New Fortress Energy Announces Second Quarter 2022 Results
New Fortress Energy reported Q2 2022 Adjusted EBITDA of $283 million, with a trailing twelve months total of $1.05 billion. Net loss for Q2 2022 was $(178) million, while trailing twelve months net income stood at $197 million. Adjusted EPS was $0.69 per share, offset by a $315 million non-cash impairment charge. The company is on track for an illustrative Adjusted EBITDA goal of $1 billion for 2022 and $1.5 billion for 2023. NFE's FLNG deployment expanded from one to three Gulf of Mexico locations, contributing approximately 8 MTPA capacity.
- Achieved Q2 2022 Adjusted EBITDA of $283 million.
- On track for an Adjusted EBITDA goal of $1 billion in 2022 and $1.5 billion in 2023.
- Expanded FLNG deployment opportunities to three locations, adding 8 MTPA capacity.
- Nearing completion of key terminals and initiating construction of a power plant in Brazil.
- Secured over $2 billion in liquidity and fully funded on committed capital needs.
- Reported a net loss of $(178) million for Q2 2022.
- Incurs a non-cash impairment charge of $315 million affecting EPS.
Summary Highlights
-
Pleased to report Q2 2022 Adjusted EBITDA(1) of
$283 million $1.05 billion June 30, 2022 . NFE's net (loss) income for Q2 2022 and trailing twelve months was$(178) million $197 million -
Adjusted EPS for the period was
$0.69 $(0.81) $315 million -
On track to achieve Illustrative Adjusted EBITDA Goal(3) of
$1 $1 -
Our FLNG commercial and project and teams had a very busy and productive quarter, which we look forward to discussing on our Q2 earnings call.
-
Increased FLNG deployment opportunities from one
Gulf of Mexico location to three (offshoreLouisiana ,Altamira , and Lakach(5)) representing approximately 8 MTPA of capacity ramping from 1H23 through 2H24(7).
-
Increased FLNG deployment opportunities from one
-
Our FLNG commercial and project and teams had a very busy and productive quarter, which we look forward to discussing on our Q2 earnings call.
-
Our commitment to our customers and commercial activities at our downstream terminals remains robust.
-
In
Brazil - nearing completion of our Barcarena andSanta Catarina terminals and began construction on the 605 MW Barcarena power plant. -
In
Mexico – signed an LOI to expand existing gas supply contract with CFE(5) and extend term to 10 years. -
In
Europe – made significant progress on permits inIreland and leased one of our FSRUs to a new terminal inthe Netherlands (8) expected to start up Q3 2022(7).
-
In
-
Achieved key balance sheet and liquidity objectives, securing over
$2.0 billion $250 million - Fully-funded on committed capital needs for Fast LNG, with additional developments capable of being funded through operating cash flow(9).
- Continued to position Zero Parks hydrogen business favorably amid increasingly positive policy environment; expect to progress multiple industrial-scale green and blue hydrogen projects in the near future.
-
NFE’s Board of Directors approved a dividend of
$0.10 September 7, 2022 and a payment date ofSeptember 21, 2022 .
Financial Highlights
|
Three Months Ended |
||||||
(in millions, except Average Volumes) |
|
|
|
||||
Revenues |
$ |
505.1 |
|
$ |
584.9 |
|
|
Net income (loss) |
$ |
241.2 |
|
$ |
(178.4 |
) |
|
Adjusted net income |
$ |
241.2 |
|
$ |
145.7 |
|
|
Terminals and Infrastructure Segment Operating Margin(6) |
$ |
211.1 |
|
$ |
237.7 |
|
|
Ships Segment Operating Margin(6) |
$ |
89.0 |
|
$ |
89.7 |
|
|
Total Segment Operating Margin(6) |
$ |
300.1 |
|
$ |
327.4 |
|
|
Adjusted EBITDA(1) |
$ |
257.7 |
|
$ |
283.5 |
|
|
Please refer to our Q2 2022 Investor Presentation (the “Presentation”) for further information about the following terms:
- “Adjusted EBITDA” see definition and reconciliation of this non-GAAP measure in the exhibits to this press release.
