaction costs (56,199) (2,095) Long-term debt, closing balance $ 1,390,325 $ 331,422 |
Guarantees, Commitments,And Con
Guarantees, Commitments,And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
GUARANTEES, COMMITMENTS, AND CONTINGENCIES | NOTE 32. GUARANTEES, COMMITMENTS, AND CONTINGENCIES At December 31, 2022, the Company had outstanding letters of credit of $175.1 million (December 31, 2021 - $42.1 million). The Company has purchase obligations over the next three years as follows: 2023 $ 775,339 2024 19,306 2025 1,005 Legal Proceedings Upon closing of the Transaction, Enerflex assumed a legal dispute from Exterran. On January 31, 2022 the Local Labor Board of the State of Tabasco in Mexico (the “Labor Board”) awarded a former employee MXN$ 2 , million (CAD$ 149.2 million) in connection with a dispute relating to the employee’s severance pay following termination of their employment. On February 24, 2022 this decision was served on Exterran. In March 2015, this employee was terminated and was paid the undisputed portion of their severance pay, as determined by a local labor board. From March 2015 to the present, the former employee has challenged various aspects of the severance payment through court proceedings. The Company has prevailed in these earlier processes and certain facts of the dispute were established by court rulings, including the fact that the employee’s salary was approximately MXN$3,500 per day (US$170 per day at the prevailing exchange rate). We believe the order of the Labor Board is in error and has no credible basis in law or fact. For instance, in 2017, the Labor Board ruled that the former employee was entitled to approximately MXN$1.4 million (approximately US$70,000 at the prevailing exchange rate) as severance based on an appellate court’s determination based on Company records that the employee’s salary was approximately MXN$3,500 per day. However, the Labor Board’s February 2022 order increased the amount the employee is owed to approximately US$120 million, an increase of over 170,000 percent, ignoring the actual salary that had been established and using approximately US$21,000 per day, an increase of over 12,000 percent and an amount the former employee never actually received while working for Exterran’s subsidiary. Effectively, the Labor Board awarded the employee approximately 1,900 Exterran appealed the decision, and the appeal is pending before the First Collegiate Court of the Tenth Circuit in Labor Matters, in Villahermosa, Tabasco. Among other errors that are the subject of the appeal is the Labor Board’s (a) violation of principles of res judicata one-year The Company is pursuing all available avenues to preserve its rights, including potentially asserting claims against the Mexican government should the First Collegiate Court of the Tenth Circuit in Labor Matters fail to reverse the Labor Board’s order. The Company is involved in litigation and claims associated with normal operations against which certain provisions may be made in the Financial Statements. Management is of the opinion that any resulting settlement arising from the litigation would not materially affect the consolidated financial position, results of operations, or liquidity of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Related Party Transactions | NOTE 33. RELATED PARTY TRANSACTIONS (a) Key Management Compensation Key management includes members of the Board and executive management. Remuneration of directors and executive management is determined by the Board having consideration of overall performance of individuals and market trends. Information on key management compensation is shown below: Years ended December 31, 2022 2021 Salaries, Director fees and other short-term benefits $ 6,350 $ 5,711 Post-employment compensation 1 721 580 Share-based payments 8,315 6,979 1 (b) Other Related Party Transactions Enerflex transacts with certain related parties in the normal course of business. Related parties include the Company’s 45 percent equity investment in Roska DBO and the Company’s 65 percent interest in a joint venture in Brazil. All transactions occurring with related parties were in the normal course of business operations under the same terms and conditions as transactions with unrelated companies. A summary of the financial statement impacts of all transactions with all related parties is as follows: Years ended December 31, 2022 2021 Associate – Roska DBO Revenue $ 1,755 $ 352 Purchases 4 - Accounts receivable 22 128 All related party transactions are settled in cash. |
Seasonality
Seasonality | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Seasonality | NOTE 34. SEASONALITY The energy sector in Canada and in some parts of the USA has a distinct seasonal trend in activity levels which results from well-site access and drilling pattern adjustments to take advantage of weather conditions. Generally, Enerflex’s Engineered Systems product line has experienced higher revenues in the fourth quarter of each year while Energy Infrastructure and After-Market Services product line revenues have been stable throughout the year. Energy Infrastructure revenues are also impacted by both the Company’s and its customers’ capital investment decisions. The USA, LATAM and EH segments are not significantly impacted by seasonal variations. Variations from these trends usually occur when hydrocarbon energy fundamentals are either improving or deteriorating. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Segmented Information | NOTE 35. SEGMENTED INFORMATION During the fourth quarter of 2022, the Company re-assessed • North America – comprised of operations in Canada and the USA; • Latin America – comprised of operations in Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico and Peru; and • Eastern Hemisphere – comprised of operations in the Middle East, Africa, Europe and Asia Pacific. Each of the reporting segments are supported by the Corporate head office. Corporate overheads are allocated to the operating segments based on revenue. In assessing its reportable operating segments, the Company considered economic characteristics, the nature of products and services provided, the nature of production processes, the types of customers for its products and services, and distribution methods used. These considerations factored into the decision to combine Canada and USA into one reporting segment. For each of the operating segments, the CODM reviews internal management reports on at least a quarterly basis. Goodwill that was previously allocated to the ROW segment was distributed between the LATAM and EH segments on a basis of a relative fair value allocation. The fair value allocation was determined based on the value-in-use For the year ended December 31, 2022, the Company had no individual customers which accounted for more than 10 percent of its revenue (December 31, 2021 - none). The following summary describes the operations of each of the Company’s reportable segments: • NAM generates revenue from manufacturing natural gas infrastructure under contract, refrigeration, processing, and electric power equipment, including custom and standard compression packages and modular natural gas processing equipment, refrigeration systems and water treatment services, in addition to generating revenue from mechanical services and parts, and maintenance solutions, and operating our compression assets under contract for oil and gas and midstream customers; • LATAM generates revenue from operating our Energy Infrastructure assets under take or pay contracts, providing after-market services, including parts and components, as well as operations, maintenance, and overhaul services; and • EH generates revenue by operating our Energy Infrastructure assets under take or pay contracts, manufacturing (focusing on large-scale process equipment), after-market services, including parts and components, as well as operations, maintenance, and overhaul services, and rentals of compression and processing equipment. The accounting policies of the reportable operating segments are the same as those described in the summary of significant accounting policies. The following tables provide certain financial information by geographic area. Revenues and Operating Income Years ended December 31, NAM LATAM EH Total 2022 2021 2022 2021 2022 2021 2022 2021 Segment revenue $ 1,303,885 $ 680,062 $ 221,628 $ 106,160 $ 349,247 $ 203,585 $ 1,874,760 $ 989,807 Intersegment revenue (93,778) (29,463) (434) (95) (2,750) (93) (96,962) (29,651) Revenue $ 1,210,107 $ 650,599 $ 221,194 $ 106,065 $ 346,497 $ 203,492 $ 1,777,798 $ 960,156 Revenue – Energy Infrastructure 141,900 103,096 129,723 66,069 109,464 109,488 381,087 278,653 Revenue – After-Market Services 298,333 215,876 38,057 24,158 107,270 87,342 443,660 327,376 Revenue – Engineered Systems 769,874 331,627 53,414 15,838 129,763 6,662 953,051 354,127 Operating income (loss) 1 $ 14,769 $ 18,041 $ (14,654) $ 6,575 $ 2,157 $ 29,675 $ 2,272 $ 54,291 1 Segment Assets NAM LATAM EH Total As at December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Segment assets $ 1,638,195 $ 1,547,005 $ 838,063 $ 214,340 $ 831,652 $ 440,629 $ 3,307,910 $ 2,201,974 Goodwill 1 224,992 242,804 89,264 85,622 365,121 237,844 679,377 566,270 Corporate - - - - - - 282,302 (576,802) Total segment assets $ 1,863,187 $ 1,789,809 $ 927,327 $ 299,962 $ 1,196,773 $ 678,473 $ 4,269,589 $ 2,191,442 1 , |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Subsequent Events | NOTE 36. SUBSEQUENT EVENTS Subsequent to December 31, 2022, Enerflex declared a quarterly dividend of $0.025 per share, payable on April 6, 2023, to shareholders of record on March 16, 2023. The Board will continue to evaluate dividend payments on a quarterly basis, based on the availability of cash flow, anticipated market conditions, and the general needs of the business. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Investments in Associates and Joint Ventures | (a) Investments in Associates and Joint Ventures Investments in associates and joint ventures are accounted for under the equity method. Under this method, the investment is carried on the consolidated statements of financial position at cost plus post-acquisition changes in the Company’s share of net assets of the associate or joint venture. The significant associates and joint ventures held by the Company are as follows: • 45 percent interest in Roska DBO Inc. (“Roska DBO”). • 65 percent interest in a joint venture in Brazil. The consolidated statements of earnings reflect the Company’s share of the results of operations of associates and joint ventures. Unrealized gains and losses resulting from transactions between the Company and associates are eliminated to the extent of the interest in the associate or joint venture. The Company’s share of profits from associates and joint ventures is shown on the face of the consolidated statements of earnings. This is the profit attributable to equity holders of the associates and joint venture partners and, therefore, is profit after tax and non-controlling |
Foreign Currency Translation | (b) Foreign Currency Translation In the accounts of individual subsidiaries, transactions in currencies other than the individual subsidiaries’ functional currency are recorded at the prevailing rate of exchange at the date of the transaction. At year-end, Non-monetary Non-monetary The assets and liabilities on the statements of financial position of foreign subsidiaries are translated into Canadian dollars at the rates of exchange prevailing at the reporting date. The statements of earnings of foreign subsidiaries are translated at average exchange rates for the reporting period. Exchange differences arising on the translation of net assets are taken to accumulated other comprehensive income. All foreign exchange gains and losses are taken to the consolidated statements of earnings with the exception of exchange differences arising on monetary assets and liabilities that form part of the Company’s net investment in subsidiaries. These are taken directly to other comprehensive income until the disposal of the foreign subsidiary at which time the unrealized gain or loss is recognized in the consolidated statements of earnings. On the disposal of a foreign subsidiary, accumulated exchange differences are recognized in the consolidated statements of earnings as a component of the gain or loss on disposal. |
Business Combinations | (c) Business Combinations Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value on the date of the acquisition. Acquisition costs incurred are expensed and included in selling and administrative expenses, except for those associated with the issuance of debt, which are included in the initial carrying amount of the liability. Results of operations of businesses acquired are included in the Company’s consolidated financial statements from the date of acquisition. |
Property, Plant and Equipment | (d) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Cost comprises the purchase price or construction cost and any costs directly attributable to making the asset capable of operating as intended. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of assets and commences when the assets are ready for intended use. Asset Class Estimated Useful Life Range Buildings 5 to 20 years Equipment 2 to 20 years Major renewals and improvements are capitalized when they are expected to provide future economic benefit. When significant components of property, plant and equipment are required to be replaced at intervals, the Company derecognizes the replaced part, and recognizes the new part with its own associated useful life and depreciation. No depreciation is charged on land or assets under construction. Repairs and maintenance costs are charged to operations as incurred. T he carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from derecognition of property, plant and equipment is included in the consolidated statements of earnings when the item is derecognized. Each asset’s estimated useful life, residual value, and method of depreciation ar |
Energy Infrastructure Assets | (e) Energy Infrastructure Assets Energy infrastructure assets are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are generally between five When the Company is responsible for major maintenance and overhauls, the actual overhaul cost is capitalized and depreciated over the estimated useful life of the overhaul, generally between two Each asset’s estimated useful life, residual value, and method of depreciation are reviewed and adjusted, if appropriate, at each year-end, |
Goodwill | (f) Goodwill Goodwill arising on an acquisition of a business is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed. Following initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill allocated to a group of cash-generating units (“CGUs”) is reviewed for impairment annually, or when there is an indication that a r |
Intangible Assets | (g) Intangible Assets Intangible assets are carried at cost less accumulated amortization and any accumulated impairment losses. Intangible assets with a finite life are amortized on a straight-line basis over Management’s best estimate of their expected useful lives. The amortization charge is included in selling and administrative expenses in the consolidated statements of earnings. The expected useful lives and amortization method are reviewed on an annual basis with any change in the useful life or pattern of consumption adjusted at year end. Intangible assets are tested for impairment whenever there is an indication that the asset may be impaired. Acquired identifiable intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives. Customer relationships, software, and other intangible assets have an estimated useful life range of three |
Impairment of Non-Financial Assets (excluding Goodwill) | (h) Impairment of Non-Financial At least annually, the Company reviews the carrying amounts of its tangible and intangible assets with finite lives to assess whether there is an indication that those assets may be impaired. If any such indication exists, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s fair value less costs to sell and its value-in-use. value-in-use, pre-tax If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. A corresponding impairment loss is recognized in the consolidated statements of earnings. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the original carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Any impairment reversal is recognized in the consolidated statements of earnings. |
Inventories | (i) Inventories Inventories are valued at the lower of cost and net realizable value. Serialized inventory is determined on a first-in, first-out Non-serialized Cost of equipment, repair and distribution parts, and direct materials, include purchase costs and costs incurred in bringing each product to its present location and condition. Cost of work-in-progress work-in-progress Cost of inventories includes the transfer from accumulated other comprehensive income of gains and losses on qualifying cash flow hedges in respect of the purchase of inventory. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. |
Trade Receivables | (j) Trade Receivables Trade receivables are recognized and carried at original invoice amount less an allowance for any amounts estimated to be uncollectible. The Company calculates an expected credit loss based on historical experience of bad debts and specific provisions created when there is objective evidence that the collection of the full amount of a receivable is no longer probable under the terms of the original invoice. The amount of this allowance represents Management’s best estimate of expected credit losses. Trade receivables are derecognized when they are assessed as uncollectible. |
Cash | (k) Cash Cash includes cash and cash equivalents, which are defined as highly liquid investments with original maturities of three months or less. |
Provisions | (l) Provisions Provisions are recognized when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
Onerous Contracts | (m) Onerous Contracts |
Employee Future Benefits | (n) Employee Future Benefits The Company sponsors various defined contribution pension plans, which cover substantially all employees and are funded in accordance with applicable plan and regulatory requirements. Regular contributions are made by the Company to the employees’ individual accounts, which are administered by a plan trustee, in accordance with the plan document. The actual cost of providing benefits through defined contribution pension and the 401(k) matched savings plans is charged to earnings in the period in respect of which contributions become payable. |
