STOCK TITAN

New Fortress Energy Announces Third Quarter 2024 Results

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags

New Fortress Energy (NFE) reported its Q3 2024 financial results with Adjusted EBITDA of $176 million, meeting guidance of $175 million. The company posted revenues of $567.5 million and net income of $11.3 million, resulting in EPS of $0.03. NFE announced strategic financing transactions, including a planned refinancing of $2.7 billion in senior secured notes extending to 2029, extension of ~$900 million revolving credit facility, and completion of a $400 million equity raise. The company's Terminals and Infrastructure segment recorded operating margin of $184.8 million, while Ships segment contributed $34.8 million.

New Fortress Energy (NFE) ha riportato i risultati finanziari per il terzo trimestre del 2024, con un EBITDA rettificato di 176 milioni di dollari, in linea con le previsioni di 175 milioni di dollari. L'azienda ha registrato ricavi per 567,5 milioni di dollari e un utile netto di 11,3 milioni di dollari, portando a un utile per azione (EPS) di 0,03 dollari. NFE ha annunciato operazioni di finanziamento strategico, inclusi un rifinanziamento previsto di 2,7 miliardi di dollari in obbligazioni garantite senior fino al 2029, un'estensione della linea di credito revolving di circa 900 milioni di dollari e il completamento di una raccolta di capitali di 400 milioni di dollari. Il segmento Terminali e Infrastrutture dell'azienda ha registrato un margine operativo di 184,8 milioni di dollari, mentre il segmento Navi ha contribuito con 34,8 milioni di dollari.

New Fortress Energy (NFE) informó sus resultados financieros del tercer trimestre de 2024, con un EBITDA ajustado de 176 millones de dólares, cumpliendo con la guía de 175 millones de dólares. La compañía reportó ingresos de 567,5 millones de dólares y un ingreso neto de 11,3 millones de dólares, resultando en un EPS de 0,03 dólares. NFE anunció transacciones de financiamiento estratégico, incluyendo un refinanciamiento planificado de 2,7 mil millones de dólares en notas senior garantizadas que se extenderán hasta 2029, una extensión de aproximadamente 900 millones de dólares en una línea de crédito revolvente, y la finalización de una recaudación de capital de 400 millones de dólares. El segmento de Terminales e Infraestructura de la empresa registró un margen operativo de 184,8 millones de dólares, mientras que el segmento de Barcos contribuyó con 34,8 millones de dólares.

New Fortress Energy (NFE)는 2024년 3분기 재무 결과를 발표했으며, 조정된 EBITDA는 1억 7600만 달러로 1억 7500만 달러의 가이드를 충족했습니다. 이 회사는 5억 6750만 달러의 수익과 1130만 달러의 순이익을 기록하여 주당순이익(EPS)은 0.03달러입니다. NFE는 2029년까지 연장되는 27억 달러의 고정담보채권 재정 거래를 계획하는 등 전략적 자금 조달 거래를 발표했습니다. 약 9억 달러의 회전 신용 시설 연장과 4억 달러 규모의 자본 조달도 완료했습니다. 회사의 터미널 및 인프라 부문은 1억 8480만 달러의 운영 마진을 기록했으며, 선박 부문은 3480만 달러에 기여했습니다.

New Fortress Energy (NFE) a publié ses résultats financiers pour le troisième trimestre de 2024, avec un EBITDA ajusté de 176 millions de dollars, conforme à l'orientation de 175 millions de dollars. L'entreprise a affiché des revenus de 567,5 millions de dollars et un bénéfice net de 11,3 millions de dollars, entraînant un bénéfice par action (EPS) de 0,03 dollar. NFE a annoncé des transactions de financement stratégique, y compris un refinancement prévu de 2,7 milliards de dollars en obligations sécurisées senior s'étendant jusqu'en 2029, une extension d'une facilité de crédit renouvelable d'environ 900 millions de dollars et l'achèvement d'une levée de fonds de 400 millions de dollars. Le segment Terminaux et Infrastructures de l'entreprise a enregistré une marge opérationnelle de 184,8 millions de dollars, tandis que le segment Navires a contribué avec 34,8 millions de dollars.