-
Refers to the sale by NFE and Ebrasil Energia Ltda. and its shareholders (“Ebrasil”) to Eneva S.A. (“Eneva”) of
100% of the equity interests of thePorto de Sergipe Power Plant, including100% of the shares of Centrais Elétricas de Sergipe Participações S.A. (“CELSEPAR”), which owns100% of the equity interests of the Sergipe Power Plant, and Centrais ElétricasBarra dos Coqueiros S.A . (“CEBARRA”), which owns 1.7 GW of expansion rights adjacent to the Sergipe Power Plant. Closing of this transaction is subject to certain conditions precedent some of which are outside of our control. There can be no assurance that closing will be attained within the timeline that we expect or at all. -
“Illustrative Adjusted EBITDA Goal” is based on the "Illustrative Total Segment Operating Margin Goal" less illustrative Core SGA assumed to be at
$172m m in 2022 and$145m m for all periods 2023 onward including the pro rata share of Core SG&A from unconsolidated entities. “Illustrative Total Segment Operating Margin Goal,” or “Illustrative Future Goal” means our goal for Total Segment Operating Margin under certain illustrative conditions. Please refer to this explanation for all uses of this term. This goal reflects the volumes of LNG that it is our goal to sell under binding contracts multiplied by the average price per unit at which we expect to price LNG deliveries, including both fuel sales and capacity charges or other fixed fees, less the cost per unit at which we expect to purchase or produce and deliver such LNG or natural gas, including the cost to (i) purchase natural gas, liquefy it, and transport it to one of our terminals or purchase LNG in strip cargos or on the spot market, (ii) transfer the LNG into an appropriate ship and transport it to our terminals or facilities, (iii) deliver the LNG, regasify it to natural gas and deliver it to our customers or our power plants and (iv) maintain and operate our terminals, facilities and power plants. For vessels chartered to third parties, this illustration reflects the revenue from ships chartered to third parties, capacity and tolling arrangements, and other fixed fees, less the cost to operate and maintain each ship, in each case based on contracted amounts for ship charters, capacity and tolling fees, and industry standard costs for operation and maintenance. There can be no assurance that the costs of purchasing or producing LNG, transporting the LNG and maintaining and operating our terminals and facilities will result in the Illustrative Total Segment Operating Margin Goal reflected. For the purpose of this presentation, we have assumed an average Total Segment Operating Margin between$7.42 $19.75 $17.30 $12.74 $10.44 Pennsylvania or Fast LNG (“FLNG”) does not exist, and those costs will be distributed over the larger volumes. For Hygo + Suape assets we assume an average delivered cost of gas of$17.61 $16.21 Sergipe . Hygo +Sergipe incremental assets include every terminal and power plant other thanSergipe , and we assume all are Operational and earning revenue through fuel sales and capacity charges or other fixed fees. This illustration reflects our effective share of operating margin from Sergipe Power Plant. For Vessels chartered to third parties, this illustration reflects the revenue from ships chartered to third parties, capacity and tolling arrangements, and other fixed fees, less the cost to operate and maintain each ship, in each case based on contracted amounts for ship charters, capacity and tolling fees, and industry standard costs for operation and maintenance. We assume an average Total Segment Operating Margin of up to$211 k$4.31 $6.17 - Refers to sale of 11 LNG infrastructure vessels owned by NFE to a newly formed joint venture between funds managed by Apollo and NFE. Closing of this transaction is subject to certain conditions precedent some of which are outside of our control. There can be no assurance that closing will be attained within the timeline that we expect or at all.
-
In discussions with Petróleos
Mexicanos (“Pemex”) to form a long-term strategic partnership for the joint development of the Lakach deepwater natural gas field and with Comisión Federal de Electricidad (“CFE”) to form a strategic alliance supported in connection with a new LNG hub off the coast ofAltamira, Tamaulipas , with CFE. Represent letters of intent, whether signed or under discussions. There can be no assurance that binding definitive agreements will be entered into related to such discussions or projects or the terms of any such agreements. -
“Total Segment Operating Margin” is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. Terminals and Infrastructure Segment Operating Margin includes our effective share of revenue, expenses and operating margin attributable to our
50% ownership of Centrais Elétricas de Sergipe Participações S.A. (“CELSEPAR”). Ships Segment Operating Margin includes our effective share of revenue, expenses and operating margin attributable to our ownership of50% of the common units ofHilli LLC .Hilli LLC ownsGolar Hilli Corporation (“Hilli Corp”), the disponent owner of the Hilli. - Lead times and expected development times used herein indicate our internal evaluations of a project’s expected timeline. They refer to us completing certain stages of projects within a timeframe and within a spectrum of budget parameters that, when taken as a whole, are substantially consistent with our business model. These timeframes include assumptions regarding items that are outside our control, including permitting, weather, and other potential sources of delay. To the extent that projects have not yet started or are currently under development, we can make no assurance that such projects are on track within the timeline parameters we establish. Additionally, the construction of facilities is inherently subject to the risks of cost overruns and delays. If we are unable to construct, commission and operate all of our facilities as expected, or, when and if constructed, they do not accomplish our goals, or if we experience delays or cost overruns in construction, estimates regarding timelines, budget and savings could be materially and adversely affected.
