New Fortress Energy Announces Second Quarter 2024 Results
New Fortress Energy (NFE) reported its Q2 2024 financial results, with Adjusted EBITDA of $120 million, below expectations of $275 million. The shortfall was primarily due to delays in the FLNG 1 project, which is now operational as of July 19. Q2 results do not include $107 million of contracted LNG sales, which will be reflected in H2 2024. NFE reported a net loss of $87 million and Adjusted EPS of $(0.41).
The company forecasts Adjusted EBITDA of $1.4-1.5 billion for 2024 and $1.3 billion for 2025. NFE completed its initial Fast LNG asset offshore Altamira, Mexico, with a capacity of 1.4 MTPA. The Board approved a dividend of $0.10 per share. NFE plans to refinance its 6.75% senior secured notes due September 2025 in the near term.
New Fortress Energy (NFE) ha riportato i risultati finanziari del secondo trimestre del 2024, con un EBITDA Adjusted di 120 milioni di dollari, al di sotto delle aspettative di 275 milioni di dollari. La mancata corrispondenza è stata principalmente causata da ritardi nel progetto FLNG 1, che è ora operativo dal 19 luglio. I risultati del secondo trimestre non includono 107 milioni di dollari di vendite contrattate di LNG, che saranno riflessi nel secondo semestre del 2024. NFE ha registrato una perdita netta di 87 milioni di dollari e un EPS Adjusted di $(0.41).
La società prevede un EBITDA Adjusted di 1,4-1,5 miliardi di dollari per il 2024 e di 1,3 miliardi di dollari per il 2025. NFE ha completato il suo iniziale asset Fast LNG al largo di Altamira, Messico, con una capacità di 1,4 MTPA. Il Consiglio ha approvato un dividendo di 0,10 dollari per azione. NFE prevede di rifinanziare i suoi note senior secured al 6,75% in scadenza a settembre 2025 nel prossimo futuro.
New Fortress Energy (NFE) informó sobre sus resultados financieros del segundo trimestre de 2024, con un EBITDA ajustado de 120 millones de dólares, por debajo de las expectativas de 275 millones de dólares. La discrepancia se debió principalmente a retrasos en el proyecto FLNG 1, que ahora está operativo desde el 19 de julio. Los resultados del segundo trimestre no incluyen 107 millones de dólares en ventas de LNG contratadas, que se reflejarán en el segundo semestre de 2024. NFE reportó una pérdida neta de 87 millones de dólares y un EPS ajustado de $(0.41).
La compañía pronostica un EBITDA ajustado de 1.4-1.5 mil millones de dólares para 2024 y de 1.3 mil millones de dólares para 2025. NFE completó su activo inicial de Fast LNG frente a Altamira, México, con una capacidad de 1.4 MTPA. La Junta aprobó un dividendo de 0.10 dólares por acción. NFE planea refinanciar sus notas senior aseguradas al 6.75% que vencen en septiembre de 2025 en el corto plazo.
New Fortress Energy (NFE)는 2024년 2분기 재무 결과를 발표했으며, 조정 EBITDA는 1억 2천만 달러로, 2억 7천5백만 달러의 예상치를 하회했습니다. 이 부족분은 주로 7월 19일부터 가동된 FLNG 1 프로젝트의 지연으로 인한 것입니다. 2분기 결과에는 1억 7천만 달러의 계약된 LNG 판매액이 포함되어 있지 않습니다, 이는 2024년 하반기에 반영될 것입니다. NFE는 8천7백만 달러의 순손실을 기록했으며, 조정 주당순이익(EPS)은 $(0.41)입니다.
회사는 2024년에 대한 조정 EBITDA 목표를 14억~15억 달러로 설정했으며, 2025년에는 13억 달러를 예상하고 있습니다. NFE는 멕시코 알타미라 해안에서 Fast LNG 초기 자산을 14만 톤 연간(MTPA) 용량으로 완료했습니다. 이사회는 주당 0.10달러의 배당금을 승인했습니다. NFE는 2025년 9월 만기인 6.75%의 담보부 선순위 노트를 조만간 재조정할 계획입니다.
New Fortress Energy (NFE) a publié ses résultats financiers pour le deuxième trimestre 2024, avec un EBITDA ajusté de 120 millions de dollars, en dessous des attentes de 275 millions de dollars. L'écart était principalement dû à des retards dans le projet FLNG 1, qui est maintenant opérationnel depuis le 19 juillet. Les résultats du deuxième trimestre n'incluent pas 107 millions de dollars de ventes de GNL contractuelles, qui seront reflétées dans le second semestre 2024. NFE a signalé une perte nette de 87 millions de dollars et un EPS ajusté de $(0.41).
