Re Middle East exposure
From NTG’s July 11, 2013 quarterly report:
“As in 2011, 2013 has again seen political changes in Egypt. At and subsequent to second quarter end, the NTG Egypt office was closed for approximately one week. As of the date of this report however, there has been no significant effect to the Company’s revenue stream or operations in the region. In 2013, Egypt’s revenue contribution remains approximately 9% of the Company’s revenue (2012-10%). Work continues on recently awarded projects in Egypt and management anticipates business as usual in the region, going forward.”
Footnote 6 of the financial statements also provides a geographic breakdown of its revenues, based on the location of its customers. In the latest quarter, reported July 11, 2013, revenue totaled $2,149,380, of which $180,656 or 8.4% came from Egypt, and $1,968,724 or 91.6% from Saudi Arabia.
Looking at past annual reports, for FY2012 the respective percentages were 7% and 83%; for FY2011, 11% and 60%; for FY2010, there is less detail: 78% of revenues originated outside of North America; and for FY 2009 and earlier years, there is no breakdown.
The bottom line as I see it is:
1) Yes a very large percentage of their business is done in the Middle East, and has been for a number of years, demonstrating their credibility in the region.
2) While there have been disruptions in Egypt, it appears NYG’s important work in Saudi Arabia has continued, probably being handled out of NTG’s office in Riyadh, Saudi Arabia.
3) Re Syria, the civil war raging there this past year does not appear to have affected NTG ops in either Egypt or Saudi Arabia.
4) It is anybody’s guess as to what will happen there in the future.
I'm still holding NTG and am hopeful.