Share-Based Payments | (o) Share-Based Payments Equity-Settled Share-Based Payments The Company offers a Stock Option Plan to key employees, measured at the fair value of the equity instrument at the grant date. Details regarding the determination of the fair value of equity-settled share-based transactions are set out in Note 25. The fair value of equity-settled share-based payments is expensed over a five-year vesting period with a corresponding increase in equity. Stock options have a seven-year expiry and are exercisable at the designated common share price, which is determined by the average of the market price of the Company’s shares on the five days preceding the date of the grant. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. Cash-Settled Share-Based Payments The Company offers Deferred Share Unit (“DSU”), Performance Share Unit (“PSU”), Restricted Share Unit (“RSU”), and Cash Performance Target (“CPT”) plans to certain employees. The Company also offers the DSU plan to non-employee ing The Company also offers a Phantom Share Entitlement (“PSE”) plan to certain employees of affiliates located in Australia and the UAE. PSEs are measured at the fair value of the equity instrument at the grant date and expensed over a five-year vesting period and expire on the seventh anniversary. The exercise price of each PSE equals the average of the market price of the Company’s shares on the five days preceding the date of the grant. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with changes in fair value recognized in the consolidated statements of earnings. The award entitlements for increases in the share trading value of the Company are to be paid to the recipient in cash upon exercise. |
Leases | (p) Leases Company as a Lessee A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • The contract involves the use of an identified asset, either explicitly or implicitly, and whether the supplier has a substantive substitution right for the asset; • The Company has the right to obtain substantially all the economic benefits from the use of the asset throughout the period; and • The Company has the right to direct the use of the identified asset. The Company determines if a contractual arrangement is a lease at the inception of the contract term. The Company has identified leases for the following asset types: land and buildings (including manufacturing facilities, office space, and rental accommodations) and equipment (including vehicles, office equipment, and shop equipment). The Company recognizes a right-of-use The right-of-use right-of-use The lease liability is initially measured at the present value of remaining lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability include fixed payments, variable lease payments that depend on an index or rate, amounts expected to be payable under a residual value guarantee, and amounts owing under purchase or termination options, if the Company is reasonably certain to exercise these options. If the lease contains an extension option that the Company is reasonably certain to exercise, all payments in the renewal period are also included in determining the lease liability. The lease liability is measured at amortized cost using the effective interest method. The amount of the liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension, or termination option. When the lease liability is remeasured, a corresponding adjustment is made to the carrying value of the right-of-use right-of-use The Company has elected not to recognize right-of-use low-value non-lease right-of-use Company as a Lessor Leases in which the Company is the lessor are assessed upon commencement and are classified as either an operating lease or a finance lease. An operating lease does not transfer substantially all the risks and rewards of the leased asset to the customer. Lease payments from operating leases are recorded as income on a straight-line basis over the life of the lease. A finance lease exists when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. |
Revenue Recognition | (q) Revenue Recognition Revenue is recognized as the Company satisfies its performance obligations by transferring promised goods or services to customers, regardless of when payment is received. Revenue is measured at the amount of consideration to which the Company expects to be entitled, in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties, and may include fixed amounts, variable amounts, or both. Variable amounts are recorded using either the “expected value approach” or the “most likely outcome approach,” as determined upon initial recognition of the contract, and are reassessed at each reporting period. The expected value approach measures variable consideration by probability weighting all the potential outcomes. The most likely outcome approach measures variable consideration as Management’s best estimate of the variable component. In estimating variable consideration, the Company reviews any potential for returns, refunds, and other similar obligations. For contracts containing multiple performance obligations, the amount of consideration to which the Company expects to be entitled is allocated to individual performance obligations proportionately based on the stand-alone selling price. Energy Infrastructure Revenue from energy infrastructure assets is recognized in accordance with the terms of the relevant agreement with the customer on a straight-line basis over the term of the agreement. Payments are typically required on a monthly basis with no unusual payment terms. Certain rental contracts contain an option for the customer to purchase the assets at the end of the rental period. Should the customer exercise this option to purchase, revenue from the sale of the equipment is recognized directly in the consolidated statements of earnings. Revenue from contracts that have been classified as finance leases relating to existing or pre-owned a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised; c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred; d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications. At the commencement of these finance leases, the Company recognizes revenue and a finance lease receivable equal to the net investment in the lease. Finance income is recognized in Energy Infrastructure revenue reflecting a constant periodic rate of return on the Company’s net investment in the lease over the lease term. After-Market Services After-Market Services revenues include the sales of parts and equipment, as well as the servicing and maintenance of equipment. For the sale of parts and equipment, revenue is recognized when the transfer of control passes, which is typically at the point of shipping. For servicing and maintenance of equipment, revenue is recognized on a straight-line basis based on performance of the contracted-upon service. Revenue from long-term service contracts is recognized on a stage of completion basis proportionate to the service work that has been performed based on parts and labour service provided. Payments are typically required on a monthly basis or as work is performed, with no unusual payment terms. At the completion of the contract, any remaining profit on the contract is recognized as revenue. Any expected losses on such projects are charged to operations when determined. Long-term service contracts include scheduled milestone maintenance, corrective or crash maintenance, the supply of parts, and the operation of equipment. Engineered Systems Revenue from the supply of equipment systems – contracts typically involving engineering, design, manufacture, installation, and start-up percentage-of-completion For Engineered Systems contracts, the Company generally requires customers to pay based on milestones as manufacturing progresses. These milestones are generally structured to keep the Company cash flow-positive. Contracts are also generally structured to ensure the Company is made whole for costs incurred in the event of a cancellation. Revenue from contracts that have been classified as finance leases for newly manufactured equipment are recorded as Engineered Systems revenue. At the inception of a contract, all leases are classified as either an operating or finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Whether a lease is an operating or finance lease depends on the substance of the transaction rather than the form of the contract. Examples of situations, which typically would lead to a lease being classified as a finance lease include, but are not limited to: a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease term; b) the lessee has the option to purchase the underlying asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception date, that the option will be exercised; c) the lease term is for the major part of the economic life of the underlying asset even if title is not transferred; d) at the inception date, the present value of the lease payments amounts to at least substantially all of the fair value of the underlying asset; and e) the underlying asset is of such a specialised nature that only the lessee can use it without major modifications. Upon commencement of a new finance lease, the Company recognizes revenue, based on the fair value of the underlying assets, and cost of goods sold, determined to be the net book value of those assets, in the consolidated statements of earnings. The finance lease interest portion will be recognized in the Energy Infrastructure product line over the lease term. Engineered Systems projects are typically completed within a year; however, this timing can be impacted by both internal and external factors such as shop loading and customer delivery requests. Practical Expedients The Company has elected to use the practical expedients in IFRS 15 Revenue from contracts with customers |
Financial Instruments | (r) Financial Instruments Financial instruments are measured at fair value on initial recognition of the instrument, plus or minus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. For the purposes of measuring financial assets after initial recognition, the Company classifies financial assets as either amortized cost, fair value through other comprehensive income (“FVOCI”), or fair value through profit or loss (“FVTPL”), based on the contractual cash flow characteristics and the Company’s business model for managing the financial asset. For the purposes of measuring financial liabilities after initial recognition, the Company classifies all financial liabilities as amortized cost, except certain financial liabilities, such as derivatives, which are classified as FVTPL. Preferred shares included in Other assets were recorded at fair value at inception and are subsequently measured at amortized cost. The Company primarily applies the market approach for recurring fair value measurements. Three levels of inputs may be used to measure fair value: • Level 1: Fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities. Active markets are those in which transactions occur in sufficient frequency and volume to provide pricing information on an on-going • Level 2: Fair value measurements are those derived from inputs, other than quoted prices included in Level 1, that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and • Level 3: Fair value measurements are those derived from inputs for the asset or liability that are not based on observable market data (unobservable inputs). In these instances, internally developed methodologies are used to determine fair value. The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect placement within. The Company has made the following classifications: • Cash and cash equivalents are measured at fair value through profit or loss. Gains and losses resulting from the periodic revaluation are recorded in the consolidated statements of earnings; • Accounts receivable and preferred shares are recorded at amortized cost using the effective interest rate method; and • Accounts payable, accrued liabilities, and long-term debt are recorded at amortized cost using the effective interest rate method. |
Derivative Financial Instruments and Hedge Accounting | (s) Derivative Financial Instruments and Hedge Accounting The Company formally documents its risk management objectives and strategies to manage exposures to fluctuations in foreign currency exchange rates and interest rates. The risk management policy permits the use of certain derivative financial instruments, including forward foreign exchange contracts and interest rate swaps, to manage these fluctuations. The Company does not enter into derivative financial agreements for speculative purposes. Derivative financial instruments are measured at their fair value upon initial recognition and are remeasured to their fair value at the end of each reporting period. The fair value of quoted derivatives is equal to their positive or negative market value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. The Company elected to apply hedge accounting for foreign exchange forward contracts for anticipated transactions. These are designated as cash flow hedges. For cash flow hedges, fair value changes of the effective portion of the hedging instrument are recognized in accumulated other comprehensive income, net of taxes. The ineffective portion of the fair value changes is recognized in the consolidated statements of earnings. Amounts charged to accumulated other comprehensive income are reclassified to the consolidated statements of earnings when the hedged transaction affects the consolidated statements of earnings. The Company’s U.S. dollar-denominated long-term debt has been designated as a hedge of net investment in self-sustaining foreign operations. As a result, a portion of unrealized foreign exchange gains and losses on the U.S. dollar-denominated long-term debt are included in the cumulative translation account in other comprehensive income. |
Income Taxes | (t) Income Taxes Income tax expense represents the sum of current income tax and deferred tax. Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Taxable earnings differ from earnings as reported in the consolidated statements of earnings as it excludes temporary and permanent differences. The Company’s current tax assets and liabilities are calculated by using tax rates that have been enacted or substantively enacted at the reporting date. Deferred income tax is recognized on all temporary differences at the reporting date based on the difference between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit, with the following exceptions: • Where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss; • In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future; and • Deferred income tax assets are recognized only to the extent that it is probable that a taxable profit will be available against which the deductible temporary differences, carried forward tax credits, or tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax assets to be utilized. Unrecognized deferred income tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the asset is realized or the liability is settled, based on tax rates and tax laws enacted or substantively enacted at the reporting date. Current and deferred income taxes are charged or credited directly to equity if it relates to items that are credited or charged to equity in the same period. Otherwise, income tax is recognized in the consolidated statements of earnings. Income taxes non-monetary |
Earnings Per Share | (u) Earnings Per Share Basic earnings per share is calculated by dividing the net earnings for the period by the weighted average number of common shares outstanding during the period. |
Finance Income and Costs | (v) Finance Income and Costs Finance income comprises interest income on funds invested. Finance income is recognized as it accrues in profit or loss, using the effective interest rate method. |
Government Grants | (w) Government Grants |
Nature And Description Of The_2
Nature And Description Of The Company (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of nature and description of the company explanatory | The following table represents material subsidiaries of the Company as at December 31, 2022: Name Jurisdiction of Incorporation Ownership Operating Segment Enerflex Ltd. Canada Public Shareholders North America Enerflex International Holdings Ltd. Barbados 100.0 percent Eastern Hemisphere Enerflex Energy Systems Inc. Delaware, USA 100.0 percent North America Enerflex US Holdings Inc. 1 Delaware, USA 100.0 percent North America Exterran Energy Solutions, LP Delaware, USA 100.0 percent North America Enerflex Energy Systems (Australia) PTY Ltd. Australia 100.0 percent Eastern Hemisphere Enerflex Middle East LLC Oman 70.0 percent 2 Eastern Hemisphere Enerflex Middle East WLL 3 Bahrain 100.0 percent Eastern Hemisphere Enerflex Holding Company NL B.V. Netherlands 100.0 percent Eastern Hemisphere Exterran Middle East LLC Oman 100.0 percent Eastern Hemisphere 1 2 3 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business combinations [Abstract] | |
Summary of the identifiable assets acquired and liabilities | The following table provides a summary of the consideration and the identifiable assets acquired and liabilities assumed at the date of acquisition: October 13, 2022 Purchase consideration Shares exchanged $ 213,942 Fair value of vested stock-based compensation 1 8,641 Total purchase consideration $ 222,583 Identifiable assets acquired and liabilities assumed Net working capital 56,715 Property, plant, and equipment 60,395 Energy infrastructure assets 581,338 Contract assets 217,585 Finance leases receivables 77,578 Intangible assets 102,789 Other long-term assets 66,602 Long-term debt (1,019,436) Other long-term liabilities (60,408) Total net identifiable assets 83,158 Goodwill $ 139,425 1 |
Accounts Receivable And Contr_2
Accounts Receivable And Contract Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Accounts Receivables | Accounts receivable consisted of the following: December 31, 2022 Trade receivables $ 457,850 $ 213,815 Less: allowance for doubtful accounts (7,652) (10,334) Trade receivables, net $ 450,198 $ 203,481 Other receivables 6,380 8,725 Total accounts receivable $ 456,578 $ 212,206 |
Summary of Aging of Trade Receivables | Aging of trade receivables: December 31, 2022 Current to 90 days $ 405,196 $ 183,105 Over 90 days 52,654 30,710 $ 457,850 $ 213,815 |
Summary of Movement in Allowance For Doubtful Accounts | Movement in allowance for doubtful accounts: December 31, 2022 Balance, January 1 $ 10,334 $ 11,439 Impairment provision additions on receivables 628 275 Amounts settled and derecognized during the period (3,499) (1,317) Currency translation effects 189 (63) Closing balance $ 7,652 $ 10,334 |