La société prévoit un EBITDA ajusté de 1,4 à 1,5 milliard de dollars pour 2024 et de 1,3 milliard de dollars pour 2025. NFE a terminé son actif initial Fast LNG au large d'Altamira, au Mexique, avec une capacité de 1,4 MTPA. Le Conseil a approuvé un dividende de 0,10 dollar par action. NFE prévoit de refinancer ses obligations senior garanties de 6,75% arrivant à échéance en septembre 2025 dans un proche avenir.
New Fortress Energy (NFE) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem bereinigten EBITDA von 120 Millionen Dollar, was unter den Erwartungen von 275 Millionen Dollar liegt. Die Abweichung war hauptsächlich auf Verzögerungen beim FLNG 1-Projekt zurückzuführen, das seit dem 19. Juli in Betrieb ist. Die Ergebnisse des zweiten Quartals beinhalten nicht 107 Millionen Dollar an vertraglichen LNG-Verkäufen, die im zweiten Halbjahr 2024 berücksichtigt werden.
NFE berichtete über einen Nettoverlust von 87 Millionen Dollar und ein angepasstes EPS von $(0.41).
Das Unternehmen prognostiziert ein bereinigtes EBITDA von 1,4 bis 1,5 Milliarden Dollar für 2024 und 1,3 Milliarden Dollar für 2025. NFE hat sein erstes Fast LNG-Asset vor der Küste von Altamira, Mexiko, mit einer Kapazität von 1,4 MTPA abgeschlossen. Der Vorstand genehmigte eine Dividende von 0,10 Dollar pro Aktie. NFE plant, in naher Zukunft seine gesicherten Senioren-Anleihen mit 6,75%, die im September 2025 fällig werden, zu refinanzieren.
- FLNG 1 project now operational, expected to boost future performance
- Forecasted Adjusted EBITDA of $1.4-1.5 billion for 2024 and $1.3 billion for 2025
- Completion of Fast LNG asset with 1.4 MTPA capacity
- $107 million of contracted LNG sales to be reflected in H2 2024 results
- Q2 2024 Adjusted EBITDA of $120 million, significantly below $275 million expectation
- Net loss of $87 million in Q2 2024
- Negative Adjusted EPS of $(0.41) in Q2 2024
- Delays in FLNG 1 project resulted in approximately $150 million per quarter in lost operating margin
Insights
New Fortress Energy's Q2 2024 results reveal significant challenges, with Adjusted EBITDA of
However, there are some positive aspects to consider:
- FLNG 1 is now operational as of July 19, 2024
$107 million of contracted LNG sales from Q2 will be reflected in H2 2024 results- Full-year 2024 Adjusted EBITDA forecast remains strong at
$1.4-1.5 billion
The net loss of
The completion of FLNG 1 is a significant milestone for New Fortress Energy, positioning them as a vertically integrated LNG player. This project, touted as the fastest large-scale LNG facility ever built, demonstrates NFE's innovative approach in the rapidly evolving LNG market.
Key points to consider:
- 1.4 MTPA capacity adds substantial production capability
- Vertical integration could lead to improved margins and supply chain control
- Faster project completion may give NFE a competitive edge in future developments
However, the initial delays highlight the risks associated with pioneering technologies in the LNG sector. Investors should weigh the potential for future efficiencies against the possibility of similar setbacks in upcoming projects. The company's ability to leverage this new asset effectively will be important for meeting its ambitious Adjusted EBITDA goals for 2024 and 2025.
New Fortress Energy's Q2 results present a mixed picture for investors. While the FLNG 1 delay impacted short-term performance, the project's completion could be a game-changer for NFE's market position. Key strategic considerations include:
- Diversification across terminals, infrastructure and shipping segments
- Expansion into new markets like Nicaragua and Brazil
- Potential for increased market share in the growing LNG industry
The company's dividend maintenance at
Investors should closely monitor NFE's ability to capitalize on FLNG 1's capabilities and meet its ambitious Adjusted EBITDA goals, which will be critical for long-term value creation.
Summary Highlights
-
Adjusted EBITDA(1) of
in the second quarter of 2024$120 million -
Second quarter results do not include
of contracted LNG sales during the quarter, which will be included in Adjusted EBITDA and earnings in the second half of 2024$107 million -
Net loss of
in the second quarter of 2024$87 million -
Adjusted EPS(2) of
on a fully diluted basis in the second quarter of 2024$(0.41) -
EPS of
on a fully diluted basis in the second quarter of 2024$(0.44) -
Funds from Operations per share(3) of
on a fully diluted basis in the second quarter of 2024$(0.23) -
Illustrative Adjusted EBITDA Goal(4) of
in the full year 2024 and$1.4 -1.5 billion in the full year 2025$1.3 billion - FLNG 1 project complete with First Cargo(5) expected in August 2024
“Our Adjusted EBITDA in the second quarter of
“We are very pleased to report that FLNG 1 is now in service as of July 19 and performing as expected. While we are disappointed in the delay, we believe this project is by far the fastest LNG facility ever built and positions the Company well to take advantage of the current market for LNG.
