Good afternoon. Today's proceedings will now begin.
Good afternoon, and welcome to the annual and special meeting of the shareholders of Shawcor Limited. My name is Derek Blackwood, and I am the chair of the Shawcor board. I will have some remarks later in the meeting, but for now, I will ask Steve Orr, the Chief Executive Officer of Shawcor, to assume the chair for the formal part of today's meeting.
Thank you, Mr. Chair. I would like to welcome all shareholders and guests joining us via our webcast worldwide. Joining me today for the formal part of the meeting are Gaston Tano, Senior Vice President, Finance and CFO of Shawcor Ltd.; Tim Hutzul, Senior Vice President, General Counsel, and Secretary of Shawcor Ltd. As we have previously indicated, in furtherance of our efforts to mitigate health and safety risks arising from the COVID-19 pandemic and to comply with provincial orders limiting the number of persons present at a gathering, we have taken the necessary step 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 item of business of the meeting, I will ask Mr. Hutzul and Mr. Tano to propose and second motions as necessary.
As has been the case at prior Shawcor shareholders' meetings, at the completion of the formal business of the meeting, both the chair of the board, Derek Blackwood, and I will have some remarks, following which management will respond to pre-meeting questions previously submitted. In accordance with the company's bylaws, Tim Hutzul, the corporate secretary of the company, will act as secretary of the meeting. Tim will also act as scrutineer. A notice of this meeting, together with a form of proxy, the management proxy circular, and the 2020 management discussion analysis and consolidated financial statements have been made available to all shareholders in accordance with the requirements of the Canada Business Corporations Act and National Instrument 54-101.
We will dispense with the 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 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.
Report on attendance. We are pleased to report that there are 58 shareholders holding 36,474,004 common shares represented in person or by proxy at this meeting. This represents 51.77% of the 70,451,467 issued and outstanding shares dated May 13, 2021, AST Trust Company.
Thank you, Tim. I'll 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 the shareholders held on May 13, 2020?
Here are the minutes, Mr. Chair.
Thank you, Tim. 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 financial statements, the financial statements and auditor's report. The annual financial statements have been made available to shareholders and are 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 2020 annual financial statements. We will now proceed with the election of directors. I declare the meeting open for nominations. Tim Hutzul will now present the nominations.
Mr. Chair, I nominate Derek Blackwood, Laura Cillis, Kevin Forbes, Alan Hibben, Kevin Nugent, Stephen 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's bylaws require advance notice of additional nominees to the board and no notices were received, I now declare the nominations closed, and Tim Hutzul 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 Derek Blackwood, Laura Cillis, Kevin Forbes, Alan Hibben, Kevin Nugent, Stephen Orr, and Pamela Pierce have duly elected as directors of the corporation. Thank you. The next item of business is the appointment of the auditor for the corporation, and Tim Hutzul has a motion in this regard.
I move that Ernst & Young LLP be appointed auditor of the corporation until the next annual meeting, and the board of directors be authorized to fix the remuneration of the auditor.
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. The next item of business is the advisory vote on the corporation's approach to executive compensation. Tim Hutzul 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 2021 annual and special 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. The next item of business is the approval of the amendment to the Shawcor Ltd. 2001 employee stock option plan to increase the number of common shares reserved and available for issuance thereunder by 800,000. Full particulars of the amendment are set forth in the management proxy circular. Tim Hutzul has a motion in this regard.
I move that, one, the amendments to the Shawcor Ltd. 2001 employee stock option plan, the ESOP, to increase the number of common shares reserved and available for issuance thereunder by 800,000, such that the aggregate number of common shares reserved for issuance under the ESOP shall be increased from 5,630,138- 6,430,138 is hereby authorized and approved. And two, any one officer of the company is hereby authorized and directed to do all such acts and things and to execute and deliver all such instruments and documents as may be necessary or desirable to give full effect to this resolution.