Summary of Movement in Contract Assets | Movement in contract assets: December 31, 2022 Balance, January 1 $ 82,760 $ 66,722 Acquisition (Note 7) 281,509 - Unbilled revenue recognized 559,229 244,372 Amounts billed (517,828) (228,327) Currency translation effects 3,768 (7) Closing balance $ 409,438 $ 82,760 Current contract assets $ 186,259 $ 82,760 Non-current 223,179 - $ 409,438 $ 82,760 Amounts recognized as current contract assets are typically billed to customers within three months and amounts recognized as non-current |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary Of Detailed Information About Inventories | Inventories consisted of the following: December 31, 2022 Direct materials $ 107,575 $ 83,943 Repair and distribution parts 136,876 54,156 Work-in-progress 98,297 31,298 Equipment 26,550 3,290 Total inventories $ 369,298 $ 172,687 2022 2021 Work-in-progress $ 41,986 $ 36,169 |
Property, Plant And Equipment_2
Property, Plant And Equipment And Energy Infrastructure Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary Of Detailed Information About Property Plant And Equipment And Rental Equipment | Land Building Equipment Assets under Total property, plant and Energy Cost January 1, 2022 $ 18,411 $ 114,021 $ 64,492 $ 3,068 $ 199,992 $ 839,734 Acquisition (Note 7) 4,237 31,864 22,952 1,342 60,395 581,338 Additions - 6 2,001 6,036 8,043 107,797 Reclassification - 885 4,022 (5,314) (407) - Disposals (6) (1,100) (1,925) - (3,031) (23,233) Currency translation effects 917 5,724 (844) (547) 5,250 36,318 December 31, 2022 $ 23,559 $ 151,400 $ 90,698 $ 4,585 $ 270,242 $ 1,541,954 Accumulated depreciation January 1, 2022 $ - $ (50,087) $ (53,491) $ - $ (103,578) $ (229,406) Depreciation charge - (7,205) (8,352) - (15,557) (83,289) Impairment - - - - - (1,233) Disposals - 987 1,827 - 2,814 9,671 Currency translation effects - (2,361) 945 - (1,416) 12,641 December 31, 2022 $ - $ (58,666) $ (59,071) $ (117,737) $ (291,616) Net book value – December 31, 2022 $ 23,559 $ 92,734 $ 31,627 $ 4,585 $ 152,505 $ 1,250,338 Land Building Equipment Assets under Total property, plant and Energy infrastructure assets Cost January 1, 2021 $ 18,471 $ 112,179 $ 63,844 $ 4,050 $ 198,544 $ 881,684 Additions - - 831 4,323 5,154 52,187 Reclassification - 2,327 2,566 (5,297) (404) - Disposals - (66) (2,436) - (2,502) (82,304) Currency translation effects (60) (419) (313) (8) (800) (11,833) December 31, 2021 $ 18,411 $ 114,021 $ 64,492 $ 3,068 $ 199,992 $ 839,734 Accumulated depreciation January 1, 2021 $ - $ (44,334) $ (51,574) $ - $ (95,908) $ (243,870) Depreciation charge - (5,956) (4,451) - (10,407) (55,466) Impairment - - - - - (537) Disposals - 66 2,351 - 2,417 62,990 Currency translation effects - 137 183 - 320 7,477 December 31, 2021 $ - $ (50,087) $ (53,491) $ - $ (103,578) $ (229,406) Net book value – December 31, 2021 $ 18,411 $ 63,934 $ 11,001 $ 3,068 $ 96,414 $ 610,328 |
Lease Right-Of-Use Assets (Tabl
Lease Right-Of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary Of Detailed Information About Reconciliation Of Lease Right Of Use Assets | Land and buildings Equipment Total lease right-of-use assets Cost January 1, 2022 $ 58,380 $ 24,359 $ 82,739 Acquisition (Note 7) 31,192 1,240 32,432 Additions 7,173 4,029 11,202 Disposal (3,935) (6,129) (10,064) Currency translation effects 1,297 1,559 2,856 December 31, 2022 $ 94,107 $ 25,058 $ 119,165 Accumulated depreciation January 1, 2022 $ (20,198) $ (12,654) $ (32,852) Depreciation charge (9,994) (5,824) (15,818) Disposal 3,543 5,731 9,274 Currency translation effects (508) (889) (1,397) December 31, 2022 $ (27,157) $ (13,636) $ (40,793) Net book value – December 31, 2022 $ 66,950 $ 11,422 $ 78,372 Land and buildings Equipment Total lease right-of-use assets Cost January 1, 2021 $ 56,242 $ 19,360 $ 75,602 Additions 4,097 6,778 10,875 Disposal (1,644) (1,583) (3,227) Currency translation effects (315) (196) (511) December 31, 2021 $ 58,380 $ 24,359 $ 82,739 Accumulated depreciation January 1, 2021 $ (13,527) $ (7,891) $ (21,418) Depreciation charge (8,350) (5,492) (13,842) Disposal 1,535 714 2,249 Currency translation effects 144 15 159 December 31, 2021 $ (20,198) $ (12,654) $ (32,852) Net book value – December 31, 2021 $ 38,182 $ 11,705 $ 49,887 |
Finance Lease Receivable (Table
Finance Lease Receivable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Maturity Analysis of Finance Lease Receivable | The value of the finance lease receivable is comprised of the following: Minimum lease payments and unguaranteed Present value of minimum lease payments December 31, 2022 2021 2022 2021 Less than one year $ 73,614 $ 16,420 $ 60,020 $ 15,248 Between one and five years 196,314 64,739 149,052 49,546 Later than five years 144,482 62,827 85,432 38,564 $ 414,410 $ 143,986 $ 294,504 $ 103,358 Less: Unearned finance income (119,906) (40,628) - - $ 294,504 $ 103,358 $ 294,504 $ 103,358 |
Summary of Reconciliation of Finance Lease | December 31, 2022 2021 Balance, January 1 $ 103,358 $ 64,274 Acquisition (Note 7) 110,097 - Additions 86,602 40,154 Interest income 14,801 5,417 Billings and payments (33,740) (6,597) Currency translation effects 13,386 110 Closing balance $ 294,504 $ 103,358 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Detailed Information About Other Assets | December 31, 2022 2021 Investment in associates and joint ventures $ 34,977 $ 27,064 Long-term receivables 1 34,127 24,172 Prepaid deposits 13,972 79 Total other assets $ 83,076 $ 51,315 1 Included in long-term receivables are preferred shares in the amount of $28.0 million (December 31, 202 1 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Detailed Information About Intangible Assets | Customer and other Software Total intangible Cost January 1, 2022 $ 69,594 $ 49,069 $ 118,663 Acquisition (Note 7) 80,514 22,275 102,789 Disposal - (11) (11) Reclassification - 407 407 Currency translation effects 1,202 2,563 3,765 December 31, 2022 $ 151,310 $ 74,303 $ 225,613 Accumulated amortization January 1, 202 2 $ (63,817) $ (44,728) $ (108,545) Amortization charge (7,239) (2,198) (9,437) Disposal - 11 11 Currency translation effects (2,371) (2,498) (4,869) December 31, 2022 $ (73,427) $ (49,413) $ (122,840) Net book value – December 31, 2022 $ 77,883 $ 24,890 $ 102,773 Customer and other Software Total intangible Cost January 1, 2021 $ 69,824 $ 48,698 $ 118,522 Reclassification - 404 404 Currency translation effects (230) (33) (263) December 31, 2021 $ 69,594 $ 49,069 $ 118,663 Accumulated amortization January 1, 2021 $ (59,296) $ (42,682) $ (101,978) Amortization charge (4,642) (2,079) (6,721) Currency translation effects 121 33 154 December 31, 2021 $ (63,817) $ (44,728) $ (108,545) Net book value – Decembe $ 5,777 $ 4,341 $ 10,118 |
Goodwill and Impairment Revie_2
Goodwill and Impairment Review of Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary Of Detailed Information About Goodwill | December 31, 2022 2021 Balance, January 1 $ 566,270 $ 576,028 Acquisition (Note 7) 139,425 - Impairment (48,000) - Currency translation effects 21,682 (9,758) Closing balance $ 679,377 $ 566,270 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Detailed Information About Accounts Payable and Accrued Liabilities | December 31, 2022 2021 Accounts payable and accrued liabilities $ 610,579 $ 234,212 Accrued dividend payable 3,093 2,242 Cash-settled share-based payments 13,477 4,293 Total accounts payable and accrued liabilities $ 627,149 $ 240,747 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Classes of other provisions [abstract] | |
Summary of other provisions | December 31, 2022 2021 Warranty provision $ 13,411 $ 6,636 Legal provision 3,406 - Restructuring provision 2,009 - Total provisions $ 18,826 $ 6,636 |
Summary of tabular form of movement in provisions | 2022 Warranty Provision Legal Provision Restructuring Provision Total Balance, January 1 $ 6,636 $ - $ - $ 6,636 Acquisition (Note 7) 5,888 2,691 - 8,579 Additions during the year 4,395 717 2,009 7,121 Amounts settled and released in the year (3,669) - - (3,669) Currency translation effects 161 (2) - 159 Closing balance $ 13,411 $ 3,406 $ 2,009 $ 18,826 2021 Warranty Provision Legal Provision Restructuring Provision Total Balance, January 1 $ 10,549 $ - $ - $ 10,549 Additions during the year 849 - - 849 Amounts settled and released in the year (4,681) - - (4,681) Currency translation effects (81) - - (81) Closing balance $ 6,636 $ - $ - $ 6,636 |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Detailed Information About Deferred Revenue [Abstract] | |
Summary of detailed information about deferred revenue | December 2022 2021 Balance, January 1 $ 84,614 $ 35,409 Acquisition (Note 7) 135,409 - Cash received in advance of revenue recognition 526,924 167,956 Revenue subsequently recognized (354,531) (118,438) Currency translation effects 7,104 (313) Closing balance $ 399,520 $ 84,614 Current deferred revenues $ 366,085 $ 84,614 Non-current 33,435 - $ 399,520 $ 84,614 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings [abstract] | |
Summary of borrowings | The composition of the borrowings on the Revolving Credit Facility, Term Loan, and the Company’s Notes were as follows: December 31 2022 2021 Drawings on the Revolving Credit Facility $ 459,202 $ - Drawings on the Term Loan (US$150,000) 203,160 - Notes due October 15, 20 2 846,500 - Drawings on the Bank Facility - 30,522 Drawings on the Asset-Based Facility - 37,411 Notes due December 15, 2024 - 148,119 Notes due December 15, 2027 - 118,746 Deferred transaction costs and Notes discount (118,537) (3,376) $ 1,390,325 $ 331,422 Current portion of long-term debt $ 27,088 $ - Non-current 1,363,237 331,422 $ 1,390,325 $ 331,422 |
Lease Liabilities - (Tables)
Lease Liabilities - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of quantitative information about leases for lessee [abstract] | |
Summary of lease liabilites | December 31, 2022 2021 Balance, January 1 $ 57,014 $ 61,926 Acquisition (Note 7) 39,845 - Additions 9,977 9,721 Lease interest 3,398 3,029 Payments made against lease liabilities (19,156) (17,244) Currency translation effects and other 1,955 (418) Closing balance $ 93,033 $ 57,014 Current portion of lease liabilities $ 20,125 $ 13,906 Non-current 72,908 43,108 $ 93,033 $ 57,014 |
Summary of Future minimum lease payments under non-cancellable leases were as follows | Future minimum lease payments under non-cancellable December 31, 2022 2023 $ 23,776 2024 18,427 2025 15,493 2026 12,173 2027 9,848 Thereafter 32,287 $ 112,004 Less: Imputed interest 18,811 Short-term leases 156 Low-value 4 $ 93,033 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Disclosure of components of income tax expense [Table Text Block] | The components of income tax expense were as follows: Years ended December 31, 2022 2021 Current income taxes $ 17,945 $ 13,135 Deferred income taxes 3,265 43,422 $ 21,210 $ 56,557 |
Disclosure of Reconciliation of Tax Expense Explanatory [Table Text Block] | The provision for income taxes differs from that which would be expected by applying Canadian statutory rates. A reconciliation of the difference is as follows: Years ended December 31, 2022 2021 Earnings before income taxes $ (79,733) $ 38,102 Canadian statutory rate 23.4% 23.8% Expected income tax provision $ (18,658) $ 9,068 Add (deduct): Change in unrecognized deferred tax asset 27,664 44,704 Impairment of goodwill 11,232 - Exchange rate effects on tax basis (2,223) (2,269) Earnings taxed in foreign jurisdictions 543 2,313 Revaluation of Canadian deferred tax assets due to change in statutory rate - (660) Withholding tax on dividends received from foreign subsidiaries - 2,763 Amounts not deductible (taxable) for tax purposes 4,373 811 Impact of accounting for associates and joint ventures (1,104) (160) Other (617) (13) Income tax expense from continuing operations $ 21,210 $ 56,557 |
Disclosure of IncomeTax Relating To Components Of Other Comprehensive Income Explanantory | Years ended December 31, 2022 2021 Deferred Tax Arising on income and expenses recognized in other comprehensive income: Fair value remeasurement of hedging instruments entered into for cash flow hedges $ (55) $ 77 Arising on income and expenses reclassified from other comprehensive income to net earnings: Relating to cash flow hedges 59 (53) Total income tax recognized in other comprehensive income $ 4 $ 24 |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | Deferred tax assets and liabilities arise from the following: Accounting provisions and accruals Tax losses Long-term assets Other Exchange rate effects on tax bases Cash flow hedges Total 1 January 1, 2022 $ 7,022 $ 6,519 $ (86,255) $ 511 $ (10,476) $ - $ (82,679) Acquisition (Note 7) 756 49,513 (30,308) - (6,538) - 13,423 Charged to net earnings (7,467) 1,325 1,022 - 1,858 (4) (3,266) Charged to OCI - - - - - 4 4 Exchange differences 51 (860) (2,511) (511) (613) - (4,444) December 31, 2022 $ 362 $ 56,497 $ (118,052) - $ (15,769) - $ (76,962) 1 Accounting provisions and accruals Tax losses Long-term Other Exchange on tax bases Cash flow Total 1 January 1, 2021 $ 18,058 $ 28,969 $ (73,956) $ 544 $ (12,799) $ (8) $ (39,192) Charged to net earnings (10,945) (21,808) (12,398) (572) 2,269 32 (43,422) Charged to OCI - - - - - (24) (24) Exchange differences (91) (642) 99 539 54 (41) December 31, 2021 $ 7,022 $ 6,519 $ (86,255) $ 511 $ (10,476) $ - $ (82,679) 1 |
Disclosure of Deductible temporary differences of income tax Expenses [Table Text Block] | The deductible temporary differences consist of: Years ended December 31, 2022 2021 Canadian: Tax losses $ 215,703 $ 138,408 Long-term assets 23,896 22,758 Accounting provisions and other accruals 29,143 26,363 Foreign 1 Tax losses 2,089,604 38,374 Long-term assets (59,931) - Accounting provisions and other accruals (126,117) - $ 2,172,298 $ 225,903 1 . |
Share Capital Authorized (Table
Share Capital Authorized (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | |
Summary of Issues and Outsatnding | Issued and Outstanding 2022 2021 December 31, Number of common shares Common Number of common shares Common Balance, January 1 89,678,845 $ 375,524 89,678,845 $ 375,524 Issued on Acquisition (Note 7) 34,013,055 213,942 - - Exercise of stock options 47,120 361 - - Closing balance 123,739,020 $ 589,827 89,678,845 $ 375,524 |
Contributed Surplus (Tables)
Contributed Surplus (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Contribution surplus [Abstract] | |
Summary of Contribution surplus | Contributed surplus consists of accumulated stock option expense less the fair value of the options at the grant date that have been exercised and reclassified to share capital. Changes in contributed surplus were as follows: December 31, 2022 2021 Balance, January 1 $ 658,615 $ 656,832 Share-based compensation 1,558 1,783 Exercise of stock options (101 ) - Closing balance $ 660,072 $ 658,615 |
Revenue - (Tables)
Revenue - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Disclosure of disaggregation of revenue from contracts with customers [text block] | Years ended December 31, 2022 2021 Energy Infrastructure 1,2 $ 381,087 $ 278,653 After-Market Services 443,660 327,376 Engineered Systems 953,051 354,127 Total revenue $ 1,777,798 $ 960,156 1 2 Revenue by geographic location, which is attributed by destination of sale, was as follows: Years ended December 31, 2022 2021 United States $ 890,899 $ 451,675 Canada 261,865 173,181 Oman 119,906 84,486 Bahrain 85,540 40,361 Argentina 80,524 34,321 Australia 65,618 61,520 Mexico 64,325 27,355 Brazil 45,367 17,289 Iraq 25,917 - Colombia 21,278 17,795 United Arab Emirates 20,995 2,494 Egypt 20,319 7,323 Other 75,245 42,356 Total revenue $ 1,777,798 $ 960,156 |
Disclosure of performance obligations [text block] | The following table outlines the Company’s unsatisfied performance obligations, by product line, as at December 31, 2022: Less than one year One to two years Greater than two years Total Energy Infrastructure $ 550,009 $ 492,096 $ 1,826,923 $ 2,869,028 After-Market Services 76,260 26,176 49,583 152,019 Engineered Systems 1,483,773 22,097 - 1,505,870 $ 2,110,042 $ 540,369 $ 1,876,506 $ 4,526,917 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Share-based Compensation Expenses | The share-based compensation expense included in the determination of net earnings was: Years ended December 31, 2022 2021 Equity settled share-based payments $ 1,558 $ 1,783 Deferred share units 3,622 3,053 Phantom share entitlement plan 117 102 Performance share units 4,172 3,470 Restricted share units 4,454 2,751 Cash performance target 2,239 1,778 Share-based compensation expense $ 16,162 $ 12,937 |
Summary of Equity-Settled Share-Based Payments | (b) Equity-Settled Share-Based Payments 2022 2021 Number of options Weighted average exercise price Number of Weighted Options outstanding, beginning of period 4,456,444 $ 11.66 4,057,142 $ 12.78 Granted - - 654,847 7.85 Exercised 1 (47,120) 5.51 - - Forfeited (27,286) 13.51 (24,267) 9.25 Expired (1,292,809) 13.98 (231,278) 20.75 Options outstanding, end of period 3,089,229 $ 10.77 4,456,444 $ 11.66 Options exercisable, end of period 1,671,421 $ 12.48 2,445,230 $ 13.62 1 |
Summary of Options Outstanding and Exercisable | The following table summarizes options outstanding and exercisable at December 31, 2022: Options Outstanding Options Exercisable Range of exercise prices Number Weighted Weighted average exercise price Number Weighted Weighted average exercise price $5.51 – $6.68 783,880 4.62 $ 5.51 286,552 4.62 $ 5.51 $6.69 – $13.51 1,072,991 4.30 9.81 460,251 2.95 11.48 $13.52 – $16.12 1,232,358 2.86 14.95 924,618 2.70 15.14 Total 3,089,229 3.81 $ 10.77 1,671,421 3.10 $ 12.48 |
Deferred share units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Share Units | Number of DSUs Weighted average grant date fair value per unit DSUs outstanding, January 1, 2022 1,406,170 $ 10.51 Granted 307,037 7.12 In lieu of dividends 20,806 6.86 Vested (108,500) 5.45 DSUs outstanding, December 31, 2022 1,625,513 $ 10.16 |
Phantom Share Entitlement Plan [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Share Units | Number of PSEs Weighted average grant PSEs outstanding, January 1, 2022 222,920 $ 12.15 Expired (22,669) 11.69 PSEs outstanding, December 31, 2022 200,251 $ 12.21 |
Performance share units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Share Units | Number of PSUs Weighted average grant PSUs outstanding, January 1, 2022 1,308,416 $ 9.02 Granted 634,382 6.29 In lieu of dividends 17,835 6.93 Vested (318,887) 6.10 PSUs outstanding, December 31, 2022 1,641,746 $ 8.51 |
Restricted share units [member] | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Summary of Share Units | Number of RSUs Weighted average grant RSUs outstanding, January 1, 2022 896,474 $ 7.62 Granted 995,336 6.29 Acquisition (Note 7) 572,260 6.29 In lieu of dividends 11,344 6.98 Vested (394,537) 6.15 Forfeited (79,044) 6.73 RSUs outstanding, December 31, 2022 2,001,833 $ 6.90 |