New Fortress Energy (NFE) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem bereinigten EBITDA von 176 Millionen Dollar, was den Erwartungen von 175 Millionen Dollar entspricht. Das Unternehmen meldete Einnahmen von 567,5 Millionen Dollar und einen Nettoertrag von 11,3 Millionen Dollar, was zu einem Gewinn pro Aktie (EPS) von 0,03 Dollar führte. NFE kündigte strategische Finanzierungsmaßnahmen an, darunter eine geplante Refinanzierung von 2,7 Milliarden Dollar in vorrangigen besicherten Anleihen bis 2029, die Verlängerung einer revolvierenden Kreditlinie von etwa 900 Millionen Dollar und den Abschluss einer Kapitalerhöhung über 400 Millionen Dollar. Der Bereich Terminals und Infrastruktur des Unternehmens erzielte eine Betriebsrendite von 184,8 Millionen Dollar, während der Bereich Schiffe mit 34,8 Millionen Dollar beitrug.

Positive
  • Met Q3 Adjusted EBITDA guidance of $175 million
  • Revenue increased to $567.5 million from $428.0 million in Q2 2024
  • Successful completion of $400 million equity raise
  • Returned to profitability with $11.3 million net income vs Q2 2024 loss
Negative
  • Segment Operating Margin declined to $219.7 million from $249.7 million YoY
  • Significant dilution from $400 million equity raise
  • Large debt refinancing needed ($2.7 billion)
  • EPS decreased to $0.03 from $0.30 YoY

Insights

The Q3 2024 results show mixed performance with some concerning trends. Revenues increased to $567.5M compared to Q2, but net income dropped significantly to $11.3M from $62.3M in the year-ago quarter. The Adjusted EBITDA of $176M met guidance but indicates thin margins. Segment operating margins declined across both Terminals & Infrastructure and Ships segments.

The strategic refinancing of $2.7B in senior secured notes and $400M equity raise are critical moves to address liquidity concerns. The debt maturity extension to 2029 provides breathing room, but the need for additional capital and potential asset sales suggests cash flow pressures. The company's focus on seeking partners for various assets indicates a strategic pivot towards de-risking the balance sheet.

The operational performance reflects challenges in the LNG market. While Fast LNG reached nameplate production, the declining segment margins suggest pricing pressures and increased operational costs. The Ships Segment margin dropped to $34.8M from $54.9M year-over-year, indicating potential market overcapacity or rate pressures.

The strategic pivot towards seeking partners for key assets in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua and FLNG 1 suggests a shift from aggressive expansion to consolidation. This could help optimize capital allocation but may impact future growth potential. The focus on liquidity enhancement over growth signals a more defensive posture in response to market conditions.

NEW YORK--(BUSINESS WIRE)-- New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”) today reported its financial results for the third quarter of 2024.

Summary Highlights

  • Adjusted EBITDA(1) of $176 million in the third quarter of 2024
  • Net income of $11 million in the third quarter of 2024
  • Adjusted EPS(2) of $0.05 on a fully diluted basis in the third quarter of 2024
  • EPS of $0.03 on a fully diluted basis in the third quarter of 2024
  • Illustrative Adjusted EBITDA Goal(4) of $855 million in the full year 2024

"This has been a strong and steady third quarter for the company as we achieved Adjusted EBITDA of $176 million, matching our guidance of $175 million. This was largely the result of steady volume demand from our terminals and the addition of Fast LNG cargos in our supply portfolio as the liquefier reached nameplate production.

"We announced a series of strategic financing transactions that are intended to increase the Company’s liquidity and financial flexibility. NFE is in the advanced stages of refinancing its corporate debt by exchanging $2.7 billion of senior secured notes, which, upon completion, will extend the company's debt maturities to 2029 and will also extend ~$900 million of its revolving credit facility over the next several years. Additionally, the Company has completed a $400 million equity raise, providing additional liquidity to the business and bridging the Company to positive free cash flow.

"Our strategic focus will now be to identify potential partners for financings, commercial ventures or asset sales for one or more of the Company’s primary businesses, including projects in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua and FLNG 1," said Wes Edens, Chairman and CEO of New Fortress Energy.