“Our Adjusted EBITDA in the second quarter does not include
“We have a large and expanding business, with a broad and robust portfolio and customers. While we are disappointed in the delay in placing FLNG 1 into service, it is now operational and we are very excited about the future of our business,” said Wes Edens, Chairman and CEO of New Fortress Energy.
Financial Highlights
We generated Adjusted EBITDA(1) of
We completed our initial Fast LNG asset located offshore
On August 8, 2024, NFE’s Board of Directors approved a dividend of
Financial Detail
|
Three Months Ended |
||||||||
(in millions) |
June 30, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
||||
Revenues |
$ |
561.3 |
|
$ |
690.3 |
|
$ |
428.0 |
|
Net income (loss) |
$ |
120.1 |
|
$ |
56.7 |
|
$ |
(86.9 |
) |
Diluted EPS |
$ |
0.58 |
|
$ |
0.26 |
|
$ |
(0.44 |
) |
Adjusted net income (loss)(7) |
$ |
119.2 |
|
$ |
138.4 |
|
$ |
(84.6 |
) |
Adjusted EPS(2) |
$ |
0.58 |
|
$ |
0.67 |
|
$ |
(0.41 |
) |
Terminals and Infrastructure Segment Operating Margin(8) |
$ |
239.4 |
|
$ |
350.1 |
|
$ |
214.3 |
|
Ships Segment Operating Margin(8) |
$ |
54.4 |
|
$ |
34.2 |
|
$ |
34.1 |
|
Total Segment Operating Margin(8) |
$ |
293.8 |
|
$ |
384.3 |
|
$ |
248.4 |
|
Adjusted EBITDA(1) |
$ |
246.5 |
|
$ |
340.1 |
|
$ |
120.2 |
|
The Company intends to refinance all its
Please refer to our Q2 2024 Investor Presentation (the “Presentation”) for further information about the following terms:
1)“Adjusted EBITDA,” see definition and reconciliation of this non-GAAP measure in the exhibits to this press release.
2) “Adjusted EPS” is not a measurement of financial performance under GAAP and should not be considered in isolation or as an alternative to any measure of performance or liquidity derived in accordance with GAAP. We calculate Adjusted EPS as Adjusted Net Income (Note 7 below) divided by the weighted average shares outstanding on a fully diluted basis for the period indicated. We believe this non-GAAP measure, as we have defined it, offers a useful supplemental view of the overall evaluation of the Company in a manner that is consistent with metrics used for management’s evaluation of the Company’s overall performance. Adjusted EPS does not have a standardized meaning, and different companies may use different definitions. Therefore, this term may not be necessarily comparable to similarly titled measures reported by other companies.
3) “Funds From Operations per share” means net income attributable to stockholders, computed in accordance with GAAP, excluding gains or losses from sales of assets, depreciation and amortization and impairment charges divided by the weighted average shares outstanding on a fully diluted basis. We compute FFO in accordance with our interpretation of standards established by the National Association of Real Estate Investment Trusts (“NAREIT”), which may not be comparable to FFO reported by REITs that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently than we do. We believe that FFO is helpful to investors as supplemental measures of the performance of our infrastructure investments. We believe that FFO can facilitate comparisons of operating performance between periods by excluding the effect of depreciation and amortization related to our infrastructure investments and impairment charges, which are based on historical costs and may be of limited relevance in evaluating current performance. Our definitions and calculations of these Non-GAAP financial and operating measures and other terms may differ from the definitions and methodologies used by other registrants and accordingly, may not be comparable. These Non-GAAP financial and operating measures do not represent cash generated from operating activities in accordance with GAAP, nor do they represent cash available to pay distributions and they should not be considered as an alternative to net income attributable to stockholders, determined in accordance with GAAP, as an indication of our financial performance, or to cash flows from operating activities, determined in accordance with GAAP, as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make cash distributions.
4) “Illustrative Adjusted EBITDA Goal” for the second half of 2024 and full year 2024 and 2025 means our forward-looking goal for Adjusted EBITDA for the relevant period and is based on the "Illustrative Total Segment Operating Margin Goal" less illustrative Core SG&A assumed to be at approximately
For the purpose of this presentation, we have assumed an average Total Segment Operating Margin between
5) “First Cargo” refers to management's current estimate of the date on which LNG cargo sales are expected for a project. Full commercial operation of such project will occur later than, and may occur substantially later than, the date of First Cargo. We cannot assure you if or when such projects will reach the date of delivery of First Cargo, or full commercial operations.
6) Reserved.