Retirement Benefits Plan (Table
Retirement Benefits Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of defined contribution plans | Years ended December 31, 2022 2021 Defined contribution plans $ 5,169 $ 4,567 401(k) matched savings plan 4,110 3,025 Net pension expense $ 9,279 $ 7,592 |
Finance Costs And Income (Table
Finance Costs And Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of finance costs and Iincome Explanatory | Years ended December 31, 2022 2021 Finance Costs Short and long-term borrowings 1 $ 46,009 $ 17,252 Interest on lease liability 3,398 3,029 Total finance costs $ 49,407 $ 20,281 Finance Income Interest income $ 10,484 $ 3,286 Net finance costs $ 38,923 $ 16,995 1 |
Reconciliation of Earnings Pe_2
Reconciliation of Earnings Per Share Calculations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Reconciliation of earnings per share calculations | Year ended December 31, 2022 Net loss Weighted average Per share Basic $ (100,943 ) 97,045,917 $ (1.04 ) Dilutive effect of stock option conversion - - - Diluted $ (100,943 ) 97,045,917 $ (1.04 ) Year ended December 31, 2021 Net loss Weighted average Per share Basic $ (18,455 ) 89,678,845 $ (0.21 ) Dilutive effect of stock option conversion - - - Diluted $ (18,455 ) 89,678,845 $ (0.21 ) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | |
Summary of detailed information about financial instruments | The Company has designated its financial instruments as follows: December 31, 2022 Carrying value Estimated fair value Financial Assets Cash and cash equivalents $ 253,776 $ 253,776 Derivative instruments in designated hedge accounting relationships 901 901 Loans and receivables: Accounts receivable 456,578 456,578 Preferred shares receivable 27,954 28,702 Financial Liabilities Derivative instruments in designated hedge accounting relationships 977 977 Other financial liabilities: Accounts payable and accrued liabilities 627,149 627,149 Long-term debt – Revolving Credit Facility 459,202 459,202 Long-term debt – Term Loan 203,160 203,160 Long-term debt – Notes 846,500 869,288 Other long-term liabilities 21,757 21,757 December 31, 2021 Carrying value Estimated fair value Financial Assets Cash and cash equivalents $ 172,758 $ 172,758 Derivative instruments in designated hedge accounting relationships 294 294 Loans and receivables: Accounts receivable 212,206 212,206 Preferred shares receivables 24,172 27,471 Financial Liabilities Derivative instruments in designated hedge accounting relationships 180 180 Other financial liabilities: Accounts payable and accrued liabilities 240,747 240,747 Long-term debt – Bank Facility 30,522 30,522 Long-term debt – Asset-Based Facility 37,411 37,411 Long-term debt – Notes 266,865 280,295 Other long-term liabilities 15,785 15,785 |
Summary of fair value measurement of financial assets and financial liabilities | Carrying Fair Value Level 1 Level 2 Level 3 Financial Assets Derivative financial instruments $ 901 $ - $ 901 $ - Preferred shares receivable $ 27,954 $ - $ 28,702 $ - Financial Liabilities Derivative financial instruments $ 977 $ - $ 977 $ - Long-term debt – Notes $ 846,500 $ - $ 869,288 $ - |
Summary of detailed information about hedging instruments | The following table summarizes the Company’s commitments to buy and sell foreign currencies as at December 31, 2022: Notional amount Maturity Canadian Dollar Denominated Contracts Purchase contracts USD $ 29,182 January 2023 – November 2023 Sales contracts USD (26,180) January 2023 – November 2023 Purchase contracts EUR 3,568 January 2023 – March 2023 Sales contracts EUR (2,453) March 2023 |
Summary of earnings before tax due to weakening of foreign currency | Canadian dollar weakens by five percent USD AUD BRL Earnings from foreign operations Earnings before income taxes $ 4,024 $ (113) $ 216 |
Summary of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities | The following table shows the Company’s sensitivity to a five percent weakening of the Canadian dollar against the U.S. dollar, Australian dollar, and Brazilian real. A five percent strengthening of the Canadian dollar would have an equal and opposite effect. This sensitivity analysis relates to the position as at December 31, 2022 and for the year then ended. Canadian dollar weakens by five percent USD AUD BRL Financial instruments held in foreign operations Other comprehensive income $ 17,625 $ 634 $ 342 Financial instruments held in Canadian operations Earnings before income taxes $ (23,450 ) $ - $ - |
Summary of maturity analysis for derivative and non derivative financial liabilities | A liquidity analysis of the Company’s financial instruments has been completed on a maturity basis. The following table outlines the cash flows, including interest associated with the maturity of the Company’s financial liabilities, as at December 31, 2022: Less than 3 months 3 months to 1 year Greater than 1 year Total Derivative financial instruments Foreign currency forward contracts $ 712 $ 265 $ - $ 977 Accounts payable and accrued liabilities 627,149 - - 627,149 Long-term debt – Revolving Credit Facility - - 459,202 459,202 Long-term debt – Term Loan - 27,088 176,072 203,160 Long-term debt – Notes - - 846,500 846,500 Other long-term liabilities - - 21,757 21,757 |
Capital Disclosures (Tables)
Capital Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Disclosure of Reconciliation of Net debt to EBITDA ratio [Table Text Block] | Net debt to EBITDA is defined as short and long-term debt less cash and cash equivalents at the end of the period, divided by annualized EBITDA. At December 31, 2022, the net debt to EBITDA ratio was: Years ended December 31, 2022 2021 Long-term debt $ 1,390,325 $ 331,422 Cash and cash equivalents (253,776) (172,758) Net debt $ 1,136,549 $ 158,664 Earnings before finance costs and income taxes $ (40,810) $ 55,097 Depreciation and amortization 128,287 87,622 EBITDA $ 87,477 $ 142,719 Net debt to EBITDA ratio 12.99:1 1.11:1 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Disclosure of Net Change In Non Cash Working Capital And Other | Years ended December 31, 2022 2021 Net change in working capital and other 1 Accounts receivable $ (56,861) $ 1,169 Contract assets (45,169) (16,038) Inventories (78,697) 39,564 Work-in-progress (5,817) (36,169) Finance leases receivable (81,049) (39,084) Income taxes receivable 3,097 19,986 Prepayments (35,198) (4,806) Accounts payable and accrued liabilities and provisions 2 77,875 50,510 Income taxes payable (11,042) 4,931 Deferred revenue 179,497 49,205 Foreign currency and other (17,954) 13,669 $ (71,318) $ 82,937 1 2 Cash interest and taxes paid and received during the period: Years ended December 31, 2022 2021 Interest paid – short- and long-term borrowings $ 29,640 $ 17,315 Interest paid – lease liabilities 3,398 3,029 Total interest paid $ 33,038 $ 20,344 Interest received 1,269 454 Taxes paid 27,813 13,725 Taxes received 5,399 23,137 |
Disclosure of reconciliation of liabilities arising from financing activities [text block] | Changes in liabilities arising from financing activities during the period: Years ended December 31, 2022 2021 Long-term debt, opening balance $ 331,422 $ 389,712 Debt assumed on Acquisition (Note 7) 1,022,112 - Changes from financing cash flows 90,973 (56,975) The effect of changes in foreign exchange rates (4,099) (406) Amortization of deferred transaction costs 4,046 1,186 Accretion of Notes discount 2,070 - Debt transaction costs (56,199) (2,095) Long-term debt, closing balance $ 1,390,325 $ 331,422 |
Guarantees,Commitments,And Cont
Guarantees,Commitments,And Contingencies (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of Companys purchase obligations of future period [Abstract] | |
Summary of Companys purchase obligations of future period | The Company has purchase obligations over the next three years as follows: 2023 $ 775,339 2024 19,306 2025 1,005 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of Remuneration of Directors and Other Key Management Personnel | Remuneration of directors and executive management is determined by the Board having consideration of overall performance of individuals and market trends. Information on key management compensation is shown below: Years ended December 31, 2022 2021 Salaries, Director fees and other short-term benefits $ 6,350 $ 5,711 Post-employment compensation 1 721 580 Share-based payments 8,315 6,979 1 |
Summary of Financial Statement Impacts of all Transactions with Related Parties | A summary of the financial statement impacts of all transactions with all related parties is as follows: Years ended December 31, 2022 2021 Associate – Roska DBO Revenue $ 1,755 $ 352 Purchases 4 - Accounts receivable 22 128 All related party transactions are settled in cash. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Summary of detailed information about geographical areas | The following tables provide certain financial information by geographic area. Revenues and Operating Income Years ended December 31, NAM LATAM EH Total 2022 2021 2022 2021 2022 2021 2022 2021 Segment revenue $ 1,303,885 $ 680,062 $ 221,628 $ 106,160 $ 349,247 $ 203,585 $ 1,874,760 $ 989,807 Intersegment revenue (93,778) (29,463) (434) (95) (2,750) (93) (96,962) (29,651) Revenue $ 1,210,107 $ 650,599 $ 221,194 $ 106,065 $ 346,497 $ 203,492 $ 1,777,798 $ 960,156 Revenue – Energy Infrastructure 141,900 103,096 129,723 66,069 109,464 109,488 381,087 278,653 Revenue – After-Market Services 298,333 215,876 38,057 24,158 107,270 87,342 443,660 327,376 Revenue – Engineered Systems 769,874 331,627 53,414 15,838 129,763 6,662 953,051 354,127 Operating income (loss) 1 $ 14,769 $ 18,041 $ (14,654) $ 6,575 $ 2,157 $ 29,675 $ 2,272 $ 54,291 1 Segment Assets NAM LATAM EH Total As at December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Segment assets $ 1,638,195 $ 1,547,005 $ 838,063 $ 214,340 $ 831,652 $ 440,629 $ 3,307,910 $ 2,201,974 Goodwill 1 224,992 242,804 89,264 85,622 365,121 237,844 679,377 566,270 Corporate - - - - - - 282,302 (576,802) Total segment assets $ 1,863,187 $ 1,789,809 $ 927,327 $ 299,962 $ 1,196,773 $ 678,473 $ 4,269,589 $ 2,191,442 1 , |
Nature And Description Of The_3
Nature And Description Of The Company - Summary of Nature And Description Of The Company (Detail) | 12 Months Ended | |
Dec. 31, 2022 | ||
CANADA | Parent [member] | Enerflex Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Name | Enerflex Ltd. | |
UNITED STATES | Subsidiaries [member] | Enerflex Energy Systems Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Ownership | 100% | |
Name of subsidiary | Enerflex Energy Systems Inc. | |
UNITED STATES | Subsidiaries [member] | Exterran Energy Solutions LP [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Delaware, USA | |
Ownership | 100% | |
Name of subsidiary | Exterran Energy Solutions, LP | |
UNITED STATES | Subsidiaries [member] | Enerflex US Holdings Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Delaware, USA | |
Ownership | 100% | |
Name of subsidiary | Enerflex US Holdings Inc. | [1] |
OMAN | Subsidiaries [member] | Enerflex Middle East LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Oman | |
Ownership | 70% | |
Name of subsidiary | Enerflex Middle East LLC | |
OMAN | Subsidiaries [member] | Exterran Middle East LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Oman | |
Ownership | 100% | |
Name of subsidiary | Exterran Middle East LLC | |
NETHERLANDS | Subsidiaries [member] | Enerflex Holding Company NL BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Netherlands | |
Ownership | 100% | |
Name of subsidiary | Enerflex Holding Company NL B.V. | |
AUSTRALIA | Subsidiaries [member] | Enerflex Energy Systems Australia PTY Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Australia | |
Ownership | 100% | |
Name of subsidiary | Enerflex Energy Systems (Australia) PTY Ltd. | |
BARBADOS | Subsidiaries [member] | Enerflex International Holdings Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Barbados | |
Ownership | 100% | |
Name of subsidiary | Enerflex International Holdings Ltd. | |
BAHRAIN | Subsidiaries [member] | Enerflex Middle East SPC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Bahrain | |
Ownership | 100% | |
Name of subsidiary | Enerflex Middle East WLL | [2] |
Operating segments [member] | CANADA | Parent [member] | Enerflex Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Canada | |
Ownership | Public Shareholders | |
Operating Segment | North America | |
Operating segments [member] | UNITED STATES | Subsidiaries [member] | Enerflex Energy Systems Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Jurisdiction of Incorporation | Delaware, USA | |
Operating Segment | North America | |
Operating segments [member] | UNITED STATES | Subsidiaries [member] | Exterran Energy Solutions LP [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | North America | |
Operating segments [member] | UNITED STATES | Subsidiaries [member] | Enerflex US Holdings Inc [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | North America | |
Operating segments [member] | OMAN | Subsidiaries [member] | Enerflex Middle East LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
Operating segments [member] | OMAN | Subsidiaries [member] | Exterran Middle East LLC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
Operating segments [member] | NETHERLANDS | Subsidiaries [member] | Enerflex Holding Company NL BV [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
Operating segments [member] | AUSTRALIA | Subsidiaries [member] | Enerflex Energy Systems Australia PTY Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
Operating segments [member] | BARBADOS | Subsidiaries [member] | Enerflex International Holdings Ltd [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
Operating segments [member] | BAHRAIN | Subsidiaries [member] | Enerflex Middle East SPC [Member] | ||
Disclosure of subsidiaries [line items] | ||
Operating Segment | Eastern Hemisphere | |
[1]Formerly named Exterran Corporation.[2]Formerly named Enerflex Middle East SPC. |
Nature And Description Of The_4
Nature And Description Of The Company - Summary of Nature And Description Of The Company (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Subsidiaries [member] | Enerflex Middle East LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Proportion of indirect ownership interest in subsidiary | 100% |
Nature And Description Of The_5
Nature And Description Of The Company - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / Employees $ / Segments | |
Disclosure of subsidiaries [line items] | |
Address of entity registered office | 904, 1331 Macleod Trail SE, Calgary, Alberta, Canada |
Number of employees | $ / Employees | 5,000 |
Number of operating segments | $ / Segments | 3 |
Basis Of Presentation - Additio
Basis Of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Statements [Line Items] | |
Date of authorisation for issue of financial statements | Mar. 01, 2023 |
Description of presentation currency | Canadian dollars |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Summary of Property, Plant And Equipment (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated Useful Life Range | 5 years |
Bottom of range [member] | Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated Useful Life Range | 2 years |
Top of range [member] | Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated Useful Life Range | 20 years |
Top of range [member] | Equipment [Member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated Useful Life Range | 20 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Options Equity Settled Share Based Payments [Member] | |
Statements [Line Items] | |
Description of vesting requirements for share based payment arrangement | over a five-year |
Description of maximum term of options granted for share based payment arrangement | seven-year |
Number of days proceeding the date of the grant | 5 days |
Phantom Share Entitlement [Member] | |
Statements [Line Items] | |
Description of vesting requirements for share based payment arrangement | over a five-year |
Description of maximum term of options granted for share based payment arrangement | seventh anniversary |
Number of days proceeding the date of the grant | 5 days |
Bottom of range [member] | |
Statements [Line Items] | |
Rental equipment useful life | 5 years |
Estimated useful life of the overhaul | 2 years |
Useful life measured as period of time, Intangible assets other than goodwill | 3 years |
Top of range [member] | |
Statements [Line Items] | |
Rental equipment useful life | 20 years |
Estimated useful life of the overhaul | 5 years |
Useful life measured as period of time, Intangible assets other than goodwill | 12 years |
Joint ventures [member] | |
Statements [Line Items] | |
Proportion of ownership interest in joint venture | 65% |
Roska DBO [Member] | |
Statements [Line Items] | |
Proportion of ownership interest in associate | 45% |
Acquisition - Summary of the Id
Acquisition - Summary of the Identifiable Assets Acquired and Liabilities (Detail) $ in Thousands | Oct. 13, 2022 CAD ($) | |
Share consideration | ||
Shares exchanged | $ 213,942 | |
Fair value of vested stock-based compensation | 8,641 | [1] |
Total purchase consideration | 222,583 | |
Identifiable Assets Acquired and Liabilities Assumed | ||
Net working capital | 56,715 | |
Property, plant and equipment | 60,395 | |
Energy infrastructure assets | 581,338 | |
Contract assets | 217,585 | |
Finance leases receivables | 77,578 | |
Intangible assets | 102,789 | |
Other long-term assets | 66,602 | |
Long-term debt | (1,019,436) | |
Other long-term liabilities | (60,408) | |
Total net identifiable assets | 83,158 | |
Goodwill | $ 139,425 | |
[1]Included in the fair value of vested stock-based compensation is $1.9 million of cash payments to Exterran stockholders that held fractional shares on the date of acquisition. |
Acquisition - Summary of the _2
Acquisition - Summary of the Identifiable Assets Acquired and Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 13, 2022 | Oct. 12, 2022 |
Exterran Corporation [Member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash transferred | $ 1.9 | $ 1.9 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) $ in Thousands, shares in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 01, 2022 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 CAD ($) | Oct. 13, 2022 CAD ($) | Oct. 12, 2022 CAD ($) shares | Oct. 12, 2022 $ / shares | ||
Disclosure of detailed information about business combination [line items] | |||||||
Number of instruments or interests issued or issuable | shares | 34,013,055 | ||||||
