Good afternoon, and welcome to the annual meeting of shareholders of Shawcor Limited. My name is Steve Orr, and in accordance with the company's bylaws, I'll chair today's meeting in the absence of the chair of the board, Don Wishart, who is unable to attend today's meeting due to the Ontario rules restricting gatherings of more than five persons. I'd like to welcome all shareholders and guests joining us via our webcast worldwide. Joining me today are Gaston Tano, Senior Vice President, Finance, and CFO of Shawcor Limited, and Darrell Ewert, Corporate Secretary of Shawcor Limited. As we have previously indicated, in order to mitigate health and safety risk arising from COVID-19 pandemic, and to comply with provincial orders limiting the numbers of persons present at a gathering, we have taken the necessary steps to limit attendance at the physical meeting.
However, as you will hear momentarily, a valid quorum for today's meeting is present. In order to proceed with the formal items of business of the meeting, I will ask Mr. Darrell Ewert and Mr. Gaston Tano to propose and second motions as necessary. As has been the case at prior Shawcor shareholder meetings, at the completion of the formal business of the meeting, I'll have some remarks, following which management will respond to your questions. For those of you viewing the webcast, questions may be submitted through the portal at any time during the call. In accordance with the company's bylaws, Darrell Ewert, the corporate secretary of the company, will act as secretary of the meeting. Darrell will also act as scrutineer.
A notice of this meeting, together with a form of proxy, the management proxy circular, and the 2019 annual report, have been made available to all shareholders in accordance with the requirements of the Canada Business Corporations Act and National Instrument 54-101. I will dispense with reading of the notice of the meeting. Proof of the mailing of the notice calling the meeting has been duly filed, and I would ask the secretary to keep a copy of the notice and proof of the mailing with the records of this meeting. I understand there is a quorum present and would ask the secretary to read the scrutineer's report.
We are pleased to report that there are 60 shareholders holding 49,087,608 common shares represented in person or by proxy at this meeting. This represents 69.72% of the 70,403,299 issued and outstanding common shares.
Thank you, Darrell. I now declare that the meeting is regularly called and properly constituted for the transaction of business. Would the secretary please table the minutes of the meeting of shareholders held on May 13, 2019?
Here are the minutes, Mr. Chair.
Thank you, Darrell. The minutes will be available for review by any shareholder at the offices of the company. The next item of business is the presentation of the annual report, the financial statements, and the auditor's report. The annual report has been made available to shareholders and is available online at the company's website and on SEDAR. We shall dispense with reading of the auditor's report, which is available to all shareholders in the 2019 annual report. We will now proceed with the election of directors. I declare the meeting open for nominations.
As we have previously disclosed by press release, two directors, Don Wishart and John Baldwin, have decided for personal reasons, in light of COVID-19 pandemic and its effect, that they would not stand for re-election at today's meeting. Accordingly, the number of directors to be elected today will be eight directors. Darrell Ewert will now present the nominations.
Mr. Chair, I nominate Lisa Bahash, Derek Blackwood, Laura Cillis, Kevin Forbes, Michael Hanley, Robert Mionis, Steve Orr, and Pamela Pierce as directors of the corporation to hold office until the next annual meeting of shareholders or until their successors are elected or appointed, subject to the provisions of the corporation's bylaws.
Thank you. As the company bylaws require advance notice of additional nominees to the board and no notices were received, I now declare the nomination closed, and Darrell Ewert will propose a motion to elect those nominated.
I move that each of the persons nominated as directors be elected as directors of the corporation to hold office until the next annual meeting of shareholders, or until their successors are elected or appointed, subject to the provisions of the corporation's bylaws.
Gaston Tano will second the motion.
I second the motion.
All in favor of the election of those nominated, please signify by raising your right hand. Contrary, if any? I declare the motion carried. I declare that Lisa Bahash, Derek Blackwood, Laura Cillis, Kevin Forbes, Michael Hanley, Rob Mionis, Steven Orr, Pamela Pierce, have been duly elected as directors of the corporation. Thank you. The next item of business is the appointment of the auditor for the corporation, and Darrell Ewert has a motion in this regard.