7) “Adjusted Net Income” means Net Income attributable to stockholders as presented in the relevant Form 10-K or Form 10-Q for the relevant financial period as adjusted by non-cash impairment charges and gains or losses on disposal of our assets.
8) “Total Segment Operating Margin” is the total of our Terminals and Infrastructure Segment Operating Margin and Ships Segment Operating Margin. Our segment measure also excludes unrealized mark-to-market gains or losses on derivative instruments and certain contract acquisition costs.
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, 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 Friday, August 9, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing (888) 224-1005 (toll-free from within the
A simultaneous webcast of the conference call will be available to the public on a listen-only basis at www.newfortressenergy.com under the Investors section within “Events & Presentations.” Please allow time prior to the call to visit the site 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 New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The Company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the Company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain statements and information that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than historical information are forward-looking statements that involve known and unknown risks and relate to future events, our future financial performance or our projected business results. You can identify these forward-looking statements by the use of forward-looking words such as “expects,” “may,” “will,” “can,” “could,” “should,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “believes,” “schedules,” “progress,” “targets,” “budgets,” “outlook,” “trends,” “forecasts,” “projects,” “guidance,” “focus,” “on track,” “goals,” “objectives,” “strategies,” “opportunities,” “poised,” or the negative version of those words or other comparable words. Forward looking statements include: our expectation regarding our Illustrative Adjusted EBITDA Goals for 2024 and 2025; the successful development, construction, completion, operation and/or deployment of facilities and the timing of first LNG cargo, including our
Exhibits – Financial Statements
Condensed Consolidated Statements of Operations For the three months ended March 31, 2024 and June 30, 2024
(Unaudited, in thousands of |
|||||||
|
For the Three Months Ended |
||||||
|
March 31, 2024 |
|
June 30, 2024 |
||||
Revenues |
|
|
|
||||
Operating revenue |
$ |
609,504 |
|
|
$ |
291,222 |
|
Vessel charter revenue |
|
46,655 |
|
|
|
52,416 |
|
Other revenue |
|
34,162 |
|
|
|
84,368 |
|
Total revenues |
|
690,321 |
|
|
|
428,006 |
|
|
|
|
|
||||
Operating expenses |
|
|
|
||||
Cost of sales (exclusive of depreciation and amortization shown separately below) |
|
229,117 |
|
|
|
221,860 |
|
Vessel operating expenses |
|
8,396 |
|
|
|
8,503 |
|
Operations and maintenance |
|
68,548 |
|
|
|
39,292 |
|
Selling, general and administrative |
|
70,754 |
|
|
|
70,578 |
|
Transaction and integration costs |
|
1,371 |
|
|
|
1,760 |
|
Depreciation and amortization |
|
50,491 |
|
|
|
37,413 |
|
Asset impairment expense |
|
— |
|
|
|
4,272 |
|
Loss on sale of assets, net |
|
77,140 |
|
|
|
— |
|
Total operating expenses |
|
505,817 |
|
|
|
383,678 |
|
Operating income |
|
184,504 |
|
|
|
44,328 |
|
Interest expense |
|
77,344 |
|
|
|
80,399 |
|
Other expense, net |
|
19,112 |
|
|
|
47,354 |
|
Loss on extinguishment of debt, net |
|
9,754 |
|
|
|
— |
|
Income (loss) before income from equity method investments and income taxes |
|
78,294 |
|
|
|
(83,425 |
) |
Tax provision |
|
21,624 |
|
|
|
3,435 |
|
Net income (loss) |
|
56,670 |
|
|
|
(86,860 |
) |
Net (income) attributable to non-controlling interest |
|
(2,589 |
) |
|
|
(1,994 |
) |
Net income (loss) attributable to stockholders |
$ |
54,081 |
|
|
$ |
(88,854 |
) |
|
|
|
|
||||
Net income (loss) per share - basic |
$ |
0.26 |
|
|
$ |
(0.44 |
) |
Net income (loss) per share - diluted |
$ |
0.26 |
|
|
$ |
(0.44 |
) |
|
|
|
|
||||
Weighted average number of shares outstanding – basic |
|
205,061,967 |
|
|
|
205,070,756 |
|
Weighted average number of shares outstanding – diluted |
|
205,977,720 |
|
|
|
205,851,364 |
|
Adjusted EBITDA
For the three months ended June 30, 2024
(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 from operations, net income, 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 our 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, loss on asset sales, interest expense, net, other (income) expense, 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, certain non-capitalizable contract acquisition costs plus our pro rata share of Adjusted EBITDA from certain unconsolidated entities, less the impact of equity in earnings (losses) of certain 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 certain unconsolidated entities, minus deferred earnings for which a prepayment was received. 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, 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 and diluted earnings per share attributable to New Fortress Energy, which are determined in accordance with GAAP.