Financial Detail

 

Three Months Ended

(in millions)

September 30, 2023

 

June 30, 2024

 

September 30, 2024

Revenues

$

514.5

 

$

428.0

 

$

567.5

Net income (loss)

$

62.3

 

$

(86.9)

 

$

11.3

Diluted EPS

$

0.30

 

$

(0.44)

 

$

0.03

Adjusted net income (loss)(7)

$

61.2

 

$

(84.6)

 

$

10.8

Adjusted EPS(2)

$

0.26

 

$

(0.41)

 

$

0.05

Terminals and Infrastructure Segment Operating Margin(8)

$

194.7

 

$

214.3

 

$

184.8

Ships Segment Operating Margin(8)

$

54.9

 

$

34.1

 

$

34.8

Total Segment Operating Margin(8)

$

249.7

 

$

248.4

 

$

219.7

Adjusted EBITDA(1)

$

208.4

 

$

120.2

 

$

176.2

Please refer to our Q3 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) Reserved

4) “Illustrative Adjusted EBITDA Goal” for the fourth quarter of 2024 and full year 2024 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 SGA assumed to be at approximately $25 million for the fourth quarter of 2024, including the pro rata share of Core SG&A from unconsolidated entities.

This presentation also assumes that (i) the Company engages in mitigation sales related to certain of its LNG contracts, (ii) the Company enters into a potential sale of a rechartering opportunity providing revenue of approximately $75 million to $100 million, (iii) the Company’s subsidiary, Genera PR LLC, receives quarterly incentive payments related to cost savings recognized by PREPA, (iv) the Company receives the revenues from the forward sales transactions entered into during the second quarter of 2024 and (iv) the Company continues to increase volumes related to its gas sales agreement with PREPA.

For the purpose of this presentation, we have assumed an average Total Segment Operating Margin between ($0.28) and $7.30 per MMBtu for all downstream terminal & cargo sale economics in the fourth quarter of 2024 because we assume that (i) we purchase delivered gas at a weighted average of $8.28 in the fourth quarter of 2024 (ii) we will have costs related to shipping, logistics and regasification similar to our current operations which will be reduced when our First FLNG facility is in full production, and those costs will be distributed over the larger volumes. For Vessels chartered to third parties, this measure reflects the revenue from those charters, 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 $145k per day per vessel. For Fast LNG, this measure reflects the difference between the delivered cost of open LNG and the delivered cost of open market LNG less Fast LNG production cost. These costs do not include expenses and income that are required by GAAP to be recorded on our financial statements, including the return of or return on capital expenditures for the relevant project, and selling, general and administrative costs. Our current cost of natural gas per MMBtu is higher than the cost we would need to achieve Illustrative Total Segment Operating Margin Goal, and the primary drivers for reducing these costs are the reduced costs of purchasing gas and the increased sales volumes, which result in lower fixed costs being spread over a larger number of MMBtus sold. References to volumes, percentages of such volumes and the Illustrative Total Segment Operating Margin Goal related to such volumes (i) are not based on the Company’s historical operating results, which are limited, and (ii) do not purport to be an actual representation of our future economics. 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.

5) Reserved.

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 Thursday, November 7, 2024 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing (888) 204-4368 (toll-free from within the U.S.) or +1-323-994-2093 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference “NFE Third-Quarter 2024 Earnings Call” or conference code 5050993.