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? The motion is carried, and the resolution approving the amendment to the company's 2001 employee stock option plan in the form set out in the management proxy circular is approved. The next item of business is the approval of the amendment to Shawcor Ltd. employee share unit plan to increase the number of common shares reserved and available for issuance thereunder by 800,000 and to ratify the previous grant of 285,886 unit awards thereunder. Full particulars of the amendment and the prior grant of awards are set forth in the management proxy circular. Tim Hutzul has a motion in this regard.
I move that, one, the amendment to the Shawcor Limited employee share unit plan, the ESOP, to increase the number of common shares reserved and available for issuance thereunder by 800,000, such that the aggregate number of common shares reserved for issuance under the ESOP shall be increased from 1,000,000- 1,800,000 is hereby authorized and approved. Two, the grant of 285,886 unit awards under the ESIP on March 19, 2021, is hereby ratified and approved. And three, any one officer of the company is hereby authorized and directed to do all such acts and things and to execute and deliver all such instruments and documents as may be necessary or desirable to give full effect to this resolution.
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? The motion is carried, and the resolution approving the amendment to the company's 2001 employee share unit plan and ratifying the prior grant of 285,886 unit awards thereunder is in the form set out in the management proxy circular is approved. This concludes the formal business of the meeting, and I declare this annual and special meeting is now terminated. I'll now turn the meeting over to Shawcor's chair.
Hello. Once again, my name is Derek Blackwood, and I have the privilege of being chair of the board of directors of Shawcor. Thank you, Steve, for managing the formal part of the meeting. I would now like to make a few remarks before asking Steve to provide a summary of the company performance for 2020 and the outlook for 2021 and beyond, after which we will take the pre-meeting questions which have been previously submitted by shareholders. First, I would like to thank all shareholders and guests joining us via webcast worldwide. In particular, I would like to thank our long-term shareholders who have stayed with us through the challenges of the downturn in our industry over the last several years and the even more significant challenges resulting from the global pandemic during this last year.
I would also like to thank the past directors and those standing and elected for 2021. I would like to thank the three directors who stood down from the board today: Michael Hanley, a chartered professional accountant from Quebec with a background in banking and the mining industry, who served as both chair and member of the audit committee. Lisa Bahash, a mechanical engineer from Michigan with a background in private equity and the automotive controls industry, who served as a member of the governance and sustainability committee. And Rob Mionis, President and CEO of Celestica Inc., a Toronto-based public company engaged in the global electronics manufacturing and other related businesses. Rob has a background in the manufacturing, aerospace, and semiconductor market, and he served as a member of the Compensation and Organizational Development Committee.
On behalf of the rest of the board, I thank all three for their significant insights and contributions and wish them well in their future endeavors. I would also like to introduce and welcome two new directors to the Shawcor board. Alan Hibben joined the board in June 2020, and this is his first annual meeting. Alan is a chartered professional accountant and a chartered financial analyst from Toronto with over 40 years of experience in the investment and financial services industry. He retired in December 2014 as managing director in the Mergers and Acquisitions Group of RBC Capital Markets after previous roles as head strategy and development at RBC Financial Group and chief executive officer at RBC Capital Partners. Kevin Nugent joined the board at today's annual meeting.
Kevin is an independent businessperson from Calgary who is a chartered professional accountant with over 30 years in the oil and natural gas industry. Kevin has been a corporate director since 2011 and currently serves as a director on other Canadian public and charitable company boards. He brings many of the skill sets and competencies lost to the board with Michael Hanley's departure. Thank you, Alan, and welcome on board, Kevin. At Shawcor, we believe there is a need for continual assessment of board competency, diversity, and size to match the dynamic needs of the company. 2020 was no different, and we took actions appropriate to our situation. As you can see from this table, we have directors who provide strength in depth for the range of competencies we believe to be most relevant to support the current Shawcor businesses.
As I mentioned a moment ago, our recent changes have enhanced the board's financial and capital markets expertise while reducing the overall size of the board to align with the dynamics of the businesses in which we operate. Director competencies and numbers will continue to change as and when required to align with any future changes in the Shawcor businesses. While the board is involved in a broad spectrum of issues, I believe the focus of the board can be categorized into three main areas. First, providing support to management on the dynamics of today. One example of this in 2020 was the establishment of a capital management advisory group. The group comprised four directors with relevant expertise who were able to devote significant additional time to work closely with management on a more frequent basis than normal.