The following table sets forth a reconciliation of net income (loss) to Adjusted EBITDA for the three months ended June 30, 2023, March 31, 2024 and June 30, 2024:
(in thousands) |
|
Three Months
|
|
Three Months
|
|
Three Months
|
|||||
Total Segment Operating Margin |
|
$ |
293,834 |
|
|
$ |
384,260 |
|
$ |
248,351 |
|
Less: Core SG&A (see definition above) |
|
|
47,381 |
|
|
|
44,112 |
|
|
38,190 |
|
Less: Pro rata share Core SG&A from unconsolidated entities |
|
|
— |
|
|
|
— |
|
|
— |
|
Less: Deferred earnings from contracted sales |
|
|
— |
|
|
|
— |
|
|
90,000 |
|
Adjusted EBITDA (Non-GAAP) |
|
$ |
246,453 |
|
|
$ |
340,148 |
|
$ |
120,161 |
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
Net income (loss) |
|
$ |
120,100 |
|
|
$ |
56,670 |
|
$ |
(86,860 |
) |
Add: Interest expense |
|
|
64,396 |
|
|
|
77,344 |
|
|
80,399 |
|
Add: Tax provision |
|
|
15,322 |
|
|
|
21,624 |
|
|
3,435 |
|
Add: Depreciation and amortization |
|
|
42,115 |
|
|
|
50,491 |
|
|
37,413 |
|
Add: Asset impairment expense |
|
|
— |
|
|
|
— |
|
|
4,272 |
|
Add: SG&A items excluded from Core SG&A (see definition above) |
|
|
8,422 |
|
|
|
26,642 |
|
|
32,388 |
|
Add: Transaction and integration costs |
|
|
1,554 |
|
|
|
1,371 |
|
|
1,760 |
|
Add: Other (income) expense, net |
|
|
(6,584 |
) |
|
|
19,112 |
|
|
47,354 |
|
Add: Changes in fair value of non-hedge derivative instruments and contingent consideration |
|
|
(2,835 |
) |
|
|
— |
|
|
— |
|
Add: Loss on extinguishment of debt, net |
|
|
— |
|
|
|
9,754 |
|
|
— |
|
Add: Loss on sale of assets, net |
|
|
— |
|
|
|
77,140 |
|
|
— |
|
Add: (Income) from equity method investments |
|
|
(2,269 |
) |
|
|
— |
|
|
— |
|
Add: Contract acquisition cost |
|
|
6,232 |
|
|
|
— |
|
|
— |
|
Adjusted EBITDA |
|
$ |
246,453 |
|
|
$ |
340,148 |
|
$ |
120,161 |
|
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, 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, loss on asset sales, interest expense, other (income) expense, loss on extinguishment of debt, net, (income) loss from equity method investments and tax (benefit) provision. 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 June 30, 2024 |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
214,276 |
|
$ |
34,075 |
|
$ |
248,351 |
|
$ |
(90,000 |
) |
|
$ |
158,351 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
70,578 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
1,760 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
37,413 |
|
|||||
Asset impairment expense |
|
|
|
|
|
|
|
|
|
4,272 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
80,399 |
|
|||||
Other expense, net |
|
|
|
|
|
|
|
|
|
47,354 |
|
|||||
Tax provision |
|
|
|
|
|
|
|
|
|
3,435 |
|
|||||
Net loss |
|
|
|
|
|
|
|
|
$ |
(86,860 |
) |
Three Months Ended March 31, 2024 |
|||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships |
|
Total
|
|
Consolidation
|
|
Consolidated |
||||||
Segment Operating Margin |
$ |
350,072 |
|
$ |
34,188 |
|
$ |
384,260 |
|
$ |
— |
|
$ |
384,260 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
70,754 |
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
1,371 |
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
50,491 |
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
77,344 |
|||||
Other expense, net |
|
|
|
|
|
|
|
|
|
19,112 |
|||||
Loss on sale of assets, net |
|
|
|
|
|
|
|
|
|
77,140 |
|||||
Loss on extinguishment of debt, net |
|
|
|
|
|
|
|
|
|
9,754 |
|||||
Tax provision |
|
|
|
|
|
|
|
|
|
21,624 |
|||||
Net income |
|
|
|
|
|
|
|
|
|
56,670 |
|
(1) |
Terminals and Infrastructure includes deferred earnings from contracted sales that were contracted in the current period, and prepayment for these sales was received. Revenue will be recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when delivery under these forward sales transactions is completed in the third and fourth quarters of 2024. Consolidation and Other adjusts for the inclusion of deferred earnings from forward contracted sales in Total Segment Operating Margin of |
Three Months Ended June 30, 2023 |
||||||||||||||||
(in thousands of $) |
Terminals and
|
|
Ships |
|
Total
|
|
Consolidation
|
|
Consolidated |
|||||||
Segment Operating Margin |
$ |
239,436 |
|
$ |
54,398 |
|
$ |
293,834 |
|
$ |
(3,397 |
) |
|
$ |
290,437 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
55,803 |
|
|||||
Transaction and integration costs |
|
|
|
|
|
|
|
|
|
1,554 |
|
|||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
42,115 |
|
|||||
Interest expense |
|
|
|
|
|
|
|
|
|
64,396 |
|
|||||
Other (income), net |
|
|
|
|
|
|
|
|
|
(6,584 |
) |
|||||
(Income) from equity method investments |
|
|
|
|
|
|
|
|
|
(2,269 |
) |
|||||
Tax provision |
|
|
|
|
|
|
|
|
|
15,322 |
|
|||||
Net income |
|
|
|
|
|
|
|
|
$ |
120,100 |
(1) |
The Company has excluded contract acquisition costs that do not meet the criteria for capitalization from the segment measure. Contract acquisition costs of |
Adjusted Net Income and Adjusted Earnings per Share
(Unaudited, in thousands of
The following table sets forth a reconciliation between net income attributable to stockholders and earnings per share adjusted for non-cash impairment charges and losses on disposals of assets.