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; our ability to successfully execute its refinancing transactions; our ability to explore with potential strategic partners financings, commercial ventures or asset sales for one or more of its primary businesses, including projects in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua and FLNG 1, and future strategic plans. These forward-looking statements are necessarily estimates based upon current information and involve a number of risks, uncertainties and other factors, many of which are outside of the Company’s control. Actual results or events may differ materially from the results anticipated in these forward-looking statements. Specific factors that could cause actual results to differ from those in the forward-looking statements include, but are not limited to: risks related to the development, construction, completion or commissioning schedule for the facilities; risks related to the operation and maintenance of our facilities and assets; failure of our third-party contractors, equipment manufacturers, suppliers and operators to perform their obligations for the development, construction and operation of our projects, vessels and assets; our ability to implement our business strategy; the risk that our proposed financing transactions may not be completed in a timely manner or at all, inability to successfully develop and implement our technological solutions, including our Fast LNG technology, or that we do not receive the benefits we expect from the Fast LNG technology; cyclical or other changes in the LNG and natural gas industries; competition in the energy industry; the receipt of permits, approvals and authorizations from governmental and regulatory agencies on a timely basis or at all; new or changes to existing governmental policies, laws, rules or regulations, or the administration thereof; failure to maintain sufficient working capital and to generate revenues, which could adversely affect our ability to fund our projects; adverse regional, national, or international economic conditions, adverse capital market conditions and adverse political developments; and the impact of public health crises, such as pandemics and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets. These factors are not necessarily all of the important factors that could cause actual results to differ materially from those expressed in any of the Company’s forward-looking statements. Other known or unpredictable factors could also have material adverse effects on future results. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no duty to update or revise any forward-looking statements, even though our situation may change in the future or we may become aware of new or updated information relating to such forward-looking statements. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in New Fortress Energy Inc.’s annual and quarterly reports filed with the Securities and Exchange Commission, which could cause its actual results to differ materially from those contained in any forward-looking statement.

Exhibits – Financial Statements

Condensed Consolidated Statements of Operations

For the three months ended June 30, 2024 and September 30, 2024

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

 

 

For the Three Months Ended

 

June 30, 2024

 

September 30,
2024

Revenues

 

 

 

Operating revenue

$

291,222

 

$

446,048

Vessel charter revenue

 

52,416

 

 

59,668

Other revenue

 

84,368

 

 

61,819

Total revenues

 

428,006

 

 

567,535

 

 

 

 

Operating expenses

 

 

 

Cost of sales (exclusive of depreciation and amortization shown separately below)

 

221,860

 

 

325,292

Vessel operating expenses

 

8,503

 

 

8,254

Operations and maintenance

 

39,292

 

 

32,062

Selling, general and administrative

 

70,578

 

 

82,388

Transaction and integration costs

 

1,760

 

 

3,154

Depreciation and amortization

 

37,413

 

 

35,364

Asset impairment expense

 

4,272

 

 

1,484

Total operating expenses

 

383,678

 

 

487,998

Operating income

 

44,328

 

 

79,537

Interest expense

 

80,399

 

 

71,107

Other expense, net

 

47,354

 

 

(5,836)

Loss on extinguishment of debt, net

 

 

 

Income (loss) before income from equity method investments and income taxes

 

(83,425)

 

 

14,266

Tax provision

 

3,435

 

 

2,953

Net income (loss)

 

(86,860)

 

 

11,313

Net (income) attributable to non-controlling interest

 

(1,994)

 

 

(2,014)

Net income (loss) attributable to stockholders

$

(88,854)

 

$

9,299

 

 

 

 

Net income (loss) per share - basic

$

(0.44)

 

$

0.04

Net income (loss) per share - diluted

$

(0.44)

 

$

0.03

 

 

 

 

Weighted average number of shares outstanding – basic

 

205,070,756

 

 

205,071,771

Weighted average number of shares outstanding – diluted

 

205,851,364

 

 

208,880,044

Adjusted EBITDA
For the three months ended September 30, 2024
(Unaudited, in thousands of U.S. dollars)

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 September 30, 2023, June 30, 2024 and September 30, 2024:

(in thousands)

 

Three Months
Ended
September 30, 2023

 

Three Months
Ended
June 30, 2024

 

Three Months
Ended
September 30, 2024

Total Segment Operating Margin

 

$

249,687

 

$

248,351

 

$

219,654

Less: Core SG&A (see definition above)

 

 

41,289

 

 

38,190

 

 

25,723

Less: Deferred earnings from contracted sales

 

 

 

 

90,000

 

 

60,000

Less: Revenue recognized from deferred earnings from cargo sales

 

 

 

 

 

 

(42,273)

Adjusted EBITDA (Non-GAAP)

 

$

208,398

 

$

120,161

 

$

176,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

62,338

 

$

(86,860)

 

$

11,313

Add: Interest expense

 

 

64,822

 

 

80,399

 

 

71,107

Add: Tax provision

 

 

25,194

 

 

3,435

 

 

2,953

Add: Depreciation and amortization

 

 

48,670

 

 

37,413

 

 