Consideration transferred, acquisition-date fair value | $ 222,583 | ||||||
Fair Value Of Vested Share Based Compensation Transferred | [1] | 8,641 | |||||
Trade and other receivables recognised as of acquisition date | $ 187,500 | $ 187,500 | |||||
Business combination, acquired receivables, gross contractual amount | 222,000 | 222,000 | |||||
Business combination, acquired receivables, estimated uncollectible | 34,500 | 34,500 | |||||
Revenues for the acquired business | $ 789,300 | 196,000 | |||||
Net loss for the acquired business | $ 48,600 | $ 60,700 | |||||
Amounts Recognised For Transaction Recognised Separately From Acquisition Of Assets And Assumption Of Liabilities In Business Combination | $ 70,600 | ||||||
Exterran Corporation | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Customer-related intangible assets recognised as of acquisition date | $ 50,900 | ||||||
Cash transferred | $ 1,900 | 1,900 | |||||
Consideration transferred, acquisition-date fair value | 222,600 | ||||||
Equity interests of acquirer | 213,900 | ||||||
Share price | $ / shares | $ 6.29 | ||||||
Fair Value Of Vested Share Based Compensation Transferred | $ 8,600 | ||||||
Enerflex common shares | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Number of instruments or interests issued or issuable | shares | 34,013,055 | ||||||
Enerflex common shares | Exterran Corporation | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Conversion of common shares in business combination | 1.021% | 1.021% | |||||
[1]Included in the fair value of vested stock-based compensation is $1.9 million of cash payments to Exterran stockholders that held fractional shares on the date of acquisition. |
Accounts Receivable And Contr_3
Accounts Receivable And Contract Assets - Summary of Accounts Receivables (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Trade And Other Receivables [Line Items] | ||
Trade receivables | $ 457,850 | $ 213,815 |
Less: allowance for doubtful accounts | (7,652) | (10,334) |
Trade receivables, net | 450,198 | 203,481 |
Other receivables | 6,380 | 8,725 |
Total accounts receivable | $ 456,578 | $ 212,206 |
Accounts Receivable And Contr_4
Accounts Receivable And Contract Assets - Summary of Aging of Trade Receivables (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Aging Of Trade Receivables [Line Items] | ||
Trade receivables | $ 457,850 | $ 213,815 |
Current to 90 days [Member] | ||
Disclosure Of Aging Of Trade Receivables [Line Items] | ||
Trade receivables | 405,196 | 183,105 |
Over 90 days [Member] | ||
Disclosure Of Aging Of Trade Receivables [Line Items] | ||
Trade receivables | $ 52,654 | $ 30,710 |
Accounts Receivable And Contr_5
Accounts Receivable And Contract Assets - Summary of Movement in Allowance For Doubtful Accounts (Detail) - Trade receivables [member] - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Beginning balance | $ 10,334 | $ 11,439 |
Impairment provision additions on receivables | 628 | 275 |
Amounts settled and derecognized during the year | (3,499) | (1,317) |
Currency translation effects | 189 | (63) |
Ending balance | $ 7,652 | $ 10,334 |
Accounts Receivable And Contr_6
Accounts Receivable And Contract Assets - Summary of Movement in Contract Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Text Block 1 [Abstract] | ||
Beginning balance | $ 82,760 | $ 66,722 |
Acquisition | 281,509 | 0 |
Unbilled revenue recognized | 559,229 | 244,372 |
Amounts billed | (517,828) | (228,327) |
Currency translation effects | 3,768 | (7) |
Ending balance | 409,438 | 82,760 |
Current contract assets | 186,259 | 82,760 |
Non-current contract assets | 223,179 | 0 |
Contract assets | $ 409,438 | $ 82,760 |
Inventories - Summary Of Detail
Inventories - Summary Of Detailed Information About Inventories (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Classes of current inventories [abstract] | ||
Direct materials | $ 107,575 | $ 83,943 |
Repair and distribution parts | 136,876 | 54,156 |
Work-in-progress | 98,297 | 31,298 |
Equipment | 26,550 | 3,290 |
Total inventories | 369,298 | 172,687 |
Work-in-progress related to finance leases | $ 41,986 | $ 36,169 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Text Block 1 [Abstract] | ||
Cost of inventories recognised as expense | $ 1,455.1 | $ 757.9 |
Inventory write down | 2.1 | 6.1 |
Finance leases related to inventory | $ 74.5 | $ 36.2 |
Property, Plant And Equipment_3
Property, Plant And Equipment And Energy Infrastructure Assets - Summary Of Property Plant And Equipment And Rental Equipment (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | $ 96,414 | |
Ending Balance | 152,505 | $ 96,414 |
Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 199,992 | 198,544 |
Acquisition | 60,395 | |
Additions | 8,043 | 5,154 |
Reclassification | (407) | (404) |
Disposals | (3,031) | (2,502) |
Currency translation effects | 5,250 | (800) |
Ending Balance | 270,242 | 199,992 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (103,578) | (95,908) |
Depreciation charge | (15,557) | (10,407) |
Disposals | 2,814 | 2,417 |
Currency translation effects | (1,416) | 320 |
Ending Balance | (117,737) | (103,578) |
Energy infrastructure assets [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 610,328 | |
Ending Balance | 1,250,338 | 610,328 |
Energy infrastructure assets [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 839,734 | 881,684 |
Acquisition | 581,338 | |
Additions | 107,797 | 52,187 |
Disposals | (23,233) | (82,304) |
Currency translation effects | 36,318 | (11,833) |
Ending Balance | 1,541,954 | 839,734 |
Energy infrastructure assets [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (229,406) | (243,870) |
Depreciation charge | (83,289) | (55,466) |
Impairment | (1,233) | (537) |
Disposals | 9,671 | 62,990 |
Currency translation effects | 12,641 | 7,477 |
Ending Balance | (291,616) | (229,406) |
Land [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 18,411 | |
Ending Balance | 23,559 | 18,411 |
Land [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 18,411 | 18,471 |
Acquisition | 4,237 | |
Additions | 0 | |
Disposals | (6) | |
Currency translation effects | 917 | (60) |
Ending Balance | 23,559 | 18,411 |
Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 63,934 | |
Ending Balance | 92,734 | 63,934 |
Buildings [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 114,021 | 112,179 |
Acquisition | 31,864 | |
Additions | 6 | 0 |
Reclassification | 885 | 2,327 |
Disposals | (1,100) | (66) |
Currency translation effects | 5,724 | (419) |
Ending Balance | 151,400 | 114,021 |
Buildings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (50,087) | (44,334) |
Depreciation charge | (7,205) | (5,956) |
Disposals | 987 | 66 |
Currency translation effects | (2,361) | 137 |
Ending Balance | (58,666) | (50,087) |
Equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 11,001 | |
Ending Balance | 31,627 | 11,001 |
Equipment [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 64,492 | 63,844 |
Acquisition | 22,952 | |
Additions | 2,001 | 831 |
Reclassification | 4,022 | 2,566 |
Disposals | (1,925) | (2,436) |
Currency translation effects | (844) | (313) |
Ending Balance | 90,698 | 64,492 |
Equipment [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | (53,491) | (51,574) |
Depreciation charge | (8,352) | (4,451) |
Disposals | 1,827 | 2,351 |
Currency translation effects | 945 | 183 |
Ending Balance | (59,071) | (53,491) |
Assets under construction [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3,068 | |
Ending Balance | 4,585 | 3,068 |
Assets under construction [member] | Gross carrying amount [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning Balance | 3,068 | 4,050 |
Acquisition | 1,342 | |
Additions | 6,036 | 4,323 |
Reclassification | (5,314) | (5,297) |
Currency translation effects | (547) | (8) |
Ending Balance | $ 4,585 | $ 3,068 |
Property, Plant And Equipment_4
Property, Plant And Equipment And Energy Infrastructure Assets - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Energy infrastructure assets [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impairment loss recognised in profit or loss, rental equipment | $ 1.2 | $ 0.5 |
Earnings Or Loss [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impact of the reclassification on property, plant and equipment depreciation | 98.8 | 65.9 |
Cost Of Goods Sold [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impact of the reclassification on property, plant and equipment depreciation | 94.7 | 64.6 |
Selling And Administrative Expenses [Member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Impact of the reclassification on property, plant and equipment depreciation | $ 4.1 | $ 1.3 |
Lease Right-of-Use Assets - Sum
Lease Right-of-Use Assets - Summary of Reconciliation of Lease Right of Use Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | $ 49,887 | |
Additions | 9,977 | $ 9,721 |
Ending Balance | 78,372 | 49,887 |
Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | 82,739 | 75,602 |
Acquisition (Note 7) | 32,432 | |
Additions | 11,202 | 10,875 |
Disposal | (10,064) | (3,227) |
Currency translation effects | 2,856 | (511) |
Ending Balance | 119,165 | 82,739 |
Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | (32,852) | (21,418) |
Depreciation charge | (15,818) | (13,842) |
Disposal | 9,274 | 2,249 |
Currency translation effects | (1,397) | 159 |
Ending Balance | (40,793) | (32,852) |
Land and buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | 38,182 | |
Ending Balance | 66,950 | 38,182 |
Land and buildings [member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | 58,380 | 56,242 |
Acquisition (Note 7) | 31,192 | |
Additions | 7,173 | 4,097 |
Disposal | (3,935) | (1,644) |
Currency translation effects | 1,297 | (315) |
Ending Balance | 94,107 | 58,380 |
Land and buildings [member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | (20,198) | (13,527) |
Depreciation charge | (9,994) | (8,350) |
Disposal | 3,543 | 1,535 |
Currency translation effects | (508) | 144 |
Ending Balance | (27,157) | (20,198) |
Equipment [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | 11,705 | |
Ending Balance | 11,422 | 11,705 |
Equipment [Member] | Gross carrying amount [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | 24,359 | 19,360 |
Acquisition (Note 7) | 1,240 | |
Additions | 4,029 | 6,778 |
Disposal | (6,129) | (1,583) |
Currency translation effects | 1,559 | (196) |
Ending Balance | 25,058 | 24,359 |
Equipment [Member] | Accumulated depreciation and amortisation [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Beginning Balance | (12,654) | (7,891) |
Depreciation charge | (5,824) | (5,492) |
Disposal | 5,731 | 714 |
Currency translation effects | (889) | 15 |
Ending Balance | $ (13,636) | $ (12,654) |
Lease Right-Of-Use Assets - Add
Lease Right-Of-Use Assets - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Or Loss [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation, right-of-use asset | $ 15.8 | $ 13.8 |
Cost Of Goods Sold [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation, right-of-use asset | 13.1 | 11.2 |
Selling And Administrative Expenses [Member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Depreciation, right-of-use asset | $ 2.7 | $ 2.6 |
Finance Lease Receivable - Addi
Finance Lease Receivable - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Weighted average interest rate implicit | 9.40% | 8% |
Selling profit (loss) on finance leases | $ 17.5 | $ 6.2 |
Income relating to variable lease payments | $ 14.8 | $ 5.4 |
Bottom of range [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease maturity term | 3 years | |
Top of range [member] | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Finance lease maturity term | 10 years |
Finance Lease Receivable - Summ
Finance Lease Receivable - Summary of Maturity Analysis of Finance Lease Receivable (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Minimum lease payments | $ 414,410 | $ 143,986 | |
Unearned finance income | (119,906) | (40,628) | |
Total | 294,504 | 103,358 | $ 64,274 |
Present Value Of Minimum Lease Payments To Be Received | 294,504 | 103,358 | |
Present Value Of Unearned Finance Income | 0 | 0 | |
Total | 294,504 | 103,358 | |
Not later than one year [member] | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Minimum lease payments | 73,614 | 16,420 | |
Present Value Of Minimum Lease Payments To Be Received | 60,020 | 15,248 | |
Between One And Five Years [Member] | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Minimum lease payments | 196,314 | 64,739 | |
Present Value Of Minimum Lease Payments To Be Received | 149,052 | 49,546 | |
Later than five years [member] | |||
Disclosure of maturity analysis of finance lease payments receivable [line items] | |||
Minimum lease payments | 144,482 | 62,827 | |
Present Value Of Minimum Lease Payments To Be Received | $ 85,432 | $ 38,564 |
Finance Lease Receivable - Su_2
Finance Lease Receivable - Summary of Reconciliation of Finance Lease (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Detailed Information About Reconciliation Of Finance Lease [Abstract] | ||
Balance, January 1 | $ 103,358 | $ 64,274 |
Acquisition (Note 7) | 110,097 | 0 |
Additions | 86,602 | 40,154 |
Interest income | 14,801 | 5,417 |
Billings and payments | (33,740) | (6,597) |
Currency translation effects | 13,386 | 110 |
Balance, December 31 | $ 294,504 | $ 103,358 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Detailed Information About Other Assets [Abstract] | |||
Investment in associates and joint ventures | $ 34,977 | $ 27,064 | |
Long-term receivables | [1] | 34,127 | 24,172 |
Prepaid deposits | 13,972 | 79 | |
Total | 83,076 | 51,315 | |
Noncurrent Preferred Shares Receivable | $ 28,000 | $ 24,200 | |
[1]Included in long-term receivables are preferred shares in the amount of $28.0 million (December 31, 2020 – $24.2 million). The full amount was settled subsequent to the end of the year. |
Intangible Assets - Summary of
Intangible Assets - Summary of Detailed Information About Intangible Assets (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | $ 10,118 | |
Ending balance | 102,773 | $ 10,118 |
Customer relationships and other [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 5,777 | |
Ending balance | 77,883 | 5,777 |
Software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 4,341 | |
Ending balance | 24,890 | 4,341 |
Cost [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 118,663 | 118,522 |
Acquisition (Note 7) | 102,789 | |
Reclassification | 407 | 404 |
Disposal | (11) | |
Currency translation effects | 3,765 | (263) |
Ending balance | 225,613 | 118,663 |
Cost [member] | Customer relationships and other [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 69,594 | 69,824 |
Acquisition (Note 7) | 80,514 | |
Currency translation effects | 1,202 | (230) |
Ending balance | 151,310 | 69,594 |
Cost [member] | Software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | 49,069 | 48,698 |
Acquisition (Note 7) | 22,275 | |
Reclassification | 407 | 404 |
Disposal | (11) | |
Currency translation effects | 2,563 | (33) |
Ending balance | 74,303 | 49,069 |
Accumulated amortization [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (108,545) | (101,978) |
Amortization charge | (9,437) | (6,721) |
Disposal | 11 | |
Currency translation effects | (4,869) | 154 |
Ending balance | (122,840) | (108,545) |
Accumulated amortization [member] | Customer relationships and other [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (63,817) | (59,296) |
Amortization charge | (7,239) | (4,642) |
Currency translation effects | (2,371) | 121 |
Ending balance | (73,427) | (63,817) |
Accumulated amortization [member] | Software [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Beginning balance | (44,728) | (42,682) |
Amortization charge | (2,198) | (2,079) |
Disposal | 11 | |
Currency translation effects | (2,498) | 33 |
Ending balance | $ (49,413) | $ (44,728) |
Goodwill and Impairment Revie_3
Goodwill and Impairment Review of Goodwill - Summary of Detailed Information About Goodwill (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [abstract] | ||
Balance, January 1 | $ 566,270 | $ 576,028 |
Acquisition (Note 7) | 139,425 | |
Impairment | (48,000) | 0 |
Currency translation effects | 21,682 | (9,758) |
Closing balance | $ 679,377 | $ 566,270 |
Goodwill and Impairment Revie_4
Goodwill and Impairment Review of Goodwill - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Impairment loss recognised in profit or loss, goodwill | $ (48,000) | $ 0 | |
Rest Of World [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Tax rate effect of impairment of goodwill | 12.60% | ||
CANADA [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Impairment loss recognised in profit or loss, goodwill | $ 48,000 | ||
EH Operating Segments [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Tax rate effect of impairment of goodwill | 14.50% | ||
Latin America [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Tax rate effect of impairment of goodwill | 15.30% | ||
Earnings before finance costs and tax | $ 43,700 | ||
Impact on value in use | $ 54,800 | ||
United States | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Tax rate effect of impairment of goodwill | 10.70% | 9.40% | |
Canada | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Tax rate effect of impairment of goodwill | 12% | 10.70% |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities - Summary of Detailed Information About Accounts Payable and Accrued Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Detailed Information About Accounts Payable And Accrued Liabilities [Abstract] | ||
Accounts payable and accrued liabilities | $ 610,579 | $ 234,212 |
Accrued dividend payable | 3,093 | 2,242 |
Cash-settled share-based payments | 13,477 | 4,293 |
Total accounts payable and accrued liabilities | $ 627,149 | $ 240,747 |
Provisions - Summary of other p
Provisions - Summary of other provisions (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Classes of other provisions [abstract] | |||
Warranty provision | $ 13,411 | $ 6,636 | |
Legal provision | 3,406 | ||
Restructuring provision | 2,009 | ||
Current provisions | $ 18,826 | $ 6,636 | $ 10,549 |
Provisions - Summary of tabular
Provisions - Summary of tabular form of movement in provisions (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Balance, January 1 | $ 6,636 | $ 10,549 |
Acquisition | 8,579 | |
Additions during the year | 7,121 | 849 |
Amounts settled and released in the year | (3,669) | (4,681) |
Currency translation effects | 159 | (81) |
Balance, December 31 | 18,826 | 6,636 |
Warranty provision [member] | ||
Disclosure of other provisions [line items] | ||
Balance, January 1 | 6,636 | 10,549 |
Acquisition | 5,888 | |
Additions during the year | 4,395 | 849 |
Amounts settled and released in the year | (3,669) | (4,681) |