The group provided updates to the other members of the board on a regular basis to enable the entire board to be involved in decisions related to management proposals. Another example was the voluntary reductions in director compensation. This was to demonstrate board alignment with executive management compensation reductions, other SG&A cost reductions, including the release of many personnel. The second focus of the board is in support of determining the near and long-term direction of the company. In 2020, it became very apparent around the end of Q1 that because of the dual impact of the pandemic and the reduction in commodity prices, that improving liquidity and strengthening the balance sheet was one of our near-term priorities. The board, assisted by the advisory group that I mentioned a moment ago, provided support to management to identify and evaluate several alternative options to raise cash from external sources.
This culminated in the recovery and the strength of the balance sheet by the end of the year. Looking to the longer term, the board recognized that while Shawcor has been operating in an ESG-positive way for many years and perhaps more significantly helping many of our clients to operate in ESG-positive ways, we have not made visible our actions and achievements as well as we might. In the past year, we released our inaugural ESG report using the Sustainability Accounting Standards Board framework, and this year we will expand reporting to include the Global Reporting Index framework. In 2020, each director, as well as all key operational management across the company in all of our divisions, participated in a multi-module online ESG training course. This led to the creation of our Purpose and Impact program involving numerous initiatives designed to accelerate advancement of our ESG performance.
We achieved a reduction in absolute tons of carbon released and in carbon intensity. The third focus of the board is continuous improvement. The Shawcor board has implemented a program of continuous improvement over many years. In 2020, in my capacity as chair of the board, I had direct conversations with key representatives of several of Shawcor's major shareholders. Subsequent to these discussions, the Shawcor Governance and Sustainability Committee recommended that our shareholder engagement policy should be amended to provide a way for direct contact with the chair in addition to the company secretary. Details of the new policy can be found on the Shawcor website. In closing, I would like to thank all our stakeholders, our customers, our suppliers, employees and management, lenders, shareholders, and past and current directors.
I would like to recognize the dedication and hard work of all Shawcor employees, including the outstanding leadership of Steve and management during this period of unprecedented uncertainty and challenge. The Shawcor board has full confidence in the future performance of our company and continued confidence in Steve and his newly strengthened management team with the addition of Mike Reeves. I would now like to invite our CEO to address the meeting.
Thank you, Mr. Chair. Today we are hosting Shawcor's 2021 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 second time we've used this format, and although we are doing our best to ensure the technology works, I would ask for your patience should any issues arise. It is unfortunate that we're doing this again in this way, as I look forward to this event each year to meet with many that have been supportive of the company over the years. It has been more than one year since events not within our control translated into extreme uncertainty in the global society, our industry, and for each one of us in ways that were not previously imaginable.
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 an experienced management team, market and geographic diversity, and a value equation through our execution and technology that our customers depend on. Shawcor has been a publicly listed company for more than 51 years, and this is not the first downturn or period of uncertainty that we work through. I believe, as we did in previous challenging periods, we will prove our resilience, and the changes we have and will make will result in a stronger organization, and it will be positively 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. Let me first start with a brief introduction of Shawcor. Shawcor has been serving customers for more than 88 years and, as I stated earlier, has been a publicly traded company on the Toronto Stock Exchange for 51. From the start and through to today, we are a growth-oriented company that strives to leverage a global presence and materials science know-how to deliver value and differentiation in infrastructure, energy, and transportation markets. We have over 5,000 talented and dedicated employees that serve these markets through 11 customer-facing product and service brands, each a leader in their respective markets. Our offering is focused on protecting, inspecting, and managing assets for the long term, and as such, we have a unique positioning as our company's products and services make a significant contribution to the well-being of society.