-
Refers to binding agreement executed with
N.V. Nederlandse Gasunie (“Gasunie”) for a five-year FSRU charter agreement will begin in Q3 2022 and provide storage and regasification capacity for Gasunie’s new LNG import terminal in the port Eemshaven,the Netherlands . The binding FSRU charter agreement is subject to the execution of definitive documentation. We cannot assure you if or when we will enter into binding definitive agreements, on time or on acceptable terms to us. -
Represents management’s expectations regarding the funding of the committed expenditures reflected and the estimated expenditures. It assumes the
Sergipe and Apollo transaction have closed and we have received the anticipated proceeds. There can be no assurance that closing will be attained within the timeline that we expect or at all. The estimated expenditures, including those related to project costs, are not based on generally accepted accounting principles and should not be relied upon for any reason. There is no guarantee that we will reach our goals for funding the estimated expenditures and actual results may differ from our expectations.
Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investors section of New Fortress Energy’s website, www.newfortressenergy.com, and the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which is available on the Company’s website. Nothing on our website is included or incorporated by reference herein.
Earnings Conference Call
Management will host a conference call on
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at https://event.webcasts.com/starthere.jsp?ei=1558536&tp_key=f1cc0198ce and will be located on our company website at www.newfortressenergy.com within the "Investors" tab under “Events & Presentations”. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast. A replay of the conference call will be available at the same website location shortly after the conclusion of the live call.
About
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” including: our ability to close the transactions and receive funds within the expected timeline, in the amounts anticipated or at all; ability to maintain our expected development timelines; expectations regarding ability to construct, complete and commission our projects on time and within budget to derive expected goals and benefits; execution of definitive documentation; expected or illustrative financial metrics or goals; successful positioning of Zero Parks hydrogen in policy environment and development of green and blue hydrogen projects in the near future; and the implementation and success of our financing alternatives, including any asset sales. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. These forward-looking statements represent the Company’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: illustrative financial metrics and other similar metrics, including goals and expected financial growth; our ability to execute definitive documentation in connection with letters of intent or similar instruments; expectations for taking FID on our projects; the development, construction, completion and operation of the facilities on time, within budget and within the expected specifications and design; ability to maintain our expected development timelines; our ability to close our
Exhibits – Financial Statements
Condensed Consolidated Statements of Operations
For the three months ended
(Unaudited, in thousands of |
|||||||
|
For the Three Months Ended |
||||||
|
2022 |
|
|
||||
Revenues |
|
|
|
||||
Operating revenue |
$ |
400,075 |
|
|
$ |
497,240 |
|
Vessel charter revenue |
|
92,420 |
|
|
|
75,134 |
|
Other revenue |
|
12,623 |
|
|
|
12,481 |
|
Total revenues |
|
505,118 |
|
|
|
584,855 |
|
|
|
|
|
||||
Operating expenses |
|
|
|
||||
Cost of sales |
|
208,298 |
|
|
|
272,401 |
|
Vessel operating expenses |
|
22,964 |
|
|
|
18,628 |
|
Operations and maintenance |
|
23,168 |
|
|
|
20,490 |
|
Selling, general and administrative |
|
48,041 |
|
|
|
50,310 |
|
Transaction and integration costs |
|
1,901 |
|
|
|
4,866 |
|
Depreciation and amortization |
|
34,290 |
|
|
|
36,356 |
|
Asset impairment expense |
|
— |
|
|
|
48,109 |
|
Total operating expenses |
|
338,662 |
|
|
|
451,160 |
|
Operating income |
|
166,456 |
|
|
|
133,695 |
|
Interest expense |
|
44,916 |
|
|
|
47,840 |
|
Other (income), net |
|
(19,725 |
) |
|
|
(22,102 |
) |
Net income before income (loss) from equity method investments and income taxes |
|
141,265 |
|
|
|
107,957 |
|
Income (loss) from equity method investments |
|
50,235 |
|
|
|
(372,927 |
) |
Tax benefit |
|
(49,681 |
) |
|
|
(86,539 |
) |
Net income (loss) |
|
241,181 |
|
|
|
(178,431 |
) |
Net income attributable to non-controlling interest |
|
(2,912 |
) |
|
|
8,666 |
|
Net income (loss) attributable to stockholders |
$ |
238,269 |
|
|
$ |
(169,765 |
) |
|
|
|
|
||||
Net income (loss) per share – basic |
$ |
1.14 |
|
|
$ |
(0.81 |
) |
Net income (loss) per share – diluted |
$ |
1.13 |
|
|
$ |
(0.81 |
) |
|
|
|
|
||||
Weighted average number of shares outstanding – basic |
|
209,928,070 |
|
|
|
209,669,188 |
|
Weighted average number of shares outstanding – diluted |
|
210,082,295 |
|
|
|
209,669,188 |
|
Adjusted EBITDA
For the three months ended
(Unaudited, in thousands of
Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to income/(loss) from operations, net income/(loss), cash flow from operating activities or any other measure of performance or liquidity derived in accordance with GAAP. We believe this non-GAAP measure, as we have defined it, offers a useful supplemental view of the overall operation of our business in evaluating the effectiveness of our ongoing operating performance in a manner that is consistent with metrics used for management’s evaluation of the Company’s overall performance and to compensate employees. We believe that Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items such as interest expense, taxes, depreciation, and amortization which vary substantially from company to company depending on capital structure, the method by which assets were acquired and depreciation policies. Further, we exclude certain items from our SG&A not otherwise indicative of ongoing operating performance.