I move that Ernst & Young LLP be appointed auditor of the corporation until the next annual meeting, and that the board of directors be authorized to fix the remuneration of the auditor.
Gaston Tano will second the motion.
I second the motion.
You've heard the motion. All in favor, please signify by raising your right hand. Contrary, if any? I declare the motion carried. The next item of business is the advisory vote on the corporation's approach to executive compensation. Darrell Ewert will now propose the motion.
I move on an advisory basis, and not to diminish the role and responsibilities of the board of directors, that the shareholders accept the approach to executive compensation disclosed in the corporation's management proxy circular, delivered in advance of the 2020 annual meeting of shareholders.
Gaston Tano will second the motion.
I second the motion.
You have heard the motion. All in favor, please signify by raising your right hand. Contrary, if any? I declare the motion carried. This concludes the formal business of the meeting, and I declare that this annual meeting is now terminated. I'll now make some remarks, which we will take questions submitted afterwards. Today, we're hosting Shawcor's 2020 annual meeting in a hybrid setting, with a few people in the room with me in Toronto and the rest connecting online via the web. It is the first time we've used this format, and although we are doing our best to ensure that the technology works, I would ask for your patience should any issue arise. It is unfortunate that we are doing this meeting this way, as I've looked forward to this event each year to meet with many that have been supportive of the company over the years.
It has been two months since we held a Shawcor open house, where we hosted shareholders, supplier partners, customers, and employees over a three-day period. Since that time, the environment has changed, and extreme uncertainty is impacting global society, our industry, and each one of us in ways that were not even imaginable just two months ago. At Shawcor, we are fortunate to have the support of dedicated employees, supportive shareholders, and supplier partners in these challenging times. Compared to many, we are in a solid position as we have experienced management team, market and geographical diversity, and a value equation through our execution and technology that our customers depend on. Shawcor has been a publicly traded company for more than 50 years, and this is not the first time we've had to work through a downturn.
Recently, the share price of the company has had, has taken a significant decline and it is now at a level that is far below historical levels. In an environment where shareholders seek stability and/or transformational growth, like others operating in the oil field, Shawcor has underperformed. I believe, like we did in previously challenging periods, we will prove to be resilient, and with changes that we are being made, we'll emerge a stronger organization, and it will be reflected in the share price. Today, I'll comment on recent performance and provide insight on the positioning of the company for the near and longer term. Accordingly, I now draw your attention to our disclaimer regarding forward-looking statements. I would like to start my remarks by extending my appreciation to the departing Shawcor Board of Directors and welcoming newly appointed Shawcor Board of Directors.
This year, Shawcor will see four directors departing the board. Charlene Valiquette, who joined the board in March 2005, Jim Derrick, who joined the board in August 2007, John Baldwin, who joined the board in March 2010, and Don Wishart, who joined the board in May 2015 and held the Shawcor chair role since May 2018. Charlene, Jim, John, and Don, thank you for your contribution and support of Shawcor. I wish you all the best in your Shawcor board retirement. Joining the board, we have one recently appointed and one new director, Laura Cillis, who is attending her first Shawcor annual meeting this year, joined the board in December 2019, and Lisa Bahash, who is a new nominee to the board this year.
Laura and Lisa, I look forward to your involvement and welcome you to the company. In 2019, Shawcor celebrated 50 years as a publicly traded company, an outstanding achievement and one that is a testament to the commitment of our past and current employees. Our journey as a public company has continued to evolve. In 2019, we advanced our level of disclosure with changes in the segment we report from 2 to 3: pipeline and pipe services, composite systems, and automotive and industrial, and in sustainability with greater granularity. Starting with HSE, our goal of injury and incident-free continues. Through programs that are focused on activities that have the potential to be catastrophic, such as driving, operating a forklift, and moving reels, pipes, and tanks, we are making progress.