|
|
Three months
|
|
Three months
|
|
Three months
|
||||
Net income (loss) attributable to stockholders |
|
$ |
119,248 |
|
$ |
54,081 |
|
$ |
(88,854 |
) |
Non-cash impairment charges, net of tax |
|
|
— |
|
|
— |
|
|
4,272 |
|
Loss on sale of assets |
|
|
— |
|
|
77,140 |
|
|
— |
|
Loss on disposal of equity method investment |
|
|
— |
|
|
7,222 |
|
|
— |
|
Adjusted net income (loss) |
|
$ |
119,248 |
|
$ |
138,443 |
|
$ |
(84,582 |
) |
|
|
|
|
|
|
|
||||
Weighted-average shares outstanding - diluted |
|
|
205,711,467 |
|
|
205,977,720 |
|
|
205,851,364 |
|
|
|
|
|
|
|
|
||||
Adjusted earnings per share |
|
$ |
0.58 |
|
$ |
0.67 |
|
$ |
(0.41 |
) |
|
|
|
|
|
|
|
Funds from Operations
For the three and six months ended June 30, 2024
(Unaudited, in thousands of
The following table sets forth a reconciliation between net income attributable to stockholders and Funds from operations ("FFO") and FFO per share. We have defined FFO as net income attributable to stockholders, adjusted by depreciation and amortization, gains or losses from the sale of assets and impairment charges, each as reported in our financial statements.
|
Three months ended
|
||
Net income (loss) attributable to stockholders |
$ |
(88,854 |
) |
Depreciation/amortization |
|
37,413 |
|
Non-cash impairment charges, net of tax |
|
4,272 |
|
Loss on sale of assets |
|
— |
|
Loss on disposal of equity method investment |
|
— |
|
Funds from operations |
$ |
(47,169 |
) |
Weighted-average shares outstanding - diluted |
|
205,851,364 |
|
Funds from operations / share |
$ |
(0.23 |
) |
Condensed Consolidated Balance Sheets
As of June 30, 2024 and December 31, 2023
(Unaudited, in thousands of
|
June 30, 2024 |
|
December 31, 2023 |
||
Assets |
|
|
|
||
Current assets |
|
|
|
||
Cash and cash equivalents |
$ |
132,960 |
|
$ |
155,414 |
Restricted cash |
|
164,888 |
|
|
155,400 |
Receivables, net of allowances of |
|
406,779 |
|
|
342,371 |
Inventory |
|
141,723 |
|
|
113,684 |
Prepaid expenses and other current assets, net |
|
277,983 |
|
|
213,104 |
Total current assets |
|
1,124,333 |
|
|
979,973 |
|
|
|
|
||
Construction in progress |
|
6,301,162 |
|
|
5,348,294 |
Property, plant and equipment, net |
|
2,144,838 |
|
|
2,481,415 |
Equity method investments |
|
— |
|
|
137,793 |
Right-of-use assets |
|
673,424 |
|
|
588,385 |
Intangible assets, net |
|
207,731 |
|
|
51,815 |
Goodwill |
|
776,760 |
|
|
776,760 |
Deferred tax assets, net |
|
43,023 |
|
|
9,907 |
Other non-current assets, net |
|
137,106 |
|
|
126,903 |
Total assets |
$ |
11,408,377 |
|
$ |
10,501,245 |
|
|
|
|
||
Liabilities |
|
|
|
||
Current liabilities |
|
|
|
||
Current portion of long-term debt and short-term borrowings |
$ |
236,147 |
|
$ |
292,625 |
Accounts payable |
|
572,746 |
|
|
549,489 |
Accrued liabilities |
|
384,476 |
|
|
471,675 |
Current lease liabilities |
|
120,873 |
|
|
164,548 |
Other current liabilities |
|
250,558 |
|
|
227,951 |
Total current liabilities |
|
1,564,800 |
|
|
1,706,288 |
|
|
|
|
||
Long-term debt |
|
7,392,811 |
|
|
6,510,523 |
Non-current lease liabilities |
|
521,225 |
|
|
406,494 |
Deferred tax liabilities, net |
|
97,936 |
|
|
44,444 |
Other long-term liabilities |
|
46,492 |
|
|
55,627 |
Total liabilities |
|
9,623,264 |
|
|
8,723,376 |
|