We calculate Adjusted EBITDA as net income, plus transaction and integration costs, contract termination charges and loss on mitigations sales, depreciation and amortization, asset impairment expense, interest expense, net, other (income), net, loss on extinguishment of debt, changes in fair value of non-hedge derivative instruments and contingent consideration, tax expense, and adjusting for certain items from our SG&A not otherwise indicative of ongoing operating performance, including non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost to pursue new business opportunities and expenses associated with changes to our corporate structure, plus our pro rata share of Adjusted EBITDA from unconsolidated entities, less the impact of equity in earnings (losses) of unconsolidated entities.
Adjusted EBITDA is mathematically equivalent to our Total Segment Operating Margin, as reported in the segment disclosures within our financial statements, minus Core SG&A, including our pro rata share of such expenses of unconsolidated entities. Core SG&A is defined as total SG&A adjusted for non-cash share-based compensation and severance expense, non-capitalizable development expenses, cost of exploring new business opportunities and expenses associated with changes to our corporate structure. Core SG&A excludes certain items from our SG&A not otherwise indicative of ongoing operating performance.
The principal limitation of this non-GAAP measure is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measure to our GAAP net income/(loss), and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA does not have a standardized meaning, and different companies may use different Adjusted EBITDA definitions. Therefore, Adjusted EBITDA may not be necessarily comparable to similarly titled measures reported by other companies. Moreover, our definition of Adjusted EBITDA may not necessarily be the same as those we use for purposes of establishing covenant compliance under our financing agreements or for other purposes. Adjusted EBITDA should not be construed as alternatives to net income (loss) and diluted earnings (loss) per share attributable to
The following table sets forth a reconciliation of net (loss) income to Adjusted EBITDA for the three months ended
(in thousands) |
|
Three Months
|
|
Three Months
|
|
Three Months
|
|
Three Months
|
|
Twelve Months
|
||||||||||
Total Segment Operating Margin |
|
$ |
210,478 |
|
|
$ |
373,150 |
|
|
$ |
300,083 |
|
|
$ |
327,448 |
|
|
$ |
1,211,159 |
|
Less: Core SG&A (see definition above) |
|
|
38,496 |
|
|
|
38,033 |
|
|
|
40,960 |
|
|
|
42,040 |
|
|
|
159,529 |
|
Less: Pro rata share Core SG&A from unconsolidated entities |
|
|
2,047 |
|
|
|
1,110 |
|
|
|
1,390 |
|
|
|
1,914 |
|
|
|
6,461 |
|
Adjusted EBITDA |
|
$ |
169,935 |
|
|
$ |
334,007 |
|
|
$ |
257,733 |
|
|
$ |
283,494 |
|
|
$ |
1,045,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
|
$ |
(17,769 |
) |
|
$ |
151,723 |
|
|
$ |
241,181 |
|
|
$ |
(178,431 |
) |
|
$ |
196,704 |
|
Add: Interest expense, net |
|
|
57,595 |
|
|
|
46,567 |
|
|
|
44,916 |
|
|
|
47,840 |
|
|
|
196,918 |
|
Add: Tax provision (benefit) |
|
|
3,526 |
|
|
|
5,403 |
|
|
|
(49,681 |
) |
|
|
(86,539 |
) |
|
|
(127,291 |
) |
Add: Depreciation and amortization |
|
|
31,194 |
|
|
|
30,297 |
|
|
|
34,290 |
|
|
|
36,356 |
|
|
|
132,137 |
|
Add: Asset impairment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48,109 |
|
|
|
48,109 |
|
Add: SG&A items excluded from Core SG&A (see definition above) |
|
|
8,306 |
|
|
|
36,894 |
|
|
|
7,081 |
|
|
|
8,270 |
|
|
|
60,551 |
|
Add: Transaction and integration costs |
|
|
1,848 |
|
|
|
2,107 |
|
|
|
1,901 |
|
|
|
4,866 |
|
|
|
10,722 |
|
Add: Other (income), net |
|
|
(5,400 |
) |
|
|
(3,692 |
) |
|
|
(19,725 |
) |
|
|