With a total recordable case frequency of 6 per million man-hours worked, 5.1, excluding the newly acquired ZCL Composites operations, we improved from a rate of 6.2 over the prior year. Although we are not IIF yet, we are 60% better than the most recently available U.S. injury rate. We have been reporting our greenhouse gas emissions and energy intensity since 2008, and in 2019, we reduced our total emissions by 14% and emission intensity by 12% over the prior year. I am very proud of the efforts of the organization in making these improvements in health, safety, and environment. Our financial performance fell short of our expectations, primarily due to weak demand in oil and gas drilling completions and the delay of projects related to offshore developments and North American transmission line construction.
Adjusted EBITDA for the year was CAD 136 million on revenue of CAD 1.5 billion. The year included three-quarters of contribution from ZCL Composites, which was acquired in April 2019. We put a tremendous amount of energy and work into the ZCL acquisition and the post-close integration. The business performance has been above our expectations throughout 2019, and the CAD 8 million annualized cost synergy target has been achieved. We correctly identified the recently changing contracting model, which has seen engineering, procurement, and construction companies determining the pipe coating supplier in advance of project sanctioning. This has paid dividends as Shawcor ended the year with CAD 513 million in our 12-month forward-looking backlog and over CAD 240 million in work that was secured with EPCs, pending project final investment decision or FID.
Several major projects were executed in 2019, such as Liza 2, which was awarded to us without tender on the back of our performance on Liza 1, and Barzan Gas, a very challenging offshore field in Qatar that was executed in our Adria, Italy facility. Technology developments also continued to move forward with the introduction of an extension of our composite pipe offering late in the year. This exciting extension brings all the advantages of our core spoolable pipe in 5-inch and larger diameters. A low light during the year was the service quality issue in our Channelview facility. Although we had other potential paths to solve the issue, a key customer was not satisfied with what we had delivered, and we had to ensure that our reputation for technology and execution continues to command a premium in the future.
So we immediately moved to remediate the problem and recoat the work. A very difficult decision and lesson on many fronts, but I do believe our decision to stand behind our work was the correct one. And finally, proceeds from sales, primarily from land surplus to our Western Canada operations and a minority position held in Zedi, created and generated CAD 54 million of cash. These sales transactions, together with tight control of capital expenditures, supported the year-end cash balance of CAD 98 million. Today, we are releasing our Q1 2020 results. Financially, they were very closely aligned to what we communicated in our press release on April 20th. Adjusted EBITDA was CAD 6.2 million on CAD 319 million of revenue.
The quarter experienced a very dynamic swing in sentiment, demand, and priorities as the severity of COVID-19 pandemic increased and our oil and gas operators rapidly cut their capital spending in response to oversupply. I must recognize the leadership of many in Shawcor that assisted in dealing with COVID-19. It was done very well. I would especially like to call out those that were involved in the early days of managing COVID-19 in our China operations, as their knowledge-sharing played a major role in accelerating the implementation of our enterprise-wide response. The quarter was also very positive for HSE. Historically, Q1 is the quarter in the year where we have our poorest results. Although we were not IIF in Q1, a 4.3 injury rate per million man-hours worked is a very good start to the year.
In Q1, we were also recognized by TC Energy for outstanding HSE performance on work that we performed on the Keystone XL project. In Q1, we moved very quickly to change the priority from supporting a ramp-up in activity that we expected to last several years to a completely opposite priority. Faced with the reality that COVID-19 would impact all of our businesses and oversupply of oil and gas would be a double negative for our energy businesses, we acted quickly. As explained in our recent press releases, we are making the hard decisions and are cutting costs and making every effort to preserve and generate cash. In the quarter, North American upstream and automotive-aligned businesses experienced immediate headwinds.
However, our late-cycle oil and gas businesses, primarily those linked to offshore developments, fared better, and at the end of the quarter, the 12-month forward-looking backlog was CAD 575 million, and work secured pending FID was CAD 190 million. Beginning in early March, Shawcor, like many others, experienced a dual impact of COVID-19 and the combination of oversupply and reducing demand for oil and gas. This immediately reduced financial performance and created extreme challenges in forecasting our outlook. At the start of 2020, the COVID-19 pandemic was limited to China. Demand for energy was expected to continue to build and was forecasted to stay artificially in check.