|
|
|
||
Commitments and contingencies |
|
|
|
||
|
|
|
|
||
Series A convertible preferred stock, |
|
97,845 |
|
|
— |
|
|
|
|
||
Stockholders’ equity |
|
|
|
||
Class A common stock, |
|
2,050 |
|
|
2,050 |
Additional paid-in capital |
|
1,063,426 |
|
|
1,038,530 |
Retained earnings |
|
450,871 |
|
|
527,986 |
Accumulated other comprehensive income |
|
43,653 |
|
|
71,528 |
Total stockholders' equity attributable to NFE |
|
1,560,000 |
|
|
1,640,094 |
Non-controlling interest |
|
127,268 |
|
|
137,775 |
Total stockholders' equity |
|
1,687,268 |
|
|
1,777,869 |
Total liabilities, convertible preferred stock and stockholders’ equity |
$ |
11,408,377 |
|
$ |
10,501,245 |
Condensed Consolidated Statements of Operations
For the three and six months ended June 30, 2024 and 2023
(Unaudited, in thousands of
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Operating revenue |
$ |
291,222 |
|
|
$ |
494,619 |
|
|
$ |
900,726 |
|
|
$ |
996,307 |
|
Vessel charter revenue |
|
52,416 |
|
|
|
65,840 |
|
|
|
99,071 |
|
|
|
142,364 |
|
Other revenue |
|
84,368 |
|
|
|
886 |
|
|
|
118,530 |
|
|
|
1,805 |
|
Total revenues |
|
428,006 |
|
|
|
561,345 |
|
|
|
1,118,327 |
|
|
|
1,140,476 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below) |
|
221,860 |
|
|
|
225,768 |
|
|
|
450,977 |
|
|
|
410,706 |
|
Vessel operating expenses |
|
8,503 |
|
|
|
11,443 |
|
|
|
16,899 |
|
|
|
24,734 |
|
Operations and maintenance |
|
39,292 |
|
|
|
33,697 |
|
|
|
107,840 |
|
|
|
60,368 |
|
Selling, general and administrative |
|
70,578 |
|
|
|
55,803 |
|
|
|
141,332 |
|
|
|
107,941 |
|
Transaction and integration costs |
|
1,760 |
|
|
|
1,554 |
|
|
|
3,131 |
|
|
|
2,048 |
|
Depreciation and amortization |
|
37,413 |
|
|
|
42,115 |
|
|
|
87,904 |
|
|
|
76,490 |
|
Asset impairment expense |
|
4,272 |
|
|
|
— |
|
|
|
4,272 |
|
|
|
— |
|
Loss on sale of assets, net |
|
— |
|
|
|
— |
|
|
|
77,140 |
|
|
|
— |
|
Total operating expenses |
|
383,678 |
|
|
|
370,380 |
|
|
|
889,495 |
|
|
|
682,287 |
|
Operating income |
|
44,328 |
|
|
|
190,965 |
|
|
|
228,832 |
|
|
|
458,189 |
|
Interest expense |
|
80,399 |
|
|
|
64,396 |
|
|
|
157,743 |
|
|
|
136,069 |
|
Other expense (income), net |
|
47,354 |
|
|
|
(6,584 |
) |
|
|
66,466 |
|
|
|
18,421 |
|
Loss on extinguishment of debt, net |
|
— |
|
|
|
— |
|
|
|
9,754 |
|
|
|
— |
|
Income (loss) before income from equity method investments and income taxes |
|
(83,425 |
) |
|
|
133,153 |
|
|
|
(5,131 |
) |
|
|
303,699 |
|
Income from equity method investments |
|
— |
|
|
|
2,269 |
|
|
|
— |
|
|
|
12,249 |
|
Tax provision |
|
3,435 |
|
|
|
15,322 |
|
|
|
25,059 |
|
|
|
44,282 |
|
Net income (loss) |
|
(86,860 |
) |
|
|
120,100 |
|
|
|
(30,190 |
) |
|
|
271,666 |
|
Net (income) attributable to non-controlling interest |
|
(1,994 |
) |
|
|
(852 |
) |
|
|
(4,583 |
) |
|
|
(2,212 |
) |
Net income (loss) attributable to stockholders |
$ |
(88,854 |
) |
|
$ |
119,248 |
|
|
$ |
(34,773 |
) |
|
$ |
269,454 |
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share – basic |
$ |
(0.44 |
) |
|
$ |
0.58 |
|
|
$ |
(0.18 |
) |
|
$ |
1.30 |
|
Net income (loss) per share – diluted |
$ |
(0.44 |
) |
|
$ |
0.58 |
|
|
$ |
(0.18 |
) |
|
$ |
1.29 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of shares outstanding – basic |