(22,102 |
) |
|
|
(50,919 |
) |
Add: Changes in fair value of non-hedge derivative instruments and contingent consideration |
|
|
2,316 |
|
|
|
472 |
|
|
|
(2,492 |
) |
|
|
2,247 |
|
|
|
2,543 |
|
Add: Loss on extinguishment of debt, net |
|
|
— |
|
|
|
10,975 |
|
|
|
— |
|
|
|
— |
|
|
|
10,975 |
|
Add: Pro rata share of Adjusted EBITDA from unconsolidated entities(1) |
|
|
72,336 |
|
|
|
44,746 |
|
|
|
50,497 |
|
|
|
49,951 |
|
|
|
217,530 |
|
Less: Loss (income) from equity method investments |
|
|
15,983 |
|
|
|
8,515 |
|
|
|
(50,235 |
) |
|
|
372,927 |
|
|
|
347,190 |
|
Adjusted EBITDA |
|
$ |
169,935 |
|
|
$ |
334,007 |
|
|
$ |
257,733 |
|
|
$ |
283,494 |
|
|
$ |
1,045,169 |
|
(1) |
Includes the Company’s effective share of Adjusted EBITDA of CELSEPAR of |
Segment Operating Margin
(Unaudited, in thousands of
Performance of our two segments, Terminals and Infrastructure and Ships, is evaluated based on Segment Operating Margin. Segment Operating Margin reconciles to Consolidated Segment Operating Margin as reflected below, which is a non-GAAP measure. We define Consolidated Segment Operating Margin as GAAP net income (loss), adjusted for selling, general and administrative expense, transaction and integration costs, contract termination charges and loss on mitigation sales, depreciation and amortization, asset impairment expense, interest expense, other (income) expense, loss on extinguishment of debt, net, (loss) income from equity method investments and tax (benefit) expense. Consolidated Segment Operating Margin is mathematically equivalent to Revenue minus Cost of sales minus Operations and maintenance minus Vessel operating expenses, each as reported in our financial statements.
Three Months Ended |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships ⁽²⁾ |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
237,712 |
|
$ |
89,736 |
|
$ |
327,448 |
|
$ |
(54,112 |
) |
|
$ |
273,336 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
50,310 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
4,866 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
36,356 |
|
|||||
Asset impairment expense |
|
|
|
|
|
|
|
|
|
48,109 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
47,840 |
|
|||||
Other (income) expense, net |
|
|
|
|
|
|
|
|
|
(22,102 |
) |
|||||
Loss from equity method investments |
|
|
|
|
|
|
|
|
|
372,927 |
|
|||||
Tax (benefit) provision |
|
|
|
|
|
|
|
|
|
(86,539 |
) |
|||||
Net loss |
|
|
|
|
|
|
|
|
|
(178,431 |
) |
|||||
(1) |
Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(2) |
Ships includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(3) |
Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to |
Three Months Ended |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships ⁽²⁾ |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
211,083 |
|
$ |
89,000 |
|
$ |
300,083 |
|
$ |
(49,395 |
) |
|
$ |
250,688 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
48,041 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
1,901 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
34,290 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
44,916 |
|
|||||
Other (income) expense, net |
|
|
|
|
|
|
|
|
|
(19,725 |
) |
|||||
(Income) Loss from equity method investments |
|
|
|
|
|
|
|
|
|
(50,235 |
) |
|||||
Tax (benefit) provision |
|
|
|
|
|
|
|
|
|
(49,681 |
) |
|||||
Net income |
|
|
|
|
|
|
|
|
$ |
241,181 |
|
|||||
(1) |
Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(2) |
Ships includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(3) |
Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to |
Three Months Ended |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships ⁽²⁾ |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
278,354 |
|
$ |
94,796 |
|
$ |