Currency translation effects | 161 | (81) |
Balance, December 31 | 13,411 | $ 6,636 |
Legal proceedings provision [member] | ||
Disclosure of other provisions [line items] | ||
Acquisition | 2,691 | |
Additions during the year | 717 | |
Amounts settled and released in the year | 0 | |
Currency translation effects | (2) | |
Balance, December 31 | 3,406 | |
Restructuring provision [member] | ||
Disclosure of other provisions [line items] | ||
Additions during the year | 2,009 | |
Balance, December 31 | $ 2,009 |
Deferred Revenues - Summary Of
Deferred Revenues - Summary Of Detailed Information About Deferred Revenue (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Detailed Information About Deferred Revenue [Abstract] | ||
Balance, January 1 | $ 84,614 | $ 35,409 |
Acquisition (Note 7) | 135,409 | |
Cash received in advance of revenue recognition | 526,924 | 167,956 |
Revenue subsequently recognized | (354,531) | (118,438) |
Currency translation effects | 7,104 | (313) |
Ending Balance | 399,520 | 84,614 |
Current deferred revenues | 366,085 | 84,614 |
Non-current deferred revenues | $ 33,435 | $ 0 |
Long-Term Debt - Summary of bor
Long-Term Debt - Summary of borrowings (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Drawings on Bank Facility | $ 30,522 | |
Drawings on Asset-Based Facility | 37,411 | |
Notes due | $ 846,500 | 266,865 |
Deferred transaction costs and Notes discount | (118,537) | (3,376) |
Borrowings | 1,390,325 | 331,422 |
Current portion of long-term debt | 27,088 | 0 |
Non-current portion of long-term debt | 1,363,237 | 331,422 |
Drawings on the Term Loan | 203,160 | 0 |
Drawings On Bank Facility [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Drawings on Bank Facility | 0 | 30,522 |
Drawings On Asset Based Facility [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Drawings on Asset-Based Facility | 0 | 37,411 |
Senior Unsecured Notes Maturing On December Fifteenth Two Thousand And Twenty Four [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notes due | 0 | 148,119 |
Senior Unsecured Notes Maturing On December Fifteenth Two Thousand And Twenty Seven [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notes due | 0 | 118,746 |
Senior Secured Notes Maturing On October Fifteenth Two Thousand And Seven [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Notes due | 846,500 | 0 |
Secured Revolving Credit Facility [Member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Drawings on Asset-Based Facility | $ 459,202 | $ 0 |
Long-Term Debt - Summary of b_2
Long-Term Debt - Summary of borrowings (Parenthetical) (Detail) $ in Thousands | Oct. 31, 2022 USD ($) |
Senior Secured Notes Maturing On October Fifteenth Two Thousand And Twenty Seven [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Notional amount | $ 625,000 |
Secured Term Loan Facility [Member] | |
Disclosure of detailed information about borrowings [line items] | |
Notional amount | $ 150,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | ||||
Oct. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 | Dec. 31, 2020 USD ($) | |
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings maturity | October 13, 2025 | ||||
Long term debt repayment of principal year five | $ 1,508.9 | ||||
Long term debt repayment of principal after year five | $ 0 | ||||
Non Adjusting Events Reporting Period [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Repayment Of Term Loans | $ 10,000 | ||||
Drawings On Bank Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long term debt weighted average interest rate over a period of time | 7% | 0% | |||
Drawings On Asset Based Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Long term debt weighted average interest rate over a period of time | 7.80% | 0% | |||
Revolving Credit Facility Term Loan and the Notes [Member] | Bottom of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Interest coverage ratio | 2.5 | ||||
Revolving Credit Facility Term Loan and the Notes [Member] | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Senior secured net funded debt to EBITDA ratio | 2.5 | ||||
Revolving Credit Facility Term Loan and the Notes [Member] | After September 30, 2023 [Member] | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Net funded debt to EBITDA ratio | 4 | ||||
Revolving Credit Facility Term Loan and the Notes [Member] | Up to September 30, 2023 [Member] | Top of range [member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Net funded debt to EBITDA ratio | 4.5 | ||||
Secured Revolving Credit Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Estimated increase in borrowing capacity | $ 150,000 | ||||
Notional amount | $ 700,000 | ||||
Secured Term Loan Facility [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Notional amount | $ 150,000 | ||||
Senior Secured Notes Maturing On October Fifteenth Two Thousand And Twenty Seven [Member] | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Borrowings maturity | October 15, 2027 | ||||
Borrowings interest rate | 9% | ||||
Notional amount | $ 625,000 |
Lease Liabilities - Summary of
Lease Liabilities - Summary of Lease Liabilities (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Quantitative Information About Lease Liabilities [Line Items] | ||
Balance, January 1 | $ 57,014 | $ 61,926 |
Acquisitions (Note 7) | 39,845 | 0 |
Additions | 9,977 | 9,721 |
Lease interest | 3,398 | 3,029 |
Payments made against lease liabilities | (19,156) | (17,244) |
Currency translation effects and other | 1,955 | (418) |
Closing balance | 93,033 | 57,014 |
Current portion of lease liabilities | 20,125 | 13,906 |
Non-current portion of lease liabilities | $ 72,908 | $ 43,108 |
Lease Liabilities - Summary o_2
Lease Liabilities - Summary of Future Minimum Lease Payments Under Non-Cancellable Leases (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | $ 112,004 | ||
Imputed interest | 18,811 | ||
Short-term leases | 156 | ||
Low-value leases | 4 | ||
Lease liabilities | 93,033 | $ 57,014 | $ 61,926 |
2023 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 23,776 | ||
2024 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 18,427 | ||
2025 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 15,493 | ||
2026 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 12,173 | ||
2027 | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | 9,848 | ||
Thereafter | |||
Disclosure of maturity analysis of operating lease payments [line items] | |||
Undiscounted operating lease payments to be received | $ 32,287 |
Lease Liabilities - Additional
Lease Liabilities - Additional Information (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statements [Line Items] | ||
Expense relating to short-term leases for which recognition exemption has been used | $ 800 | $ 300 |
Expense relating to variable lease payments not included in measurement of lease liabilities | 1,700 | 3,000 |
Cost of sales | 900 | 1,800 |
Selling and administrative expenses | 320,444 | 147,931 |
Interest expense on lease liabilities | 3,398 | 3,029 |
Cash outflow for leases | 21,700 | 20,500 |
Selling, general and administrative expense [member] | ||
Statements [Line Items] | ||
Selling and administrative expenses | $ 800 | $ 1,200 |
Income Tax - Summary Of Compone
Income Tax - Summary Of Components Of Income Tax Expense (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | ||
Current income taxes | $ 17,945 | $ 13,135 |
Deferred income taxes | 3,265 | 43,422 |
Income tax expense from continuing operations | $ 21,210 | $ 56,557 |
Income Tax - Summary of Reconci
Income Tax - Summary of Reconciliation of Tax Expense (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Earnings before income taxes | $ (79,733) | $ 38,102 |
Canadian statutory rate | 23.40% | 23.80% |
Expected income tax provision | $ (18,658) | $ 9,068 |
Change in unrecognized deferred tax asset | 27,664 | 44,704 |
Impairment of goodwill | 11,232 | 0 |
Exchange rate effects on tax basis | (2,223) | (2,269) |
Earnings taxed in foreign jurisdictions | 543 | 2,313 |
Revaluation of Canadian deferred tax assets due to change in statutory rate | 0 | (660) |
Withholding tax on dividends received from foreign subsidiaries | 0 | 2,763 |
Amounts not deductible (taxable) for tax purposes | 4,373 | 811 |
Impact of accounting for associates and joint ventures | (1,104) | (160) |
Other | (617) | (13) |
Income tax expense from continuing operations | $ 21,210 | $ 56,557 |
Income Tax - Summary Of Income
Income Tax - Summary Of Income tax Relating To Components Of Other Comprehensive Income (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax relating to components of other comprehensive income [abstract] | ||
Fair value remeasurement of hedging instruments entered into for cash flow hedges | $ (55) | $ 77 |
Relating to cash flow hedges | 59 | (53) |
Total income tax recognized in other comprehensive income | $ 4 | $ 24 |
Income Tax - Summary Of Tempora
Income Tax - Summary Of Temporary Difference Unused Tax Losses And Unused Tax Credits (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | $ (82,679) | $ (39,192) |
Acquisition (Note 7) | 13,423 | |
Charged to net earnings | (3,266) | (43,422) |
Charged to OCI | 4 | (24) |
Exchange differences | (4,444) | (41) |
Ending Balance | (76,962) | (82,679) |
Accounting provisions and accruals | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 7,022 | 18,058 |
Acquisition (Note 7) | 756 | |
Charged to net earnings | (7,467) | (10,945) |
Charged to OCI | 0 | 0 |
Exchange differences | 51 | (91) |
Ending Balance | 362 | 7,022 |
Tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 6,519 | 28,969 |
Acquisition (Note 7) | 49,513 | |
Charged to net earnings | 1,325 | (21,808) |
Charged to OCI | 0 | 0 |
Exchange differences | (860) | (642) |
Ending Balance | 56,497 | 6,519 |
Long-term assets | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (86,255) | (73,956) |
Acquisition (Note 7) | (30,308) | |
Charged to net earnings | 1,022 | (12,398) |
Charged to OCI | 0 | 0 |
Exchange differences | (2,511) | 99 |
Ending Balance | (118,052) | (86,255) |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 511 | 544 |
Acquisition (Note 7) | 0 | |
Charged to net earnings | 0 | (572) |
Charged to OCI | 0 | 0 |
Exchange differences | (511) | 539 |
Ending Balance | 0 | 511 |
Exchange rate effects on tax bases | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | (10,476) | (12,799) |
Acquisition (Note 7) | (6,538) | |
Charged to net earnings | 1,858 | 2,269 |
Charged to OCI | 0 | 0 |
Exchange differences | (613) | 54 |
Ending Balance | (15,769) | (10,476) |
Cash flow hedges | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Beginning balance | 0 | (8) |
Acquisition (Note 7) | 0 | |
Charged to net earnings | (4) | 32 |
Charged to OCI | 4 | (24) |
Exchange differences | 0 | |
Ending Balance | $ 0 | $ 0 |
Income Tax - Summary Of Tempo_2
Income Tax - Summary Of Temporary Difference Unused Tax Losses And Unused Tax Credits (Parenthetical) (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Text Block 1 [Abstract] | |||
Deferred tax liability (asset) | $ 76,962 | $ 82,679 | $ 39,192 |
Deferred tax liabilities | 96,397 | 91,972 | |
Deferred tax assets | $ 19,435 | $ 9,293 |
Income Tax - Summary Of Deducti
Income Tax - Summary Of Deductible Temporary Differences Of Income Tax Expenses (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ 2,172,298 | $ 225,903 |
Canadian Tax Losses [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 215,703 | 138,408 |
Canadian Long-term assets [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 23,896 | 22,758 |
Canadian Accounting provisions and other accruals [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 29,143 | 26,363 |
Foreign tax Losses [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | 2,089,604 | 38,374 |
Foreign Long-term assets [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | (59,931) | 0 |
Foreign Accounting provisions and other accruals [Member] | ||
Disclosure of Deductible Temporary Differences of Income Tax Expenses [Line Items] | ||
Deductible temporary differences for which no deferred tax asset is recognised | $ (126,117) | $ 0 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) $ in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 USD ($) | |
Disclosure of defined benefit plans [line items] | |||
Federal Income Tax Rate | 15% | 15% | |
Deductible temporary differences for which no deferred tax asset is recognised | $ 2,172,298 | $ 225,903 | |
Unused tax credits for which no deferred tax asset recognised | $ 1,100 | $ 1,100 | |
Average effective tax rate | 8.40% | 8.80% | |
US | |||
Disclosure of defined benefit plans [line items] | |||
Unused tax credits for which no deferred tax asset recognised | $ 122.4 |
Share Capital Authorized - Summ
Share Capital Authorized - Summary of Issues and Outstanding (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [line items] | ||
Balance, January 1 | $ 375,524 | |
Exercise of stock options | 1,818 | $ 1,783 |
Ending balance | 589,827 | 375,524 |
Ordinary shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Balance, January 1 | $ 375,524 | $ 375,524 |
Balance, January 1 (Shares) | 89,678,845 | 89,678,845 |
Issued on Acquisition (Note 7) | $ 213,942 | $ 0 |
Issued on Acquisition (Note 7) (Shares) | 34,013,055 | 0 |
Exercise of stock options | $ 361 | $ 0 |
Exercise of stock options (Shares) | 47,120 | 0 |
Ending balance | $ 589,827 | $ 375,524 |
Ending balance (Shares) | 123,739,020 | 89,678,845 |
Share Capital Authorized - Addi
Share Capital Authorized - Additional Inforamtion (Detail) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||||
Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / shares | Oct. 13, 2022 | Oct. 12, 2022 CAD ($) shares | Oct. 12, 2022 $ / shares | |
Disclosure of classes of share capital [line items] | |||||
Dividends recognised as distributions to owners | $ (9,819) | $ (7,623) | |||
Number of instruments or interests issued or issuable | shares | 34,013,055 | ||||
Exterran Corporation [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Equity interests of acquirer | $ 213,900 | ||||
Share Price | $ / shares | $ 6.29 | ||||
Enerflex common shares [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Number of instruments or interests issued or issuable | shares | 34,013,055 | ||||
Enerflex common shares [Member] | Exterran Corporation [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Conversion of common shares in business combination | 1.021% | 1.021% | |||
Ordinary shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Dividends recognised as distributions to owners | $ 9,800 | $ 7,600 | |||
Dividends paid, ordinary shares per share | $ / shares | $ 0.1 | $ 0.085 |
Contributed Surplus - Summary o
Contributed Surplus - Summary of Contribution surplus (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Contribution surplus [Abstract] | ||
Balance, January 1 | $ 658,615 | $ 656,832 |
Share-based compensation | 1,558 | 1,783 |
Exercise of stock options | (101) | |
Ending Balance | $ 660,072 | $ 658,615 |
Revenue - Summary Of Disaggrega
Revenue - Summary Of Disaggregation Of Revenue From Contracts With Customers (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 1,777,798 | $ 960,156 |
United States | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 890,899 | 451,675 |
Canada | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 261,865 | 173,181 |
Oman | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 119,906 | 84,486 |
Bahrain | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 85,540 | 40,361 |
Argentina | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 80,524 | 34,321 |
Australia | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 65,618 | 61,520 |
Mexico | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 64,325 | 27,355 |
Brazil | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 45,367 | 17,289 |
Iraq | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 25,917 | 0 |
Colombia | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 21,278 | 17,795 |
United Arab Emirates | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 20,995 | 2,494 |
Egypt | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 20,319 | 7,323 |
Other | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 75,245 | 42,356 |
Energy Infrastructure [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 381,087 | 278,653 |
After Market Services [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 443,660 | 327,376 |
Engineered Systems [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 953,051 | $ 354,127 |
Revenue - Summary of Disaggre_2
Revenue - Summary of Disaggregation of Revenue From Contracts With Customers (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statements [Line Items] | ||
Revenue Related To Operating Leases | $ 111.3 | $ 64.3 |
Revenue Related To Its Usa Contract Compression Fleet | $ 127 | $ 102 |
Revenue - Disclosure Of Perform
Revenue - Disclosure Of Performance Obligations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | $ 4,526,917 |
Less than one year [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 2,110,042 |
One to two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 540,369 |
Greater than two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 1,876,506 |
Energy Infrastructure [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 2,869,028 |
Energy Infrastructure [Member] | Less than one year [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 550,009 |
Energy Infrastructure [Member] | One to two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 492,096 |
Energy Infrastructure [Member] | Greater than two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 1,826,923 |
After Market Services [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 152,019 |
After Market Services [Member] | Less than one year [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 76,260 |
After Market Services [Member] | One to two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 26,176 |
After Market Services [Member] | Greater than two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 49,583 |
Engineered Systems [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 1,505,870 |
Engineered Systems [Member] | Less than one year [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 1,483,773 |
Engineered Systems [Member] | One to two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | 22,097 |
Engineered Systems [Member] | Greater than two years [Member] | |
Disclosure of performance obligations [line items] | |
Revenue from performance obligations satisfied or partially satisfied in previous periods | $ 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-based Compensation Expenses (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | $ 16,162 | $ 12,937 |