At the core of the company, embraced by all employees, are three elements: integrity, technology, and execution. Integrity is reflected in our commitment to ensure an incident and injury-free workplace, industry-leading product and service quality, and business ethics that are above reproach. Technology has translated into strong market leadership through our commitment to continuously develop and introduce innovative solutions. Execution is demonstrated in our ability to deliver to our customers as promised. Customers trust Shawcor to execute their most demanding projects across the globe. In 2019, as a result of the company's growth in new revenue streams from our portfolio expansion efforts, we advanced our level of disclosure with changes in the segments we report from 2- to three. Today, Shawcor's three reporting segments are pipeline and pipe services, composite systems, and automotive and industrial.
For the full year 2020, the approximate revenue split by reporting segment was pipeline and pipe services 56%, composite systems 27%, and automotive and industrial 17%. Upon deep review of the brands and the products and services that are hosted in each of the reporting segments, the strength of the diversity of Shawcor's portfolio is visible. The pipeline and pipe services segment's products and service offering is focused on ensuring the safe operation of our customers' midstream pipeline assets. Our technology in pipe coating and non-destructive inspection, coupled with our ability to work anywhere on the globe and the engineering integrity domain knowledge from Lake Superior Consulting, has placed Shawcor as an industry leader in this space. The composite systems segment's products and services leverage extensive knowledge and expertise in the development, testing, and manufacturing of fiber-reinforced polymer solutions.
These solutions have improved performance over legacy materials that our customers have historically used. The core offering in this segment is underground tanks and small-diameter pipe made from composite materials, as well as inspection and management of downhole tubulars. Our tanks are used in retail fuel, water and wastewater, and midstream applications, with our pipe products and downhole tubular services used in oil and gas upstream applications. Shawcor's ability to industrialize composite products and deploy them into our customer operations are why the brands of Flexpipe and Xerxes are leaders in the markets they serve. The automotive and industrial segment's products seal, protect, and insulate. The two main solutions in this segment are heat-shrink products and devices that are used to apply the heat-shrink and engineered wire and cable.
The heat-shrink solutions from DSG-Canusa can be found in automotive applications such as wiring harnesses and in communication applications such as cellular networks. Wire and cable solutions from ShawFlex are used in many applications that run from cabling associated with light rail transit through specialized highly qualified cables for nuclear reactors. Shawcor's know-how in polymers and adhesives and manufacturing excellence, coupled with our proximity to the geographic markets we serve, supports our leading market position for this segment. For Shawcor, like many companies, 2020 was a year like no other. The combination of a virus rapidly growing into a global pandemic and the disconnect between available supply versus expected demand for oil resulted in extreme unprecedented uncertainty on a scale that was unimaginable even a few months before.
As a result of this uncertainty, forward-looking demand of products and services across the full supply chain became less and less visible, and immediate action had to be taken. For example, and very pertinent to Shawcor, was the halting of automotive production, drilling and completion activity, and the delaying or suspending of decisions on projects that would commit multi-year expenditures. On this slide, the graph plots global mobility and GDP of both emerging and advanced economies normalized to Q4 2019, with Shawcor's revenue and adjusted EBITDA for 2019 and 2020. Without question, the dual impact of COVID-19 and weak oil prices can be seen as global economies contracted, populations isolated, and Shawcor's financial performance fell, all in unison. Managing uncertainty is very difficult and requires focus and prioritization to preserve and survive as a viable enterprise. For Shawcor, we were very quick to identify that there were three priorities.
The first was to ensure the health and safety of our employees, not only from the risk ever present from workplace or occupation-related hazards, but also from new risks that were associated with the pandemic. The second priority was the need to deliver to our customers as promised. This was especially important as our customers trust us to deliver. We had secure work, and we knew that there would be outside factors such as supply chain or production interruptions because of COVID-19. The third one was the need to take actions in areas of cost and cash, as revenue could not be accurately predicted, to strengthen the balance sheet and ensure the long-term financial stability of the company. With these priorities in mind, I'll now turn to our response and provide some details.
Our management in 2020 of the global pandemic was aided by practices first implemented by our operations in China in late 2019, pre-pandemic declaration. As a result of this advanced exposure to virus mitigation procedures and strategies, our global operations had a head start in the prevention and containment of workplace transmissions of the virus before actions were suggested or imposed by local health agencies and regulators. In the workplace, I believe a commitment to injury and incident-free and a program that is focused on those activities that have the greatest potential to maim and/or kill support the positive improvement in the company's injury rate year-over-year. Although any injury is one too many, 3.5 recordable per million man-hours worked is a solid result and a record year for Shawcor.