373,150 |
|
$ |
(46,328 |
) |
|
$ |
326,822 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
74,927 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
2,107 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
30,297 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
46,567 |
|
|||||
Other (income) expense, net |
|
|
|
|
|
|
|
|
|
(3,692 |
) |
|||||
Loss from extinguishment of debt |
|
|
|
|
|
|
|
|
|
10,975 |
|
|||||
(Income) Loss from equity method investments |
|
|
|
|
|
|
|
|
|
8,515 |
|
|||||
Tax (benefit) provision |
|
|
|
|
|
|
|
|
|
5,403 |
|
|||||
Net income |
|
|
|
|
|
|
|
|
|
151,723 |
|
|||||
(1) |
Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(2) |
Ships includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(3) |
Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to |
Three Months Ended |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships ⁽²⁾ |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
115,638 |
|
$ |
94,840 |
|
$ |
210,478 |
|
$ |
(76,699 |
) |
|
$ |
133,779 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
46,802 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
1,848 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
31,194 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
57,595 |
|
|||||
Other (income) expense, net |
|
|
|
|
|
|
|
|
|
(5,400 |
) |
|||||
(Income) Loss from equity method investments |
|
|
|
|
|
|
|
|
|
15,983 |
|
|||||
Tax (benefit) provision |
|
|
|
|
|
|
|
|
|
3,526 |
|
|||||
Net loss |
|
|
|
|
|
|
|
|
|
(17,769 |
) |
|||||
(1) |
Terminals and Infrastructure includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(2) |
Ships includes the Company's effective share of revenues, expenses and operating margin attributable to |
|
(3) |
Consolidation and Other adjusts for the inclusion of the effective share of revenues, expenses and operating margin attributable to |
Adjusted Net Income and Adjusted Earnings per Share
(Unaudited, in thousands of
The following table sets forth a reconciliation between net loss attributable to stockholders and earnings per share adjusted for non-cash impairment charges.
|
Three months ended
|
||
Net loss attributable to stockholders |
$ |
(169,765 |
) |
Non-cash impairment charges, net of tax |
|
315,444 |
|
Adjusted net income |
|
145,679 |
|
|
|
||
Weighted-average shares outstanding - diluted (QTD) |
|
209,669,188 |
|
|
|
||
Adjusted earnings per share |
$ |
0.69 |
|
|
|
||
Condensed Consolidated Balance Sheets
As of
(Unaudited, in thousands of |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
138,329 |
|
|
$ |
187,509 |
|
Restricted cash |
|
71,602 |
|
|
|
68,561 |
|
Receivables, net of allowances of |
|
313,457 |
|
|
|
208,499 |
|
Inventory |
|
72,152 |
|
|
|
37,182 |
|
Prepaid expenses and other current assets, net |
|
141,092 |
|
|
|
83,115 |
|
Total current assets |
|
736,632 |
|
|
|
584,866 |
|
|
|
|
|
||||
Restricted cash |
|
7,960 |
|
|
|
7,960 |
|
Construction in progress |
|
1,401,468 |
|
|
|
1,043,883 |
|
Property, plant and equipment, net |
|
2,156,431 |
|
|
|
2,137,936 |
|
Equity method investments |
|
939,738 |
|
|
|
1,182,013 |
|
Right-of-use assets |
|
407,689 |
|
|
|
309,663 |
|
Intangible assets, net |
|
121,088 |
|
|
|
142,944 |
|
Finance leases, net |
|
600,885 |
|
|
|
602,675 |
|
|
|
778,488 |
|
|
|
760,135 |
|
Deferred tax assets, net |
|
5,628 |
|
|
|
5,999 |
|
Other non-current assets, net |
|
95,369 |
|
|
|
98,418 |
|
Total assets |
$ |
7,251,376 |
|
|
$ |
6,876,492 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Current portion of long-term debt |
$ |
99,756 |
|
|
$ |
97,251 |
|
Accounts payable |
|
111,436 |
|
|
|
68,085 |
|
Accrued liabilities |
|
236,535 |
|
|
|
244,025 |
|
Current lease liabilities |
|
53,983 |
|
|
|
47,114 |
|
Other current liabilities |