Shawcor was very well positioned to see a step up in performance in the second half of the year, supported by a portfolio that would benefit from the long-awaited return of pipe coating. The years beyond 2020 were looking very strong. As seen in these graphs that capture recent commodity prices, E&P operator activity, automotive manufacturing volumes, and overall United States economic performance, the tide quickly turned in Q1. The change in direction happened very quickly as a limited local problem became a global pandemic and new restrictions and controls quickly disrupted supply chains and impacted demand. Lower energy demand, coupled with a real oversupply of oil and gas caused by major producing regions opening their production taps, drove the price to negative territory, something that has never been seen before.
With limited visibility on the recovery profile, all energy-related companies turned to production mode and slashed spending in an attempt to ensure sustainability. Shawcor, too, is in production mode. With no ability to confidently forecast future demand, our energy has been focused on what we can control. However, as difficult as it is right now for Shawcor, there are elements that position the company to manage and remain an industry leader. The first element that I would suggest will be supportive of Shawcor managing through the present difficulty is the diversity of the markets we serve. With three principal markets, infrastructure, transportation, and energy, Shawcor's revenue opportunity or risk is not aligned to a single market.
We have made several strategic moves since 2014 to leverage our core strengths of material science and execution excellence to expand the products and services we offer into alternative or adjacent markets. This should help mitigate the risk compared to companies that are tied to just one market. On this slide, we've presented the three principal markets we serve and assortment of Shawcor's products and services against those markets. The slide also captures what we are seeing today and our view of how it will play out in each market. Although it's extremely difficult to predict or forecast the future at this time, I do believe you should take comfort that Shawcor is better positioned than many other companies. Starting with infrastructure, we are seeing delayed activity related to municipal programs in Canada, and the US seasonal increase has been visible in both electrical and wastewater.
In the future, we're expecting that the importance of clean drinking water and the management of wastewater will continue to increase and municipal spending will return. Near term, stimulus programs to put people back to work will have a positive impact on investments to build new and repair old electrical, power, and water networks. Planned nuclear refurbishments should also happen as scheduled. In transportation, the automotive sector shutdown has resulted in a significant reduction in demand for our products. However, incoming orders for services and products related to support the retail fuel sector and transit are seeing little impact will remain at high level. As OEMs restart vehicle production, we expect that the demand will gradually return, but it will not return to pre-COVID-19 levels in 2020.
Supported by the strength of our current bookings and the improved economics when prices at the pumps are depressed, convenience store spending will remain at current levels. Also, like infrastructure, we believe that transit, for example, LRT developments, will benefit from governmental stimulus funding. In energy, the dual impact of COVID-19 and oversupply has been swift and substantial. I'll speak in more detail in the next slide, but at a high level, the drop in spending in upstream or finding and development of oil and gas assets has been immediate and severe. Large capital projects that were already underway have so far continued. However, operators are reevaluating their project portfolio, and without question, some projects will be delayed and in some cases, suspended. In the very near term, we do not expect much to change.
The demand for our product and services is not forecasted to recover over the next few quarters. However, projects near completions will continue as we'll select projects that are not tied directly to commodity prices, such as the supply of domestic gas or retaining development rights. Over the longer term, we expect there will have to be market corrections due to many years of underinvestment, and spending will have to return. Finally, this downturn will change the competitive and customer landscape, as not all companies will emerge and industry consolidation should be expected. Historically, Shawcor was heavily dependent on pipe coating, and the results of the company were aligned with the spending of our customers' large capital programs. On this slide, we show the company's current products and services offering across an oil and gas asset life cycle.
Through our diversification efforts within energy, we now have a portfolio weighting that is no longer just late cycle, but now has an exposure across the life cycle. This weighting is expected to result in continued revenue from the late cycle as projects continue, but a decline in early cycle, book and turn-based revenue in a falling commodity price environment like the one we are now experiencing. If commodity prices remain low, the late cycle work will be exhausted. As commodity prices strengthen, the early cycle piece of our portfolio will also strengthen in near real time. The mix of late and early cycle exposure provides a minimum base activity level for Shawcor across the cycle. As this slide demonstrates, even with energy market, the company's portfolio is diversified. In these uncertain times, this diversity is expected to be supportive across a downturn cycle.