It is also a recognition of efforts made in a very challenging time for those that choose to work for Shawcor. The challenges of delivering as promised to our customers in 2020 were certainly increased as all businesses were dealing with uncertainty in demand, unexpected production interruptions, and influx staffing levels. In terms of activity, as the year progressed, it was apparent that work that we had secured in 2019 and early 2020 before the crisis would remain firm, and an increase in demand in our book and term businesses in the fourth quarter was very likely. Referencing the three-unit examples on this slide and considering the uneven output profile of the year and the changes made in the markets being served in the case of pipe coating, I believe our customers would attest that we managed very well to meet their expectations.
As I highlighted, one of the three priorities for 2020 that we set was to regain confidence in the long-term financial stability of the company. To do so, we focused and acted on elements that we could control that would reduce cost and/or conserve cash. At Shawcor, we pride ourselves on our ability to execute through a structured approach that leverages program management and clear ownership to accomplish the impossible. Our strength in this area was leveraged fully in the year to reduce salaried headcount by more than 22%, close 6 fixed pipe coating facilities, optimize yearly capital spending down to CAD 24 million, reduce working capital by CAD 27 million, and capture CAD 130 million from the divestment and sale of both businesses and assets.
As a result of these actions taken, the company now expects this quarterly normalized and sustainable SG&A run rate will be less than CAD 60 million going forward, which includes target incentive compensation costs. These actions also decreased the net debt of the company by CAD 122 million from the start of the year. Now turning to the full-year results for 2020 for HSE and financial performance. The company had zero fatalities for the year and an injury recordable rate of 3.5 per million man-hours worked. As I mentioned earlier, this injury rate was a record for the company. Even in the middle of the global pandemic, we demonstrated our commitment to safety by conducting 10 HSE audits in the year, similar to the previous year, albeit with different methods due to the pandemic.
In 2020, Shawcor released our first sustainability report, and in that document, we captured and disclosed greenhouse gas emissions and emission intensity. Emissions at 97,000 tons was a 9% decrease from the previous year, and intensity at 65 tons per million dollars of revenue was a 14.5% decrease. 2020 adjusted EBITDA was CAD 74 million on CAD 1.18 billion in revenue. Adjusted EBITDA was 45% lower on 21% lower revenue compared to 2019. At the end of the year, backlog was CAD 453 million, and cash and deposits was CAD 215 million. Today, we are releasing our Q1 2021 results. The quarter was positive for HSE. Historically, Q1 is a quarter in the year where we have the poorest results. Although we were not IIF in Q1, a 3.5 injury rate per million man-hours worked is a very good start to the year and on par with the record performance of 2020.
The company generated Adjusted EBITDA of CAD 19 million on revenue of CAD 279 million. Revenue declined compared to Q4 2020, driven by normal seasonal slowdown in composite tank shipments and lower levels of pipe coating activity, which was expected but amplified by impacts from acute U.S. winter weather and projects' timing delays. Conversely, continued strong demand for heat-shrink tubing and premium wire and cable products drove a record quarter within the automotive and industrial segment. Turning to backlog, at quarter end, the company's backlog stood at CAD 521 million, an increase of CAD 68 million or 15% from the end of 2020. This growth was the result of very strong underground storage tank orders, lower than expected backlog burn within our pipe coating business, and an increase in orders within other parts of the organization. Within the quarter, the Leith, Scotland pipe coating facility closure was initiated, and additional cost reductions were implemented.
The company now expects quarterly SG&A run rate, including incentives, to be CAD 500 million, down from the CAD 60 million communicated last quarter. As a result of booked work, strengthening demand in our book and turn business, and cost measures taken, Q1 is set to be the lowest quarter for the year, and we remain confident that 2021 full-year Adjusted EBITDA will be higher than 2020. Currently, there are many indicators and points of reference supporting a swing to the positive for the outlook for Shawcor after many quarters of severe headwinds. Today, the base business has seen positive supportive elements from a resilient retail fuel market, recovery plus catalysts in automotive, and the gradual return of spending of exploration production operators.