|
94,286 |
|
|
|
106,036 |
|
Total current liabilities |
|
595,996 |
|
|
|
562,511 |
|
|
|
|
|
||||
Long-term debt |
|
4,051,756 |
|
|
|
3,757,879 |
|
Non-current lease liabilities |
|
329,972 |
|
|
|
234,060 |
|
Deferred tax liabilities, net |
|
140,289 |
|
|
|
269,513 |
|
Other long-term liabilities |
|
60,835 |
|
|
|
58,475 |
|
Total liabilities |
|
5,178,848 |
|
|
|
4,882,438 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Class A common stock, |
|
2,076 |
|
|
|
2,069 |
|
Additional paid-in capital |
|
1,868,618 |
|
|
|
1,923,990 |
|
Accumulated deficit |
|
(63,895 |
) |
|
|
(132,399 |
) |
Accumulated other comprehensive income (loss) |
|
78,232 |
|
|
|
(2,085 |
) |
Total stockholders' equity attributable to NFE |
|
1,885,031 |
|
|
|
1,791,575 |
|
Non-controlling interest |
|
187,497 |
|
|
|
202,479 |
|
Total stockholders' equity |
|
2,072,528 |
|
|
|
1,994,054 |
|
Total liabilities and stockholders' equity |
$ |
7,251,376 |
|
|
$ |
6,876,492 |
|
Condensed Consolidated Statements of Operations
For the three and six months ended
(Unaudited, in thousands of |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Operating revenue |
$ |
497,240 |
|
|
$ |
102,836 |
|
|
$ |
897,315 |
|
|
$ |
194,032 |
|
Vessel charter revenue |
|
75,134 |
|
|
|
64,561 |
|
|
|
167,554 |
|
|
|
64,561 |
|
Other revenue |
|
12,481 |
|
|
|
56,442 |
|
|
|
25,104 |
|
|
|
110,930 |
|
Total revenues |
|
584,855 |
|
|
|
223,839 |
|
|
|
1,089,973 |
|
|
|
369,523 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
272,401 |
|
|
|
101,430 |
|
|
|
480,699 |
|
|
|
198,101 |
|
Vessel operating expenses |
|
18,628 |
|
|
|
15,400 |
|
|
|
41,592 |
|
|
|
15,400 |
|
Operations and maintenance |
|
20,490 |
|
|
|
18,565 |
|
|
|
43,658 |
|
|
|
34,816 |
|
Selling, general and administrative |
|
50,310 |
|
|
|
44,536 |
|
|
|
98,351 |
|
|
|
78,152 |
|
Transaction and integration costs |
|
4,866 |
|
|
|
29,152 |
|
|
|
6,767 |
|
|
|
40,716 |
|
Depreciation and amortization |
|
36,356 |
|
|
|
26,997 |
|
|
|
70,646 |
|
|
|
36,886 |
|
Asset impairment expense |
|
48,109 |
|
|
|
— |
|
|
|
48,109 |
|
|
|
— |
|
Total operating expenses |
|
451,160 |
|
|
|
236,080 |
|
|
|
789,822 |
|
|
|
404,071 |
|
Operating income (loss) |
|
133,695 |
|
|
|
(12,241 |
) |
|
|
300,151 |
|
|
|
(34,548 |
) |
Interest expense |
|
47,840 |
|
|
|
31,482 |
|
|
|
92,756 |
|
|
|
50,162 |
|
Other (income), net |
|
(22,102 |
) |
|
|
(7,457 |
) |
|
|
(41,827 |
) |
|
|
(8,058 |
) |
Net income (loss) before (loss) income from equity method investments and income taxes |
|
107,957 |
|
|
|
(36,266 |
) |
|
|
249,222 |
|
|
|
(76,652 |
) |
(Loss) income from equity method investments |
|
(372,927 |
) |
|
|
38,941 |
|
|
|
(322,692 |
) |
|
|
38,941 |
|
Tax (benefit) provision |
|
(86,539 |
) |
|
|
4,409 |
|
|
|
(136,220 |
) |
|
|
3,532 |
|
Net (loss) income |
|
(178,431 |
) |
|
|
(1,734 |
) |
|
|
62,750 |
|
|
|
(41,243 |
) |
Net income attributable to non-controlling interest |
|
8,666 |
|
|
|
(4,310 |
) |
|
|
5,754 |
|
|
|
(2,704 |
) |
Net (loss) income attributable to stockholders |
$ |
(169,765 |
) |
|
$ |
(6,044 |
) |
|
$ |
68,504 |
|
|
$ |
(43,947 |
) |
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share – basic |
$ |
(0.81 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.33 |
|
|
$ |
(0.23 |
) |
Net (loss) income per share – diluted |
$ |
(0.81 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.33 |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding – basic |
|
209,669,188 |
|
|
|
202,331,304 |
|
|
|
209,797,133 |
|
|
|
189,885,473 |
|
Weighted average number of shares outstanding – diluted |
|
209,669,188 |
|
|
|
202,331,304 |
|
|
|
209,810,647 |
|
|
|
189,885,473 |
|
Condensed Consolidated Statements of Cash Flows
For the six months ended
(Unaudited, in thousands of |
|||||||