Given the extreme uncertainty, we are focused on clear priorities. There are three. Number one, protecting the health of our employees. Number two, executing our customers' orders. Number three, and the final one, reducing the financial burden on the company. Our goal is to emerge from this difficult period a leaner and more profitable company. We have set a target for both cost reductions and cash generation. Some of our actions to achieve the targets are listed on this slide. To date, we have suspended our dividend, reduced our salary workforce by greater than 10%, reduced the compensation of the Shawcor board and top executives, and are committed to close four pipe coating facilities this year. Additionally, we are working hard to exit non-core or dilutive markets and product lines.
In terms of the balance sheet, the company had cash and cash equivalents totaling CAD 86 million and had unutilized lines of credit available to use of CAD 341 million at the quarter end. Based on the actions I have mentioned, our diversified business and current backlog, we expect to generate sufficient cash to fund our operations, working capital requirements, and capital program. Some comfort on near-term revenue should be gained from our backlog as it reflects work we have secured and is scheduled for production in the next 12- months. Our backlog at the end of Q1 2020 was CAD 575 million, an increase from CAD 513 million at the end of Q4 2019.
The increase quarter-over-quarter is largely from pipe coating work being secured, such as the Sangomar project and from our composite tank business, where incoming orders remain strong. Our bid number represents proposals that have been provided to our customers that have firm pricing, terms and conditions, and execution plans. With execution plans in question, work did move from bid to budgetary. Our budgetary is work that we have provided our customers an indicative offer or an estimate on a potential scope of work. Budgetary numbers remain very high at the end of Q1, and if you consider that Browse, a large opportunity in offshore Australia, was removed, there are still many projects visible. One other item I would point out, the work we have secured pending FID was CAD 190 million at the end of Q1.
The reduction from CAD 240 at the end of Q4 2019 was directly related to work that has moved to backlog. We believe that projects we have secured pending FID are more likely to convert to backlog, although with a potential delay in timing than what was first contemplated. In much of my presentation, we have discussed the very near term. At this point, I'd like to highlight the four fundamental opportunities that underpins our future success. The first, the need to move energy and water over distances to match supply and demand, can only be done with investments in developing the source and constructing and maintaining the infrastructure. The second, asset owners are taking a wider view of their responsibility to manage and optimize assets across the entire life cycle.
This creates opportunities in integrity programs using best available technology and data, so operators know the origin, location, and condition of every meter of pipeline or component of their infrastructure build. The third, the requirement of nations to improve their energy security, independence, and a reliable supply chain will continue. It was the factor behind Baltic Pipe, a major gas pipeline delivering Norwegian gas to Poland, that we have recently been awarded. Lastly, there is a need to ensure people have access to energy and water in a way which protects the physical environment and reduces intensity. This creates opportunities such as those associated with electrical vehicles, natural gas, and potable water. I would now like to make a few final points. Over our 50 years, we have worked through multiple cycles and crisis events.
I think of the global financial crisis in 2007 and 2008, and the energy sector decline, which began in 2014. I'm encouraged by our portfolio with its geographic and market diversity, and investors should take note. We are committed to executing our near-term priorities and taking actions to strengthen the financial position of the company. We have secured and visible work in the backlog, and our foundation is solid, and we are supported by long-term fundamentals. I'd now like to close the same way I started, with sincere appreciation to the many people who support the company. I know better days are ahead as we work through today's challenges. That concludes my prepared remarks. We'll now answer questions submitted over the web.
You'll appreciate the difficulties of conducting our annual meeting in this fashion in light of COVID-19 pandemic, including the physical distancing requirements. We, I apologize in advance if we do not get to all your questions. However, we are committed to follow up with you directly with any shareholders whose questions are not answered today. I'll now ask Darrell Ewert to monitor the questions and ask any questions that come up. Darrell?