35,364

Add: Asset impairment expense

 

 

 

 

4,272

 

 

1,484

Add: SG&A items excluded from Core SG&A (see definition above)

 

 

7,818

 

 

32,388

 

 

56,665

Add: Transaction and integration costs

 

 

2,739

 

 

1,760

 

 

3,154

Add: Other (income) expense, net

 

 

(2,271)

 

 

47,354

 

 

(5,836)

Add: Changes in fair value of non-hedge derivative instruments and contingent consideration

 

 

(423)

 

 

 

 

Add: (Income) from equity method investments

 

 

(489)

 

 

 

 

Adjusted EBITDA

 

$

208,398

 

$

120,161

 

$

176,204

Segment Operating Margin
(Unaudited, in thousands of U.S. dollars)

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 September 30, 2024

(in thousands of $)

Terminals and Infrastructure (1)

 

Ships

 

Total Segment

 

Consolidation and

Other⁽¹⁾

 

Consolidated

Segment Operating Margin

$ 184,846

 

$ 34,808

 

$ 219,654

 

$ (17,727)

 

$ 201,927

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

 

 

 

 

 

 

82,388

Transaction and integration costs

 

 

 

 

 

 

 

 

3,154

Depreciation and amortization

 

 

 

 

 

 

 

 

35,364

Asset impairment expense

 

 

 

 

 

 

 

 

1,484

Interest expense

 

 

 

 

 

 

 

 

71,107

Other (income), net

 

 

 

 

 

 

 

 

(5,836)

Tax (benefit)

 

 

 

 

 

 

 

 

2,953

Net income

 

 

 

 

 

 

 

 

$ 11,313

Three Months Ended June 30, 2024

(in thousands of $)

Terminals and Infrastructure (1)

 

Ships

 

Total Segment

 

Consolidation and

Other⁽¹⁾

 

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

Interest expense

 

 

 

 

 

 

 

 

80,399

Asset impairment expense

 

 

 

 

 

 

 

 

4,272

Other expense, net

 

 

 

 

 

 

 

 

47,354

Tax provision

 

 

 

 

 

 

 

 

3,435

Net loss

 

 

 

 

 

 

 

 

$ (86,860)

(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 from the fourth quarter of 2024 through 2025. Consolidation and Other adjusts for the inclusion of deferred earnings from contracted sales in Total Segment Operating Margin of $60,000 and $90,000 for the three months ended September 30, 2024 and June 30, 2024, respectively. A portion of these deferred earnings of $42,273 were recognized upon delivery during the third quarter of 2024.

Three Months Ended September 30, 2023

(in thousands of $)

Terminals and Infrastructure ⁽¹⁾

 

Ships

 

Total Segment

 

Consolidation and

Other ⁽¹⁾

 

Consolidated

Segment Operating Margin

$ 194,743

$ 54,944

$ 249,687

 

$ 423

 

$ 250,110

Less:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

 

 

 

 

 

 

49,107

Transaction and integration costs

 

 

 

 

 

 

 

 

2,739

Depreciation and amortization

 

 

 

 

 

 

 

 

48,670

Interest expense

 

 

 

 

 

 

 

 

64,822

Other (income), net

 

 

 

 

 

 

 

 

(2,271)

(Income) from equity method investments

 

 

 

 

 

 

 

 

(489)

Tax provision

 

 

 

 

 

 

 

 

25,194

Net income

 

 

 

 

 

 

 

 

$ 62,338

(1) Consolidation and Other also adjusts for the exclusion of unrealized mark-to-market gains or losses on derivative instruments in our segment measure.

Adjusted Net Income and Adjusted Earnings per Share
(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

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 ended September 30, 2023

 

Three months ended June 30, 2024

 

Three months ended September 30, 2024

Net income (loss) attributable to stockholders

 

$

61,221

 

$

(88,854)

 

$

9,299

Non-cash impairment charges, net of tax

 

 

 

 

4,272

 

 

1,484

Loss on sale of assets

 

 

(7,844)

 

 

 

 

Adjusted net income (loss)

 

$

53,377

 

$

(84,582)

 

$

10,783

 

 

 

 

 

 

 

Weighted-average shares outstanding - diluted

 

 

205,032,928

 

