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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

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.