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Mar 31, 2021
New Fortress Energy Q1 2021 Earnings Report
New Fortress Energy reported a net loss for Q1 2021, with revenue remaining stable and the formation of a joint venture focused on renewable and clean fuels.
Key Takeaways
New Fortress Energy reported first quarter 2021 financial results, which included revenue stability compared to the previous quarter but a significant net loss increase primarily due to higher LNG costs and acquisition-related expenses. The company highlighted the formation of a joint venture, Zero Parks, focused on renewable and low-carbon fuels, and declared a dividend of $0.10 per share.
Closed acquisitions of Hygo Energy Transition Ltd. and Golar LNG Partners LP for $5.1 billion enterprise value.
Development projects are advancing on budget and schedule, with Mexico and Nicaragua terminals expected to be operational in Q2 2021.
Launched Zero Parks, a joint venture with Fortress Transportation and Infrastructure focused on renewable and low-carbon fuels.
Completed a private offering of $1.5 billion of senior secured notes due 2026 and closed a $200 million senior secured Revolving Credit Facility.
Forward Guidance
The company is focused on expanding its infrastructure and logistics to deliver integrated energy solutions and transitioning to clean energy.
Positive Outlook
- Advancing development projects on budget and schedule.
- Expecting Mexico and Nicaragua terminals to be operational in Q2 2021.
- Making progress on Fast LNG asset for stable supply at rates below market prices.
- Actively engaging with gas suppliers for long-term, fixed-price feedstock.
- Zero Parks aims to reach FID on its first two projects in 90-120 days.
Challenges Ahead
- Limited operating history
- Inability to refinance outstanding indebtedness
- Cyclical changes in demand for and price of LNG and natural gas
- Competition from third parties
Historical Earnings Impact
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Avg. Return Before/After Earnings
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