Equity settled share-based payments [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | 1,558 | 1,783 |
Deferred share units [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | 3,622 | 3,053 |
Phantom share entitlement plan [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | 117 | 102 |
Performance share units [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | 4,172 | 3,470 |
Restricted share units [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | 4,454 | 2,751 |
Cash performance target [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Share-based compensation expense | $ 2,239 | $ 1,778 |
Share-Based Compensation - Equi
Share-Based Compensation - Equity settled share based payment arrangements (Detail) | 12 Months Ended | |
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Options outstanding, beginning of period, Number of options | shares | 4,456,444 | 4,057,142 |
Granted, Number of options | shares | 654,847 | |
Exercised, Number of options | shares | (47,120) | 0 |
Forfeited, Number of options | shares | (27,286) | (24,267) |
Expired, Number of options | shares | (1,292,809) | (231,278) |
Options outstanding, end of period, Number of options | shares | 3,089,229 | 4,456,444 |
Options exercisable, end of period, Number of options | shares | 1,671,421 | 2,445,230 |
Options outstanding, beginning of period, Weighted average exercise price | $ / shares | $ 11.66 | $ 12.78 |
Granted, Weighted average exercise price | $ / shares | 7.85 | |
Exercised, Weighted average exercise price | $ / shares | 5.51 | 0 |
Forfeited, Weighted average exercise price | $ / shares | 13.51 | 9.25 |
Expired, Weighted average exercise price | $ / shares | 13.98 | 20.75 |
Options outstanding, end of period, Weighted average exercise price | $ / shares | 10.77 | 11.66 |
Options exercisable, end of period, Weighted average exercise price | $ / shares | $ 12.48 | $ 13.62 |
Share-Based Compensation - Eq_2
Share-Based Compensation - Equity settled share based payment arrangements (Parenthetical) (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Share based compensation by share based award weighted average exercise price of options at the date of exercise | $ 8.03 | $ 0 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) shares $ / shares | Dec. 31, 2021 CAD ($) shares $ / shares | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share based compensation by share based award number of options granted during the period | shares | 654,847 | ||
Share based compensation by share based award weighted average fair value of stock options granted during the period | $ / shares | $ 2.89 | ||
Allocated share based compensation | $ 16,162,000 | $ 12,937,000 | |
Number of Shares Of Cash Settled During The Period | shares | 572,260 | ||
Deferred Share Units [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Allocated share based compensation | $ 3,622,000 | 3,053,000 | |
Share based compensation by share based award equity instruments other than options granted | shares | 307,037 | ||
Settlement of liability in respect of share based transactions | $ 600,000 | 0 | |
Deferred Share Units [Member] | Current Liabilities [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share based transaction | 3,400,000 | 0 | |
Deferred Share Units [Member] | Director And Executive [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Allocated share based compensation | 2,200,000 | 2,100,000 | |
Phantom Share Entitlement Plan [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Allocated share based compensation | $ 117,000 | $ 102,000 | |
Share based compensation by share based award equity instruments other than options granted | shares | 0 | 24,715 | |
Intrinsic value of liabilities from share based payment transactions | $ 800,000 | $ 900,000 | |
Phantom Share Entitlement Plan [Member] | Current Liabilities [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share based transaction | 300,000 | 200,000 | |
Performance Share Units [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Allocated share based compensation | $ 4,172,000 | 3,470,000 | |
Share based compensation by share based award equity instruments other than options granted | shares | 634,382 | ||
Share based compensation number of days within which award will be settled from the date of determination of vesting percentage | 14 days | ||
Settlement of liability in respect of share based transactions | $ 2,200,000 | 1,000,000 | |
Performance Share Units [Member] | Current Liabilities [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share based transaction | 4,000,000 | 2,000,000 | |
Performance Share Units [Member] | Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share based compensation by share based award vesting percentage | 200% | ||
Restricted Share Units [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Allocated share based compensation | $ 4,454,000 | 2,751,000 | |
Share based compensation by share based award equity instruments other than options granted | shares | 995,336 | ||
Restricted Share Units [Member] | Current Liabilities [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share based transaction | $ 4,300,000 | $ 1,300,000 | |
Restricted Share Units [Member] | Directors And Certain Key Executives [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share based compensation by share based award equity instruments other than options granted | shares | 995,336 | 472,819 | |
Settlement of liability in respect of share based transactions | $ 2,400,000 | $ 2,300,000 | |
Cash Performance Target Plan [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Settlement of liability in respect of share based transactions | 1,600,000 | $ 1,500,000 | |
Share based compensation by share based equity instruments other than options granted during the period value | $ 3,100,000 | ||
Share based compensation by share based award weighted average fair value of equity instruments other than options granted | $ / shares | $ 6.29 | $ 7.85 | |
Cash Performance Target Plan [Member] | Current Liabilities [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Liabilities from share based transaction | $ 2,200,000 | ||
Employee Share Purchase Plan [Member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Share Based Compensation Employer Contribution | $ 1,000 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Options Outstanding and Exercisable (Detail) | 12 Months Ended | |||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares | |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number outstanding, Options Outstanding | shares | 3,089,229 | 3,089,229 | 4,456,444 | 4,057,142 |
Weighted average remaining life, Options Outstanding | 3 years 9 months 21 days | |||
Weighted average exercise price, Options Outstanding | $ / shares | $ 10.77 | |||
Number outstanding, Options Exercisable | shares | 1,671,421 | 1,671,421 | 2,445,230 | |
Weighted average remaining life, Options Exercisable | 3 years 1 month 6 days | |||
Weighted average exercise price, Options Exercisable | $ / shares | $ 12.48 | $ 13.62 | ||
Exercise Price Range One [member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number outstanding, Options Outstanding | shares | 783,880 | 783,880 | ||
Weighted average remaining life, Options Outstanding | 4 years 7 months 13 days | |||
Weighted average exercise price, Options Outstanding | $ / shares | $ 5.51 | |||
Number outstanding, Options Exercisable | shares | 286,552 | 286,552 | ||
Weighted average remaining life, Options Exercisable | 4 years 7 months 13 days | |||
Weighted average exercise price, Options Exercisable | $ / shares | $ 5.51 | |||
Exercise Price Range Two [member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number outstanding, Options Outstanding | shares | 1,072,991 | 1,072,991 | ||
Weighted average remaining life, Options Outstanding | 4 years 3 months 18 days | |||
Weighted average exercise price, Options Outstanding | $ / shares | $ 9.81 | |||
Number outstanding, Options Exercisable | shares | 460,251 | 460,251 | ||
Weighted average remaining life, Options Exercisable | 2 years 11 months 12 days | |||
Weighted average exercise price, Options Exercisable | $ / shares | $ 11.48 | |||
Exercise Price Range Three [member] | ||||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | ||||
Number outstanding, Options Outstanding | shares | 1,232,358 | 1,232,358 | ||
Weighted average remaining life, Options Outstanding | 2 years 10 months 9 days | |||
Weighted average exercise price, Options Outstanding | $ / shares | $ 14.95 | |||
Number outstanding, Options Exercisable | shares | 924,618 | 924,618 | ||
Weighted average remaining life, Options Exercisable | 2 years 8 months 12 days | |||
Weighted average exercise price, Options Exercisable | $ / shares | $ 15.14 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Options Outstanding and Exercisable (Parenthetical) (Detail) | Dec. 31, 2022 $ / shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 $ / shares |
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | $ 10.77 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 12.48 | $ 13.62 | |
Exercise Price Range One [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 5.51 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 5.51 | ||
Exercise Price Range Two [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | $ 9.81 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 11.48 | ||
Exercise Price Range Three [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 14.95 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | $ 15.14 | ||
Bottom of range [member] | Exercise Price Range One [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 5.51 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 5.51 | ||
Bottom of range [member] | Exercise Price Range Two [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 6.69 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 6.69 | ||
Bottom of range [member] | Exercise Price Range Three [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 13.52 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 13.52 | ||
Top of range [member] | Exercise Price Range One [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 6.68 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 6.68 | ||
Top of range [member] | Exercise Price Range Two [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 13.51 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | 13.51 | ||
Top of range [member] | Exercise Price Range Three [member] | |||
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items] | |||
Share based compensation by share based award exercise price of outstanding share options | 16.12 | ||
Share based compensation by share based award weighted average excersie price of options excercisable in a share based payment arrangement | $ 16.12 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Share Units (Deferred share units) (Detail) - Deferred Share Units [Member] | 12 Months Ended |
Dec. 31, 2022 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Opening Balance, Number | shares | 1,406,170 |
Granted, Number | shares | 307,037 |
In lieu of dividends, Number of DSUs | shares | 20,806 |
Vested, Number | shares | (108,500) |
Ending Balance, Number | shares | 1,625,513 |
Opening Balance, Weighted average grant | $ / shares | $ 10.51 |
Granted, Weighted average grant | $ / shares | 7.12 |
In lieu of dividends , Weighted average grant | $ / shares | 6.86 |
Vested, Weighted average grant | $ / shares | 5.45 |
Ending Balance, Weighted average grant | $ / shares | $ 10.16 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Share Units (Deferred share units) (Parenthetical) (Detail) - Deferred Share Units [Member] - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 3.4 | $ 0 |
Other Long Term Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 10.5 | $ 10.8 |
Share-Based Compensation - Su_6
Share-Based Compensation - Summary of Share Units (Phantom Share Entitlement Plan) (Detail) - Phantom Share Entitlement Plan [Member] | 12 Months Ended |
Dec. 31, 2022 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Opening Balance, Number | shares | 222,920 |
Expired | shares | (22,669) |
Ending Balance, Number | shares | 200,251 |
Opening Balance, Weighted average grant | $ / shares | $ 12.15 |
Expired, Weighted average grant | $ / shares | 11.69 |
Ending Balance, Weighted average grant | $ / shares | $ 12.21 |
Share-Based Compensation - Su_7
Share-Based Compensation - Summary of Share Units (Phantom Share Entitlement Plan) (Parenthetical) (Detail) - Phantom Share Entitlement Plan [Member] - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 0.3 | $ 0.2 |
Other Long Term Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 0.1 | $ 0.1 |
Share-Based Compensation - Su_8
Share-Based Compensation - Summary of Share Units (Performance Share Units) (Detail) - Performance Share Units [Member] | 12 Months Ended |
Dec. 31, 2022 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Opening Balance, Number | shares | 1,308,416 |
Granted, Number | shares | 634,382 |
In lieu of dividends, Number of DSUs | shares | 17,835 |
Vested, Number | shares | (318,887) |
Ending Balance, Number | shares | 1,641,746 |
Opening Balance, Weighted average grant | $ / shares | $ 9.02 |
Granted, Weighted average grant | $ / shares | 6.29 |
In lieu of dividends , Weighted average grant | $ / shares | 6.93 |
Vested, Weighted average grant | $ / shares | 6.1 |
Ending Balance, Weighted average grant | $ / shares | $ 8.51 |
Share-Based Compensation - Su_9
Share-Based Compensation - Summary of Share Units (Performance Share Units) (Parenthetical) (Detail) - Performance Share Units [Member] - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 4 | $ 2 |
Other Long Term Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 2.5 | $ 2.6 |
Share-Based Compensation - S_10
Share-Based Compensation - Summary of Share Units (Restricted Share Units) (Detail) - Restricted Share Units [Member] | 12 Months Ended |
Dec. 31, 2022 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Opening Balance, Number | shares | 896,474 |
Granted, Number | shares | 995,336 |
Acquisition (Note 7), Number | shares | 572,260 |
In lieu of dividends, Number of DSUs | shares | 11,344 |
Vested, Number | shares | (394,537) |
Forfeited, Number | shares | (79,044) |
Ending Balance, Number | shares | 2,001,833 |
Opening Balance, Weighted average grant | $ / shares | $ 7.62 |
Granted, Weighted average grant | $ / shares | 6.29 |
Acquisition (Note 7), Weighted average grant | $ / shares | 6.29 |
In lieu of dividends , Weighted average grant | $ / shares | 6.98 |
Vested, Weighted average grant | $ / shares | 6.15 |
Forfeited, Weighted average grant | $ / shares | 6.73 |
Ending Balance, Weighted average grant | $ / shares | $ 6.9 |
Share-Based Compensation - S_11
Share-Based Compensation - Summary of Share Units (Restricted Share Units) (Parenthetical) (Detail) - Restricted Share Units [Member] - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other Long Term Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 700 | $ 0 |
Current Liabilities [Member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities from share based transaction | $ 4,300 | $ 1,300 |
Retirement Benefits Plan - Summ
Retirement Benefits Plan - Summary of defined contribution plans (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Defined Contribution Plans Explanatory [Abstract] | ||
Defined contribution plans | $ 5,169 | $ 4,567 |
401(k) matched savings plan | 4,110 | 3,025 |
Net pension expense | $ 9,279 | $ 7,592 |
Finance Costs And Income - Summ
Finance Costs And Income - Summary of finance costs and income (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Finance Costs [Abstract] | |||
Short and long-term borrowings | [1] | $ 46,009 | $ 17,252 |
Interest on lease liability | 3,398 | 3,029 | |
Total finance costs | 49,407 | 20,281 | |
Finance Income | |||
Interest income | 10,484 | 3,286 | |
Net finance costs | $ 38,923 | $ 16,995 | |
[1]Finance costs on short and long-term borrowings primarily relate to interest on the Company’s newly issued Notes, Term Loan and Revolving Credit Facility. Refer to Note 19 for more information on interest rates on the Notes, Term Loan and Revolving Credit Facility. |
Reconciliation of Earnings Pe_3
Reconciliation of Earnings Per Share Calculations - Summary of Reconciliation of Earnings Per Share Calculations (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CAD ($) $ / shares shares | Dec. 31, 2022 $ / shares | Dec. 31, 2021 CAD ($) $ / shares shares | Dec. 31, 2021 $ / shares | |
Earnings per share [line items] | ||||
Basic - Net loss | $ | $ (100,943) | $ (18,455) | ||
Basic - Weighted average shares outstanding | shares | 97,045,917 | 89,678,845 | ||
Basic - Per share | (per share) | $ (1.04) | $ (1.04) | $ (0.21) | $ (0.21) |
Dilutive effect of stock option conversion - Net loss | $ | $ 0 | $ 0 | ||
Dilutive effect of stock option conversion - Weighted average shares outstanding | shares | 0 | 0 | ||
Dilutive effect of stock option conversion - Per share | $ / shares | 0 | 0 | ||
Diluted - Net loss | $ | $ (100,943) | $ (18,455) | ||
Diluted - Weighted average shares outstanding | shares | 97,045,917 | 89,678,845 | ||
Diluted - Per share | (per share) | $ (1.04) | $ (1.04) | $ (0.21) | $ (0.21) |
Financial Instruments - Summary
Financial Instruments - Summary of Detailed Information About Financial Instruments (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | |||
Carrying value, Cash and cash equivalents | $ 253,776 | $ 172,758 | $ 95,676 |
Carrying value, Derivative instruments in designated hedge accounting relationships | 901 | 294 | |
Carrying value, Accounts receivable | 456,578 | 212,206 | |
Carrying value, Preferred shares receivable | 27,954 | ||
Carrying value, Long-term receivables | 24,172 | ||
Carrying value, Derivative instruments in designated hedge accounting relationships | 977 | 180 | |
Carrying value, Accounts payable and accrued liabilities | 627,149 | 240,747 | |
Carrying value, Long-term debt – Revolving Credit Facility | 459,202 | ||
Carrying value, Long-term debt – Term Loan | 203,160 | ||
Carrying value, Long-term debt – Bank Facility | 30,522 | ||
Carrying value, Long-term debt – Asset-Based Facility | 37,411 | ||
Carrying value, Long-term debt – Notes | 846,500 | 266,865 | |
Carrying value, Other long-term liabilities | 21,757 | 15,785 | |
Estimated fair value, Financial Liabilities | 977 | 180 | |
Accounts payable and accrued liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 627,149 | 240,747 | |
Long-term debt – Revolving Credit Facility [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 459,202 | ||
Long-term debt – Term Loan [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 203,160 | ||
