Dec 31, 2023

New Fortress Energy Q4 2023 Earnings Report

Reported record results driven by downstream operating performance, marking a significant shift in the company's financial profile.

Key Takeaways

New Fortress Energy reported a strong fourth quarter and full year 2023, highlighted by significant growth in adjusted EBITDA, net income, and adjusted EPS. The company successfully placed its first Fast LNG unit and secured financing for a second project, while also completing key terminal projects in Brazil.

Adjusted EBITDA reached $388 million for the fourth quarter and $1.3 billion for the full year.

Net income was reported at $215 million for the fourth quarter and $549 million for the full year.

Adjusted EPS stood at $1.01 on a fully diluted basis for the fourth quarter and $2.75 for the full year.

The company completed and put into service Barcarena and Santa Catarina terminals in Brazil.

Total Revenue
$758M
Previous year: $546M
+38.8%
EPS
$1.01
Previous year: $0.87
+16.1%
Adjusted EBITDA
$388M
Previous year: $239M
+61.9%
Gross Profit
$367M
Previous year: $369M
-0.6%
Cash and Equivalents
$311M
Previous year: $675M
-54.0%
Free Cash Flow
-$551M
Previous year: -$123M
+348.3%
Total Assets
$10.5B
Previous year: $7.71B
+36.3%

New Fortress Energy

New Fortress Energy

Forward Guidance

The company anticipates significant growth in Funds from Operations per share in 2024 and expects Gross and Net Capex to decline significantly.

Positive Outlook

  • Illustrative EPS Goal of ~$5.00 for the year ended December 31, 2024
  • Illustrative Funds From Operations/share Goal of ~$6.00 for the year ended December 31, 2024
  • Gross Capex expected to be ~$1,500 million for the year ended December 31, 2024
  • Asset Level Financings expected to be ~$1,250 million for the year ended December 31, 2024
  • Net Capex expected to be ~$250 million for the year ended December 31, 2024

Challenges Ahead

  • Construction of facilities is inherently subject to the risks of cost overruns and delays.
  • The company's ability to export liquefied natural gas depends on our ability to obtain export and other permits from governmental and regulatory agencies.
  • Closing of the financing is subject to the finalization of a credit agreement and the satisfaction of customary closing conditions, and the Company can make no assurance that the financing will be completed.
  • Timeframes include assumptions regarding items that are outside our control, including permitting, weather, supply of equipment and materials, and other potential sources of delay.
  • Actual circumstances could differ materially from the assumptions, and actual performance and results could differ materially from, and there can be no assurance that they will reflect, our corporate goal.