In This Article:
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Adjusted EBITDA: $176 million for Q3 2024.
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Net Income: $9 million GAAP net income, $0.03 per share; adjusted net income of $11 million, $0.05 per share.
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Total Segment Operating Margin: $220 million for Q3 2024.
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Core SG&A: $26 million for Q3 2024.
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Funds from Operations: $46 million, $0.22 per share for Q3 2024.
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Gross CapEx Forecast for 2025: $815 million, with $745 million funded through committed debt facilities.
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Equity Raise: Completed a $400 million equity raise.
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Debt Refinancing: Refinanced and extended 100% of 2025 corporate debt, 2/3 of 2026 debt into a single class, and extended most revolvers to 2027.
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Construction Update: Brazil's Shell 2 plant 80% complete; Port of Zen project 25% complete, ahead of schedule.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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New Fortress Energy Inc (NASDAQ:NFE) reported Q3 adjusted EBITDA of $176 million, aligning with previous forecasts.
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The company successfully sold and transported its first full cargo to Europe, marking a significant operational milestone.
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NFE completed a $400 million equity raise, enhancing liquidity and extending debt maturities, allowing for strategic growth.
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The Brazil construction projects are on track, with the Shell 2 plant 80% complete and the Port of Zen project ahead of schedule.
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NFE's refinancing efforts have extended debt maturities and increased corporate liquidity by $727 million, providing financial flexibility.
Negative Points
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NFE reduced its Q4 guidance due to maintenance issues affecting FLNG volumes, indicating potential operational challenges.
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The resolution of a FEMA claim remains pending, creating uncertainty around its financial impact.
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The company's ability to forecast away from operations is complex due to large individual transactions and strategic options.
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NFE's Puerto Rico operations are currently underutilized, with a significant gap between potential and actual gas supply.
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The company faces regulatory and administrative hurdles in Mexico, affecting the progress of FLNG 2.
Q & A Highlights
Q: What is the status of FLNG 2, and how are you managing CapEx and regulatory approvals? A: Christopher Guinta, CFO: We have the ability to manage CapEx timing to control cash flows, which is why expected CapEx for FLNG 2 has decreased. Our relationship with Mexico remains strong, and we expect regulatory permits to be issued in the next 90 days. The expected CapEx will resume full spend rates in January, with contracts in place for module and civil construction.