|
Six Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Cash flows from operating activities |
|
|
|
||||
Net income (loss) |
$ |
62,750 |
|
|
$ |
(41,243 |
) |
Adjustments for: |
|
|
|
||||
Amortization of deferred financing costs and debt guarantee, net |
|
2,383 |
|
|
|
(6,290 |
) |
Depreciation and amortization |
|
71,172 |
|
|
|
37,462 |
|
Loss (earnings) of equity method investees |
|
322,692 |
|
|
|
(38,941 |
) |
Drydocking expenditure |
|
(12,439 |
) |
|
|
— |
|
Dividends received from equity method investees |
|
14,859 |
|
|
|
7,386 |
|
Sales-type lease payments received in excess of interest income |
|
1,426 |
|
|
|
2,388 |
|
Change in market value of derivatives |
|
(9,798 |
) |
|
|
(7,073 |
) |
Deferred taxes |
|
(178,109 |
) |
|
|
2,447 |
|
Change in value of investment of equity securities |
|
1,090 |
|
|
|
(88 |
) |
Share-based compensation |
|
1,238 |
|
|
|
3,383 |
|
Asset impairment expense |
|
48,109 |
|
|
|
— |
|
Other |
|
671 |
|
|
|
275 |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
(Increase) in receivables |
|
(123,843 |
) |
|
|
(38,018 |
) |
(Increase) in inventories |
|
(35,167 |
) |
|
|
(35,458 |
) |
(Increase) Decrease in other assets |
|
(58,949 |
) |
|
|
3,679 |
|
Decrease in right-of-use assets |
|
35,265 |
|
|
|
2,072 |
|
Increase in accounts payable/accrued liabilities |
|
71,603 |
|
|
|
24,732 |
|
Increase (Decrease) in amounts due to affiliates |
|
1,238 |
|
|
|
(2,919 |
) |
(Decrease) Increase in lease liabilities |
|
(31,352 |
) |
|
|
133 |
|
Decrease in other liabilities |
|
(13,906 |
) |
|
|
(25,279 |
) |
Net cash provided by (used in) operating activities |
|
170,933 |
|
|
|
(111,352 |
) |
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Capital expenditures |
|
(441,708 |
) |
|
|
(235,324 |
) |
Cash paid for business combinations, net of cash acquired |
|
— |
|
|
|
(1,586,042 |
) |
Entities acquired in asset acquisitions, net of cash acquired |
|
— |
|
|
|
(8,817 |
) |
Other investing activities |
|
— |
|
|
|
(750 |
) |
Net cash (used in) investing activities |
|
(441,708 |
) |
|
|
(1,830,933 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from borrowings of debt |
|
437,917 |
|
|
|
1,652,500 |
|
Payment of deferred financing costs |
|
(4,805 |
) |
|
|
(20,989 |
) |
Repayment of debt |
|
(146,030 |
) |
|
|
(15,864 |
) |
Payments related to tax withholdings for share-based compensation |
|
(13,054 |
) |
|
|
(29,717 |
) |
Payment of dividends |
|
(47,374 |
) |
|
|
(41,346 |
) |
Net cash provided by financing activities |
|
226,654 |
|
|
|
1,544,584 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(2,018 |
) |
|
|
(1,317 |
) |
Net (decrease) in cash, cash equivalents and restricted cash |
|
(46,139 |
) |
|
|
(399,018 |
) |
Cash, cash equivalents and restricted cash – beginning of period |
|
264,030 |
|
|
|
629,336 |
|
Cash, cash equivalents and restricted cash – end of period |
$ |
217,891 |
|
|
$ |
230,318 |
|
|
|
|
|
||||
Supplemental disclosure of non-cash investing and financing activities: |
|
|
|
||||
Changes in accounts payable and accrued liabilities associated with construction in progress and property, plant and equipment additions |
$ |
5,302 |
|
|
$ |
85,513 |
|
Liabilities associated with consideration paid for entities acquired in asset acquisitions |
|
— |
|
|
|
9,959 |
|
Consideration paid in shares for business combinations |
|
— |
|
|
|
1,400,784 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005965/en/
IR:
bmagill@newfortressenergy.com
Media:
jsuski@newfortressenergy.com
(516) 268-7403
Source:
FAQ
What are the financial highlights of NFE for Q2 2022?
What is NFE's Adjusted EBITDA goal for 2022?
How many FLNG deployment locations does NFE have?
What was NFE's Adjusted EPS in Q2 2022?
When is NFE's earnings conference call scheduled?
