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Sep 30, 2022

New Fortress Energy Q3 2022 Earnings Report

Reported financial results for the third quarter of 2022.

Key Takeaways

New Fortress Energy reported Q3 2022 Adjusted EBITDA of $291 million and net income of $56 million. Adjusted EPS for the period was $0.41 per share.

Reported Q3 2022 Adjusted EBITDA of $291 million.

Adjusted EPS for the period was $0.41 per share on a fully diluted basis.

On track to achieve Illustrative Adjusted EBITDA Goal of ~$1.1 billion for 2022.

Construction of Fast LNG units is progressing rapidly with the first FLNG unit expected to achieve Mechanical Completion in March 2023 and commence Operations by mid-2023.

Total Revenue
$732M
Previous year: $305M
+140.2%
EPS
$0.41
Previous year: -$0.05
-920.0%
Adjusted EBITDA
$291M
Previous year: $211M
+38.1%
Gross Profit
$296M
Previous year: $134M
+121.1%
Cash and Equivalents
$364M
Previous year: $224M
+62.4%
Free Cash Flow
-$425M
Previous year: -$224M
+90.2%
Total Assets
$7.44B
Previous year: $6.67B
+11.6%

New Fortress Energy

New Fortress Energy

New Fortress Energy Revenue by Segment

Forward Guidance

The company is focused on achieving its Illustrative Adjusted EBITDA Goals, driven primarily by the expected Deployment of FLNG 1 in the first half of 2023, as well as higher expected operating margins and continued LNG portfolio optimization.

Positive Outlook

  • Expected Deployment of FLNG 1 in the first half of 2023.
  • Higher expected operating margins.
  • Continued LNG portfolio optimization.
  • Fast LNG units represent more than half of the world’s expected incremental LNG supply in 2023-2024.
  • Expect five Fast LNG units under Development to add approximately 7+ mtpa of new liquefaction capacity by the end of 2024.

Challenges Ahead

  • Risks associated with the development of new technologies such as the Fast LNG technology.
  • Risks related to the development, construction, completion or commissioning schedule for the facilities.
  • Risks related to the operation and maintenance of facilities and assets.
  • Failure of third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations.
  • Cyclical changes in the demand and price of LNG and natural gas.

Revenue & Expenses

Visualization of income flow from segment revenue to net income