Mr. Chair, thank you. We have a question from a shareholder, Mr. Smith: Does the company require a change in strategy to improve its share price?
Well, thank you, Mr. Smith, for your question. Interesting, as we all know, the share price responds to many variables. But certainly, currently, there is a significant down pressure on the Shawcor shares as investors look for security or lower-risk opportunities. Shawcor being tied to energy and automotive, certainly doesn't fit this profile right now. I would add, you know, without question, the company is significantly undervalued, and if you look back, or if you look beyond the current double impact of COVID-19 and energy to a point of stabilization, I think it's also undervalued in that perspective. In the future, the strategy of diversification that leverages core strengths touches several markets and has supportive long-term fundamentals, it will improve the share price once the results are there.
The results that demonstrate stability and profit returns will be rewarded in the share price. So I guess, to answer your question, the current strategy is the correct one, but I should highlight, however, today we are focused very, very tactically on the short term, and we are taking the actions to ensure we emerge from the current crisis as a stronger and more profitable company. This will also greatly address the risk concerns the shareholders have, and I would suggest it will also move the share price. So I think share price will be influenced by not only the longer-term strategy, which I think, we strongly believe as a management and a board is the correct one to diversify, but also the short term, as we do tactical, will impact positively the share price.
Mr. Chair, we have another question from a shareholder, and I apologize if I mispronounce your name. It's from Mr. Thalenethan. He says, d ue to current oil storage problems worldwide, does Shawcor have any plan to build large-scale offshore oil storage tanks? Are there any talks with any organizations regarding building large-scale oil tanks?
All right. Again, thank you very much for your question. So Shawcor does have exposure to offshore storage tanks such as those are used in an Enbridge terminal. The exposure that we have is probably primarily in two of our businesses. So one, we have a business that applies coatings to the outside of tanks, storage tanks, which is our CSI business located in Western Canada. And the second, of course, we have the ability to engineer and provide integrity program through Lake Superior Consulting. I think your question may be focused around our composite tank offering. Unfortunately, composite tanks are primarily built for smaller volumes of storage and often are used for underground storage.
Our recent acquisition of ZCL Composites is not really applicable to the current shortage or increasing capacity filling of storage because of the oil storage programs. But it is something that's very applicable, large storage or large tanks in wastewater. Currently, we're working quite hard to bring to the market a solution of expanding our composite tank offering to do massive volumes of storage and compartmentalization of composite tanks. Although not applicable to oil storage problem, it's certainly applicable to opportunities that we see in water waste treatment and storage or buffering of wastewater.
Mr. Chair, we have another question from a shareholder by the name of Mobine. Are there any other diversifications in revenue streams that could come because of this pandemic in the next 12 months?
So I think diversification of revenue streams that are not on the radar, I’m not sure we’re going to discover any. However, what we are seeing is ways in which the oil fields are working today are enhancing the use of digitalization and outsourcing of expertise of remote working. So we are seeing an uptick in activity in Lake Superior Consulting. We are also seeing an uptick of use of our data solutions. But the one that I think is quite interesting for us, which is a diversification that we’ve already spotted, is that there will be an acceleration of water and wastewater. But we think it’s on the back of support, potentially on infrastructure spending from stimulus from governmental programs.
I think governments are struggling, that the long-term fix of paying people to stay at home is not the best way. Eventually, the stimulus programs will go to building of infrastructure, and here we're very well positioned to take advantage of it.
Okay. Another question, Mr. Chair, from a shareholder, Mr. Solomon, w hat is the timing of the Payara project?
Quite interesting, an educated investor. So Payara project, for everybody's information, Payara is also referred to as Liza 3. I commented in my prepared remarks that we did Liza 1 and Liza 2. Liza 3 is an extension of the development of ExxonMobil in Guyana. The project has not reached FID. We feel quite strongly that the project will progress. The elections in Guyana are stalling the official FID. Although I'm very comfortable to say that we are working closely with the EPC that's assigned to the Payara project. And to that point, we received some support to go ahead and work in advance of the pipe actually arriving. So I believe it will be a late Q4, Q1 revenue-generating project. It's within our $190 million secured pending FID.