 

205,851,364

 

 

208,880,044

 

 

 

 

 

 

 

Adjusted earnings per share

 

$

0.26

 

$

(0.41)

 

$

0.05

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

For the three and nine months ended September 30, 2024 and 2023

(Unaudited, in thousands of U.S. dollars, except share and per share amounts)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

Revenues

 

 

 

 

 

 

 

Operating revenue

$

446,048

 

$

420,868

 

$

1,346,774

 

$

1,417,175

Vessel charter revenue

 

59,668

 

 

67,287

 

 

158,739

 

 

209,651

Other revenue

 

61,819

 

 

26,307

 

 

180,349

 

 

28,112

Total revenues

 

567,535

 

 

514,462

 

 

1,685,862

 

 

1,654,938

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Cost of sales (exclusive of depreciation and amortization shown separately below)

 

325,292

 

 

191,920

 

 

776,269

 

 

602,626

Vessel operating expenses

 

8,254

 

 

11,613

 

 

25,153

 

 

36,347

Operations and maintenance

 

32,062

 

 

60,819

 

 

139,902

 

 

121,187

Selling, general and administrative

 

82,388

 

 

49,107

 

 

223,720

 

 

157,048

Transaction and integration costs

 

3,154

 

 

2,739

 

 

6,285

 

 

4,787

Depreciation and amortization

 

35,364

 

 

48,670

 

 

123,268

 

 

125,160

Asset impairment expense

 

1,484

 

 

 

 

5,756

 

 

Loss on sale of assets, net

 

 

 

 

 

77,140

 

 

Total operating expenses

 

487,998

 

 

364,868

 

 

1,377,493

 

 

1,047,155

Operating income

 

79,537

 

 

149,594

 

 

308,369

 

 

607,783

Interest expense

 

71,107

 

 

64,822

 

 

228,850

 

 

200,891

Other (income) expense, net

 

(5,836)

 

 

(2,271)

 

 

60,630

 

 

16,150

Loss on extinguishment of debt, net

 

 

 

 

 

9,754

 

 

Income before income from equity method
investments and income taxes

 

14,266

 

 

87,043

 

 

9,135

 

 

390,742

Income from equity method investments

 

 

 

489

 

 

 

 

12,738

Tax provision

 

2,953

 

 

25,194

 

 

28,012

 

 

69,476

Net income (loss)

 

11,313

 

 

62,338

 

 

(18,877)

 

 

334,004

Net (income) attributable to non-controlling interest

 

(2,014)

 

 

(1,117)

 

 

(6,597)

 

 

(3,329)

Net income (loss) attributable to stockholders

$

9,299

 

$

61,221

 

$

(25,474)

 

$

330,675

 

 

 

 

 

 

 

 

Net income (loss) per share – basic

$

0.04

 

$

0.30

 

$

(0.14)

 

$

1.60

Net income (loss) per share – diluted

$

0.03

 

$

0.30

 

$

(0.15)

 

$

1.59

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding – basic

 

205,071,771

 

 

205,032,928

 

 

205,068,178

 

 

206,249,474

Weighted average number of shares outstanding – diluted

 

208,880,044

 

 

205,032,928

 

 

206,836,683

 

 

206,804,833

 

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) Q3 2024 Adjusted EBITDA?

New Fortress Energy reported Adjusted EBITDA of $176 million in Q3 2024, meeting their guidance of $175 million.

How much revenue did NFE generate in Q3 2024?

NFE generated revenue of $567.5 million in Q3 2024, an increase from $428.0 million in Q2 2024.

What financing transactions did NFE announce in Q3 2024?

NFE announced refinancing of $2.7 billion in senior secured notes, extension of ~$900 million revolving credit facility, and completion of a $400 million equity raise.

What was NFE's earnings per share (EPS) in Q3 2024?

NFE reported EPS of $0.03 and Adjusted EPS of $0.05 on a fully diluted basis in Q3 2024.

New Fortress Energy Inc.

NASDAQ:NFE

NFE Rankings

NFE Latest News

NFE Stock Data

2.25B
144.45M
42.55%
53.62%
12.84%
Utilities - Regulated Gas
Natural Gas Distribution
Link
United States of America
NEW YORK