Additionally, although not in the immediate term, the base business is expected to benefit from the additional demand as government stimulus programs spend on updating aged infrastructure and from our increased participation in water and wastewater markets. Still important to Shawcor is the outlook for large capital projects. Today, after several quarters of uncertainty, we are increasingly optimistic that projects will move forward and Shawcor will win its share of targeted opportunities. The drivers behind recent movements of projects include the recent strengthening of stability in commodity prices, but also specific individual factors such as domestic supply or market share protection, as is the case behind several projects in the Middle East. Time-bound incentives and/or fiscal terms, as is the case in the Norwegian sector of the North Sea and Guyana offshore.
Oil and gas-based economies developing nationally held reserves, for example, in Brazil, and the need to address reservoirs that are now depleted by developing new or tying in additional reserves. Each quarter, we provide details of work we have secured, work we are in detailed discussions with our customer on, and opportunities that we have visibility of in our backlog, conditional awards, bid, and budgetary numbers. At the end of Q1, our 12-month backlog was CAD 521 million, and bid was over CAD 800 million. Included in the CAD 800 million bid number is over CAD 100 million of conditional awards. Currently, budgetary is over CAD 1 billion. These numbers are supportive of near-term performance and future opportunities that are present from our businesses tied to customers' capital spend, such as offshore pipe coating. In much of my presentation, we have discussed the very near term.
At this point, I'd like to highlight four fundamental opportunities that underpin our future success. The first, the need to move energy and water over vast 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 the responsibility to manage and optimize assets across the entire life cycle. This creates opportunities and integrity programs using the 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 supply chain reliability will continue. 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 electric vehicles, natural gas, and potable water. I would now like to make a few final points on Shawcor. The difficult actions taken in 2020 in the midst of unprecedented crisis have resulted in Shawcor being a lean organization that has retained its leadership position in the markets we serve. Shawcor's diversified portfolio of late and early cycle oil and gas and non-oil and gas businesses provides a hedge that will benefit in uncertain times. Shawcor is proving the resilience of a base business and is positioned to participate in large capital programs of our customers. Shawcor's future success continues to be underpinned by supportive long-term fundamentals that will drive investments in energy, transportation, and infrastructure. And finally, Shawcor can execute.
I'll close my prepared remarks the same way as I started with my sincere appreciation to the many stakeholders who support the company. On that note, I'll turn it over to our secretary, Tim Hutzul, to coordinate any questions that have previously been submitted. Tim.
We will now answer those questions which were previously submitted before the meeting in accordance with the directions provided. Does Shawcor have any products in their pipeline portfolio that can be used for carbon capture and storage? If there are some products, is this something that could be an additional revenue stream in the future?
I'd like to thank for the question to be submitted. Shawcor does currently have products and services that are used in the applications associated with carbon capture and storage, or CCS, as many refer to it as.
As you can imagine, CO2 is very corrosive when any water is present, and this makes the integrity of steel pipelines used to transport a concern. Pipe coating is part of any strategy to address this concern, and Shawcor has solutions. By way of example, Shawcor provided pipe coating for a 100 km CCS pipeline in Western Canada recently. Additionally, when CO2 is transported in liquid state, it requires robust cooling solutions. Here, we see opportunities for our insulation coatings, especially in Europe. Outside of pipe coating, we have opportunities within our engineering services and integrity management divisions. By way of example, we have recently been selected to complete girth weld inspection of a CO2 pipeline in the U.S. associated with injecting CO2. In the future, I expect that transportation and storage of CO2, like hydrogen, will require the use of fit-for-service technology that leverages new material.
Here, I am the most excited as engineered composites certainly have improved performance over legacy material, steel, that is being used today. Shawcor is certainly well-positioned to bring these technologies to market. Tim, I'd ask you to confirm if there's any more questions.
There are no additional questions.
Well, with no additional questions, this completes our meeting today. Thank you. I would like to thank everyone who attended the webcast this afternoon.