There's a question here, Mr. Chair, from another shareholder, Mr. Shaw. Summarize what, if any, further cuts to your senior payroll and dividends are planned as your income statement and stock results are at record lows?
I'll take this one. This is Gaston Tano, I'm the CFO. So as you're aware, we have made cuts to board compensation and CEO cuts been cut by 20%, and the rest of the exec committee has been cut by 10%. We have suspended the dividend completely, so we have not declared any further dividends at this point in time. We will, of course, consider further cuts in the future in respect to compensation as we get a further review of our outlook and of our financial performance for the year. But at this point in time, there's nothing planned, but it will be assessed accordingly, based on results.
Mr. Chair, we have another question from a shareholder: Is there anything further on the closing sale of the Pearland facility?
All right. Thank you very much, Mr. Lacy, for your question. So, although we've communicated that we will close four pipe coating facilities in 2020, we've been very, very strategic in not naming the plants that we will close. We do this for multiple reasons. Of course, there's lots of mechanics of closing facilities, and you have to manage communities, employees, customers. But also, it's a competitive advantage because there is still potential work to be won, and as you bid different configurations of plant, signaling that you will close the plant may be a negative in the pursuit of a project. So, although, you know, your question is specific to Pearland, I'll commit again that we're gonna close four facilities, but I wish not to discuss in detail the Pearland project. Okay. If you give us one minute, we'll sort the questions.
We have another question from, Mr. Shaw: What is your total backlog, and specifically, the pipe performance group?
So the total backlog that we communicated is CAD 575 million. CAD 575 million represents the work that we have secured for the forward 12 months, so if you look in a calendar, 12 months with delivery plans. The two components that are in this are pipe coating, and most recently, the backlog was also supported by the acquisition of ZCL Composites. We don't disclose by business the backlog, but I think it's safe if you look at the historical ZCL backlog as it was a publicly traded company, you could estimate that approximately CAD 75 million would be from the ZCL business, and that would leave the remainder for the pipe coating business.
All right. Is there any- We have another question from Mr. Solomon, i n addition to the oil and gas sector, what are the plans to provide services to the clean and/or green energy, i.e., solar, wind, hydro, nuclear, et cetera?
Yeah. So again, Mr. Solomon, thank you for the question. So I think it's good to kinda take a view of our current portfolio and where we actually play in what I would call renewables or greener technology. So first, a market that you've already mentioned, nuclear, is very important for us. It is a substantial supporter of our wire and cable business. And an extension of that, most recently, is we've moved quite strongly in supporting an extension of one of our businesses that has expertise in non-destructive testing in the nuclear space. So we have—we call it a systems business. It's under the technology that we own is based out of the U.K., and they have expertise in the nuclear.
So here, we're delivering both wire and cable product solutions into the nuclear, and we also deliver an NDT or services, equipment into the nuclear business. The most exciting, opportunity for us, with the exception of selling, sleeves into- s o protection, into wind and hydro for cabling, for the masts that, use in wind turbines, we sell protection into that, is really around water. We strongly believe the importance of water, and water as a valued commodity will increase, and that was a substantial strategic move in the rationale to make the acquisition of, of ZCL. And, use in what we see as a opportunity strategically to offer a transportation, so piping and a storage tank solution along the water space. So that is a place where we're quite focused.
I would add one other extension to your question. We call it an oil and gas sector, but I think you're gonna really start to see that there's a separation between oil and gas, and gas more and more is being seen as a transition energy source. And that was the support of the expected wave of LNG that was on the horizon, was really gas as a cleaner energy source for coal or oil-generated electricity. Okay, I think we'll give it a couple more minutes and see if there's any more questions. If not, we'll conclude. All right, I think that- w e're just checking here. Well, I think that concludes the call for today. I thank you very much for everybody attending the meeting, and it certainly is an unusual circumstance.
For everyone on the call, I very much appreciate your support of the company, and I'd like to thank you for your attendance. With that, we'll conclude the annual meeting. Thank you very much.