|
205,070,756 |
|
|
|
205,045,121 |
|
|
|
205,066,362 |
|
|
|
206,867,828 |
|
Weighted average number of shares outstanding – diluted |
|
205,851,364 |
|
|
|
205,711,467 |
|
|
|
205,846,970 |
|
|
|
207,534,174 |
|
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 2024 and 2023
(Unaudited, in thousands of
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
||||
Net income (loss) |
$ |
(30,190 |
) |
|
$ |
271,666 |
|
Adjustments for: |
|
|
|
||||
Depreciation and amortization |
|
88,400 |
|
|
|
76,949 |
|
Deferred taxes |
|
(13,860 |
) |
|
|
— |
|
Share-based compensation |
|
25,312 |
|
|
|
1,179 |
|
Movement in credit loss allowances |
|
8,827 |
|
|
|
(146 |
) |
Loss on asset sales |
|
77,140 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
9,754 |
|
|
|
— |
|
(Earnings) recognized from vessels chartered to third parties transferred to Energos |
|
(51,674 |
) |
|
|
(71,536 |
) |
Loss on the disposal of equity method investment |
|
7,222 |
|
|
|
37,401 |
|
Asset impairment expense |
|
4,272 |
|
|
|
— |
|
Other |
|
20,716 |
|
|
|
5,555 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
(Increase) in receivables |
|
(114,030 |
) |
|
|
(14,532 |
) |
(Increase) in inventories |
|
(62,815 |
) |
|
|
(60,710 |
) |
(Increase) decrease in other assets |
|
(91,251 |
) |
|
|
63,576 |
|
Decrease in right-of-use assets |
|
111,561 |
|
|
|
40,655 |
|
Increase in accounts payable/accrued liabilities |
|
255,337 |
|
|
|
75,746 |
|
(Decrease) in lease liabilities |
|
(126,311 |
) |
|
|
(38,885 |
) |
Increase in other liabilities |
|
44,558 |
|
|
|
116,959 |
|
Net cash provided by operating activities |
|
162,968 |
|
|
|
503,877 |
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
||||
Capital expenditures |
|
(1,346,385 |
) |
|
|
(1,465,642 |
) |
Sale of equity method investment |
|
136,365 |
|
|
|
100,000 |
|
Asset sales |
|
328,999 |
|
|
|
— |
|
Other investing activities |
|
(1,694 |
) |
|
|
(1,450 |
) |
Net cash used in investing activities |
|
(882,715 |
) |
|
|
(1,367,092 |
) |
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
||||
Proceeds from borrowings of debt |
|
3,037,127 |
|
|
|
919,625 |
|
Payment of deferred financing costs |
|
(37,983 |
) |
|
|
(6,659 |
) |
Repayment of debt |
|
(2,202,722 |
) |
|
|
— |
|
Payment of dividends |
|
(55,710 |
) |
|
|
(676,918 |
) |
Other financing activities |
|
(5,033 |
) |
|
|
(13,465 |
) |
Net cash provided by financing activities |
|
735,679 |
|
|
|
222,583 |
|
Impact of changes in foreign exchange rates on cash and cash equivalents |
|
(28,898 |
) |
|
|
1,608 |
|
Net (decrease) in cash, cash equivalents and restricted cash |
|
(12,966 |
) |
|
|
(639,024 |
) |
Cash, cash equivalents and restricted cash – beginning of period |
|
310,814 |
|
|
|
855,083 |
|
Cash, cash equivalents and restricted cash – end of period |
$ |
297,848 |
|
|
$ |
216,059 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240809310027/en/
Investor Relations:
ir@newfortressenergy.com
Media Relations:
Ben Porritt
press@newfortressenergy.com
(516) 268-7403
Source: New Fortress Energy Inc.
FAQ
What was New Fortress Energy's (NFE) Adjusted EBITDA for Q2 2024?
Why did NFE's Q2 2024 results fall short of expectations?
What is NFE's Adjusted EBITDA forecast for 2024 and 2025?