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Sep 30, 2020
New Fortress Energy Q3 2020 Earnings Report
Reported financial results, achieving record quarterly revenue and declaring a fourth quarter dividend.
Key Takeaways
New Fortress Energy reported record quarterly revenue of nearly $137 million, a $40 million increase from Q2 2020. The company's net loss decreased by approximately $130 million from Q2 2020, driven by an approximately $28 million loss on extinguishment of debt and financing costs. The operating margin was over $51 million, representing over a 230% increase from Q2 2020.
Achieved record volumes in Q3 2020, averaging approximately 1.5 million gallons per day.
Construction activities are largely on time and on budget, with projects in Mexico and Nicaragua expected to be operational in the first quarter of 2021.
Announced two significant green hydrogen developments to advance transition to zero emissions.
Issued $1,000 million of 6.75% senior secured notes and declared a fourth quarter dividend of $0.10 per Class A common share.
New Fortress Energy
New Fortress Energy
Forward Guidance
The company expects volumes to increase in the coming months and is targeting over 2.5 million GPD of increased volumes through existing infrastructure.
Positive Outlook
- Targeting over 2.5 million GPD of increased volumes through existing infrastructure.
- Projects in Mexico and Nicaragua should be Operational in the first quarter of 2021
- Construction related activities remain largely on time and on budget
- We see exciting growth opportunities through our two primary growth channels
- Purchased ISO flex equipment, including a 266 foot OSV and are in the process of manufacturing our proprietary manifold
Challenges Ahead
- Risk that development, construction or commissioning schedules will take longer than expected.
- Risk that volumes are able to sell are less than expected due to decreased customer demand or inability to supply.
- Risk that expectations about the price at which LNG is purchased, the price at which LNG is sold, the cost at which LNG is produced, shipped and delivered, and the margin received for the LNG that is sold are not in line with expectations.
- Risks that operating or other costs will increase and expected funding of projects may not be possible.
- Risk that organic and inorganic growth opportunities do not materialize due to inability to reach commercial arrangements on terms that are acceptable or at all.