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Jun 30, 2023
New Fortress Energy Q2 2023 Earnings Report
New Fortress Energy reported financial results, achieving several milestones and expecting an increase in earnings.
Key Takeaways
New Fortress Energy reported a net income of $120.1 million and an Adjusted EBITDA of $246.5 million. The company is nearing the end of its large-scale buildout with $3.2 billion of contracted projects entering service over the next 90 days. They anticipate a significant increase in free cash flow as these projects become operational and capital expenditures decrease.
Adjusted EBITDA of $246 million.
Net income of $120 million.
Adjusted EPS of $0.58 on a fully diluted basis.
Expecting an increase in earnings and decrease in capex in the second half of 2023 through 2024.
Revenue by Segment
Forward Guidance
NFE expects an increase in earnings and decrease in capex in the second half of 2023 through 2024 as they place $3.2 billion of invested capital projects online over the next 60 days. Capital expenditures for 2024 are expected to decline to $250 million. Illustrative Adjusted EBITDA Guidance for 2023 revised to $1.6 billion, while 2024 guidance reiterated at $2.4 billion.
Positive Outlook
- Significant increase in free cash flow as projects enter service.
- Capital expenditures to decline.
- Focus on growing cash flows, operational execution, deleveraging, and low cost, high return organic growth opportunities.
- More than 85% of 2024 Adjusted EBITDA Guidance will be generated from core infrastructure.
- Approximately 84% of 2024 Adjusted EBITDA Guidance expected to be generated from investment grade counterparts
Challenges Ahead
- Illustrative Adjusted EBITDA Guidance for 2023 revised to $1.6 billion to reflect lower expected cargo earnings and timing of infrastructure projects coming online.
- No assurance can be given that required permits, approvals and authorizations from governmental and regulatory agencies in connection with the exportation of liquefied natural gas will be received on a timely basis or at all.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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