Jun 30, 2024

New Fortress Energy Q2 2024 Earnings Report

New Fortress Energy's financial performance was marked by a net loss, offset by progress in key projects and strategic transactions.

Key Takeaways

New Fortress Energy reported a net loss of $87 million and Adjusted EBITDA of $120 million for the second quarter of 2024. Results were impacted by delays in placing the FLNG 1 project into service. The company completed its initial Fast LNG asset in Altamira, Mexico, and anticipates growth from its Puerto Rico, Nicaragua, and Brazil assets.

Adjusted EBITDA was $120 million.

Net loss was $87 million.

Adjusted EPS was $(0.41).

FLNG 1 project was completed with First Cargo expected in August 2024.

Total Revenue
$428M
Previous year: $561M
-23.8%
EPS
-$0.41
Previous year: $0.58
-170.7%
Adjusted EBITDA
$120M
Previous year: $247M
-51.3%
Gross Profit
$121M
Previous year: $290M
-58.4%
Cash and Equivalents
$133M
Previous year: $104M
+27.4%
Free Cash Flow
-$444M
Previous year: -$599M
-25.9%
Total Assets
$11.4B
Previous year: $9.14B
+24.9%

New Fortress Energy

New Fortress Energy

Forward Guidance

New Fortress Energy is forecasting Adjusted EBITDA of $1.4-1.5 billion for 2024 and $1.3 billion for 2025.

Positive Outlook

  • FLNG 1 is now in service and performing as expected.
  • Completed sale of power plants for FEMA in Puerto Rico.
  • Awarded 80 TBtu island-wide gas contract in Puerto Rico.
  • Nicaragua terminal and power asset expected to be completed in Q4 2024.
  • 2.2 GW power asset in Barcarena expected to be completed in 2025 and 2026.

Challenges Ahead

  • Adjusted EBITDA in the second quarter was below expectations due to delays in placing FLNG 1 into service.
  • The cost of the delay is approximately $150 million per quarter in lost operating margin.
  • Net loss of $87 million in the second quarter of 2024.
  • Adjusted EPS of $(0.41) on a fully diluted basis in the second quarter of 2024.
  • Funds from Operations per share of $(0.23) on a fully diluted basis in the second quarter of 2024.