Long-term debt – Bank Facility [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 30,522 | ||
Long-term debt – Asset-Based Facility [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 37,411 | ||
Long-term debt – Notes [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 869,288 | 280,295 | |
Other long-term liabilities [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Liabilities | 21,757 | 15,785 | |
Cash and cash equivalents [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Assets | 253,776 | 172,758 | |
Derivative instruments in designated hedge accounting relationships [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Assets | 901 | 294 | |
Accounts receivable [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Assets | 456,578 | 212,206 | |
Long-term receivables [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Assets | $ 27,471 | ||
Preferred Shares Receivable [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated fair value, Financial Assets | $ 28,702 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Fair Value Measurement of Financial Assets and Financial Liabilities (Detail) - CAD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | $ 977 | $ 180 |
Carrying value, Derivative financial instruments | 901 | 294 |
Carrying value, Preferred shares receivable | 27,954 | |
Carrying value, Derivative financial instruments | 977 | 180 |
Carrying value, Long-term debt – Notes | 846,500 | 266,865 |
Long-term debt – Notes [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 869,288 | $ 280,295 |
Preferred Shares Receivable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 28,702 | |
Level 1 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 0 | |
Level 1 [member] | Long-term debt – Notes [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 0 | |
Level 1 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 0 | |
Level 1 [member] | Preferred Shares Receivable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 0 | |
Level 2 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 977 | |
Level 2 [member] | Long-term debt – Notes [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 869,288 | |
Level 2 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 901 | |
Level 2 [member] | Preferred Shares Receivable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 28,702 | |
Level 3 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 0 | |
Level 3 [member] | Long-term debt – Notes [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Liabilities | 0 | |
Level 3 [member] | Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | 0 | |
Level 3 [member] | Preferred Shares Receivable [Member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial Assets | $ 0 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Detailed Information About Hedging Instruments (Detail) - Currency risk [member] $ in Thousands | Dec. 31, 2022 CAD ($) |
January 2023 – November 2023 [member] | USD | Purchase contracts [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Notional amount | 29,182 |
January 2023 – November 2023 [member] | USD | Sales contracts [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Notional amount | (26,180) |
January 2023 – March 2023 [member] | EUR | Purchase contracts [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Notional amount | 3,568 |
March 2023 [member] | EUR | Sales contracts [member] | |
Disclosure of detailed information about hedging instruments [line items] | |
Notional amount | (2,453) |
Financial Instruments - Summa_4
Financial Instruments - Summary of Earnings Before Tax Due To Weakening of Foreign Currency (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
USD | |
Earnings From Foreign Operation [Abstract] | |
Earnings before income taxes | $ 4,024 |
AUD | |
Earnings From Foreign Operation [Abstract] | |
Earnings before income taxes | (113) |
BRL | |
Earnings From Foreign Operation [Abstract] | |
Earnings before income taxes | $ 216 |
Financial Instruments - Summa_5
Financial Instruments - Summary of Earnings Before Tax Due To Weakening of Foreign Currency (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
USD | |
Impact Of Earnings Before Tax Due To Weakening Of Foreign Currency [Line Items] | |
Percentage of weakening of foreign currency against local currency | 5% |
Percentage of strengthening of foreign currency against local currency | 5% |
AUD | |
Impact Of Earnings Before Tax Due To Weakening Of Foreign Currency [Line Items] | |
Percentage of weakening of foreign currency against local currency | 5% |
Percentage of strengthening of foreign currency against local currency | 5% |
BRL | |
Impact Of Earnings Before Tax Due To Weakening Of Foreign Currency [Line Items] | |
Percentage of weakening of foreign currency against local currency | 5% |
Percentage of strengthening of foreign currency against local currency | 5% |
Financial Instruments - Summa_6
Financial Instruments - Summary of Sensitivity Analysis of Fair Value Measurement To Changes In Unobservable Inputs, Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
USD | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Other comprehensive income | $ 17,625 |
Earnings before income taxes | (23,450) |
AUD | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Other comprehensive income | 634 |
Earnings before income taxes | 0 |
BRL | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Other comprehensive income | 342 |
Earnings before income taxes | $ 0 |
Financial Instruments - Summa_7
Financial Instruments - Summary of Sensitivity Analysis of Fair Value Measurement To Changes In Unobservable Inputs, Liabilities (Parenthetical) (Detail) - Foreign Currency [member] | Dec. 31, 2022 |
USD | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Percentage of reasonably possible increase in unobervable input liabilities | 5% |
Percentage of reasonably possible decrease in unobervable input liabilities | 5% |
AUD | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Percentage of reasonably possible increase in unobervable input liabilities | 5% |
Percentage of reasonably possible decrease in unobervable input liabilities | 5% |
BRL | |
Disclosure of sensitivity analysis of fair value measurement to changes in unobservable inputs, liabilities [line items] | |
Percentage of reasonably possible increase in unobervable input liabilities | 5% |
Percentage of reasonably possible decrease in unobervable input liabilities | 5% |
Financial Instruments - Summa_8
Financial Instruments - Summary of Maturity Analysis For Derivative and Non Derivative Financial Liabilities (Detail) $ in Thousands | Dec. 31, 2022 CAD ($) |
Disclosure Of Maturity Analysis For Derivative And Non Derivative Financial Liabilities [Line Items] | |
Foreign currency forward contracts | $ 977 |
Accounts payable and accrued liabilities | 627,149 |
Long-term debt – Revolving credit facility | 459,202 |
Long-term debt – Term loan | 203,160 |
Long-term debt – Notes | 846,500 |
Other long-term liabilities | 21,757 |
Less than 3 months [member] | |
Disclosure Of Maturity Analysis For Derivative And Non Derivative Financial Liabilities [Line Items] | |
Foreign currency forward contracts | 712 |
Accounts payable and accrued liabilities | 627,149 |
Long-term debt – Revolving credit facility | 0 |
Long-term debt – Term loan | 0 |
Long-term debt – Notes | 0 |
Other long-term liabilities | 0 |
3 months to 1 year [member] | |
Disclosure Of Maturity Analysis For Derivative And Non Derivative Financial Liabilities [Line Items] | |
Foreign currency forward contracts | 265 |
Accounts payable and accrued liabilities | 0 |
Long-term debt – Revolving credit facility | 0 |
Long-term debt – Term loan | 27,088 |
Long-term debt – Notes | 0 |
Other long-term liabilities | 0 |
Greater than 1 year [member] | |
Disclosure Of Maturity Analysis For Derivative And Non Derivative Financial Liabilities [Line Items] | |
Foreign currency forward contracts | 0 |
Accounts payable and accrued liabilities | 0 |
Long-term debt – Revolving credit facility | 459,202 |
Long-term debt – Term loan | 176,072 |
Long-term debt – Notes | 846,500 |
Other long-term liabilities | $ 21,757 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) | |
Disclosure of detailed information about financial instruments [line items] | |||
Cumulative estimated gain losses on termination of forward contracts | $ 100 | ||
Gain losses on cash flow hedges net of tax | 360 | $ 247 | |
Accumulated fair value hedge adjustment on hedged item included in carrying amount liabilities | $ 400 | 200 | |
Percentage change in rate of interest percentage | 1% | ||
Estimated increase decrease in annual interest expense | $ 4,600 | ||
Cash and cash equivalents | 253,776 | 172,758 | $ 95,676 |
Other comprehensive income, net of tax, exchange differences on translation of foreign operations | 72,406 | (18,958) | |
USD | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other comprehensive income, net of tax, exchange differences on translation of foreign operations | $ 615,800 | ||
Revolving Credit Facility Term Loan And Notes [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest coverage ratio | 4.4 | ||
Net funded debt to EBITDA ratio | 3.3 | ||
Senior secured net funded debt to EBITDA ratio | 1.1 | ||
Revolving Credit Facility and Term Loan [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Cash and cash equivalents | $ 253,800 | ||
Loans received | 662,400 | ||
Debt instrument unused borrowing capacity | $ 313,800 | ||
USA And Canada [Member] | One Customer [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of accounts receivable and contract assets | 10% | ||
Investment In Preferred Shares [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at fair value | $ 28,700 | 27,500 | |
Investment In Preferred Shares [Member] | Long Term Receivables [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial assets at amortized costs | $ 28,000 | $ 24,200 | |
Bottom of range [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Percentage of entities revenue | 10% | 10% | |
Percentage of accounts receivable and contract assets | 10% | ||
Bottom of range [member] | Revolving Credit Facility Term Loan And Notes [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Interest coverage ratio | 2.5 | ||
Top of range [member] | Revolving Credit Facility Term Loan And Notes [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Net funded debt to EBITDA ratio | 4.5 | ||
Senior secured net funded debt to EBITDA ratio | 2.5 | ||
Senior Unsecured Notes [Member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Financial liabilities at amortized costs | $ 869,300 | ||
Senior Unsecured Notes [Member] | Discount rate, measurement input [member] | Weighted average [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Weighted average discount rate | 9 |
Capital Disclosures -Summary Of
Capital Disclosures -Summary Of Reconciliation Of Net Debt To EBITDA Ratio (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) | |
Disclosure of Reconciliation of Net debt to EBITDA ratio [Line Items] | |||
Long-term debt | $ 1,390,325 | $ 331,422 | |
Cash and cash equivalents | (253,776) | (172,758) | $ (95,676) |
Net debt | 1,136,549 | 158,664 | |
Earnings before finance costs and income taxes | (40,810) | 55,097 | |
Depreciation and amortization | 128,287 | 87,622 | |
EBITDA | $ 87,477 | $ 142,719 | |
Net debt to EBITDA ratio | 0.99 | 0.11 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary Of Net Change In Non Cash Working Capital And Other (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Change in Working Capital and Other [Line Items] | ||
Accounts receivable | $ (56,861) | $ 1,169 |
Contract assets | (45,169) | (16,038) |
Inventories | (78,697) | 39,564 |
Work-in-progress related to finance leases | (5,817) | (36,169) |
Finance leases receivable | (81,049) | (39,084) |
Income taxes receivable | 3,097 | 19,986 |
Prepayments | (35,198) | (4,806) |
Accounts payable and accrued liabilities and provisions | 77,875 | 50,510 |
Income taxes payable | (11,042) | 4,931 |
Deferred revenue | 179,497 | 49,205 |
Foreign currency and other | (17,954) | 13,669 |
Increase Decrease In Working Capital | (71,318) | 82,937 |
Interest paid – short- and long-term borrowings | 29,640 | 17,315 |
Interest paid – lease liabilities | 3,398 | 3,029 |
Total interest paid | 33,038 | 20,344 |
Interest received | 1,269 | 454 |
Taxes paid | 27,813 | 13,725 |
Taxes received | $ 5,399 | $ 23,137 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Summary Of Reconciliation Of Liabilities Arising From Financing Activities (Detail) - Long-term borrowings [member] - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accretion of bond discount | ||
Long-term debt, opening balance | $ 331,422 | $ 389,712 |
Debt assumed on Acquisition (Note 7) | 1,022,112 | 0 |
Changes from financing cash flows | 90,973 | (56,975) |
The effect of changes in foreign exchange rates | (4,099) | (406) |
Amortization of deferred transaction costs | 4,046 | 1,186 |
Accretion of Notes discount | 2,070 | 0 |
Debt transaction costs | (56,199) | (2,095) |
Long-term debt, closing balance | $ 1,390,325 | $ 331,422 |
Guarantees, Commitments,And C_2
Guarantees, Commitments,And Contingencies - Summary of Companys purchase obligations of future period (Detail) $ in Thousands | Dec. 31, 2022 CAD ($) |
Disclosure of Companys purchase obligations of future period [Abstract] | |
2023 | $ 775,339 |
2024 | 19,306 |
2025 | $ 1,005 |
Guarantees, Commitments,And C_3
Guarantees, Commitments,And Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2022 USD ($) | Dec. 31, 2022 MXN ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2017 MXN ($) | Dec. 31, 2022 CAD ($) | Jan. 31, 2022 CAD ($) | Jan. 31, 2022 MXN ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2017 USD ($) | |
Disclosure of Companys purchase obligations of future period [Abstract] | |||||||||
Letters of credit, outstanding | $ 175.1 | $ 42.1 | |||||||
Employee Severance Pay | $ 1,400,000 | $ 149.2 | $ 151,700,000 | $ 70,000 | |||||
Employee Average Salary Per Day | $ 21,000 | $ 3,500 | $ 170 | $ 3,500 | |||||
Increase Decrease In The Amount Of Employee Compensation | $ 120,000,000 | ||||||||
Percentage Of Increase In Employee Compensation | 170,000% | ||||||||
Percentage Of Increase In Employee Compensation Not Received | 12,000% | ||||||||
Number Of Years Of Severance Compensation Based On Wage Rate | 1 year 10 months 24 days |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Percent of equity method investment | 45 |
Percent interest in a joint venture | 65 |
Related Party Transactions - Su
Related Party Transactions - Summary of Remuneration of Directors and Other Key Management Personnel (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Key Management Personnel [Abstract] | ||
Salaries, Director fees and other short-term benefits | $ 6,350 | $ 5,711 |
Post-employment compensation | 721 | 580 |
Share-based payments | $ 8,315 | $ 6,979 |
Related Party Transactions - _2
Related Party Transactions - Summary of Financial Statement Impacts of all Transactions with Related Parties (Detail) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [line items] | ||
Revenue | $ 1,777,798 | $ 960,156 |
Associate – Roska DBO [member] | ||
Disclosure of transactions between related parties [line items] | ||
Revenue | 1,755 | 352 |
Purchases | 4 | 0 |
Accounts receivable | $ 22 | $ 128 |
Segmented Information - Summary
Segmented Information - Summary Of Detailed Information About Geographical Areas (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Segment revenue | $ 1,874,760 | $ 989,807 | |
Intersegment revenue | (96,962) | (29,651) | |
Revenue | 1,777,798 | 960,156 | |
Operating income | 2,272 | 54,291 | |
Segment assets | 3,307,910 | 2,201,974 | |
Goodwill | 679,377 | 566,270 | $ 576,028 |
Corporate | 282,302 | (576,802) | |
Total segment assets | 4,269,589 | 2,191,442 | |
Energy Infrastructure [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 381,087 | 278,653 | |
After-Market Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 443,660 | 327,376 | |
Engineered Systems [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 953,051 | 354,127 | |
NAM | |||
Disclosure of geographical areas [line items] | |||
Segment revenue | 1,303,885 | 680,062 | |
Intersegment revenue | (93,778) | (29,463) | |
Revenue | 1,210,107 | 650,599 | |
Operating income | 14,769 | 18,041 | |
Segment assets | 1,638,195 | 1,547,005 | |
Goodwill | 224,992 | 242,804 | |
Corporate | 0 | 0 | |
Total segment assets | 1,863,187 | 1,789,809 | |
NAM | Energy Infrastructure [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 141,900 | 103,096 | |
NAM | After-Market Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 298,333 | 215,876 | |
NAM | Engineered Systems [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 769,874 | 331,627 | |
LATAM | |||
Disclosure of geographical areas [line items] | |||
Segment revenue | 221,628 | 106,160 | |
Intersegment revenue | (434) | (95) | |
Revenue | 221,194 | 106,065 | |
Operating income | (14,654) | 6,575 | |
Segment assets | 838,063 | 214,340 | |
Goodwill | 89,264 | 85,622 | |
Corporate | 0 | 0 | |
Total segment assets | 927,327 | 299,962 | |
LATAM | Energy Infrastructure [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 129,723 | 66,069 | |
LATAM | After-Market Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 38,057 | 24,158 | |
LATAM | Engineered Systems [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 53,414 | 15,838 | |
EH | |||
Disclosure of geographical areas [line items] | |||
Segment revenue | 349,247 | 203,585 | |
Intersegment revenue | (2,750) | (93) | |
Revenue | 346,497 | 203,492 | |
Operating income | 2,157 | 29,675 | |
Segment assets | 831,652 | 440,629 | |
Goodwill | 365,121 | 237,844 | |
Corporate | 0 | 0 | |
Total segment assets | 1,196,773 | 678,473 | |
EH | Energy Infrastructure [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 109,464 | 109,488 | |
EH | After-Market Services [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | 107,270 | 87,342 | |
EH | Engineered Systems [Member] | |||
Disclosure of geographical areas [line items] | |||
Revenue | $ 129,763 | $ 6,662 |
Segmented Information - Summa_2
Segmented Information - Summary Of Detailed Information About Geographical Areas (Parenthetical) (Detail) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of geographical areas [line items] | |||
Revenue From Government Grants | $ 0 | $ 16,400 | |
Goodwill | 679,377 | $ 566,270 | $ 576,028 |
CANADA | |||
Disclosure of geographical areas [line items] | |||
Goodwill | 40,400 | ||
UNITED STATES | |||
Disclosure of geographical areas [line items] | |||
Goodwill | $ 184,600 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Apr. 06, 2023 $ / shares |
Quarterly Dividend Declared [Member] | |
Statements [Line Items] | |
Dividend payable per share | $ 0.025 |