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Dec 31, 2020
New Fortress Energy Q4 2020 Earnings Report
New Fortress Energy reported mixed Q4 2020 results with increased revenue but a slight net loss.
Key Takeaways
New Fortress Energy reported a record quarterly revenue of $145.7 million, an increase of $8.8 million from Q3 2020. The company's net loss was $0.5 million, a significant improvement from the Q3 2020 net loss of $36.7 million. Operating Margin was over $60 million, representing 42% of revenue.
Record quarterly revenue of $145.7 million, up from Q3 2020.
Net loss significantly reduced to $0.5 million from $36.7 million in Q3 2020.
Operating Margin was over $60 million, representing 42% of revenue in Q4 2020.
Announced FID on 'Fast LNG' solution expected to be operational by end of 2022.
New Fortress Energy
New Fortress Energy
Forward Guidance
New Fortress Energy is focused on expanding its LNG infrastructure and operations. The company is developing long-term fixed price LNG supply and expects its projects in Mexico and Nicaragua to be operational in Q2 2021. NFE is also developing a 'Fast LNG' project anticipated to be operational by the end of 2022.
Positive Outlook
- Developing long-term fixed price LNG supply through Golar Hilli LLC acquisition.
- Announced FID on floating liquefaction solution ('Fast LNG') expected to be Operational by end of 2022.
- Projects in Mexico and Nicaragua are expected to be Operational in Q2 2021.
- Awarded supply contract by CFE to supply ~250k gallons per day (GPD) of LNG.
- Finalizing a framework agreement for a terminal in Southeast Asia expected to begin operations in 2H 2021.
Challenges Ahead
- Risk that development, construction, or commissioning schedules will take longer than expected.
- Risk that volumes sold are less than expected due to decreased customer demand or inability to supply.
- Risk that expectations about LNG purchase price, selling price, production cost, shipping cost, and margin are not met.
- Risk that the Fast LNG project may not be developed on the expected timeline or at all.
- Risk that operating or other costs will increase, and expected project funding may not be possible.