According to the company’s website press release on May 4, 2023, New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”) reported its financial results for the first quarter of 2023.
Summary Highlights
- Pleased to report record quarterly Adjusted EBITDA(1) of $440 million for Q1 2023
- NFE's net income for Q1 2023 was $152 million
- Adjusted EPS for Q1 2023 was $0.90 per share on a fully diluted basis and $0.71 when including losses on disposal of certain assets
- On track to achieve our Illustrative Adjusted EBITDA Goal(2) of ~$2.0 billion for 2023
- The company is announcing a 2023 Illustrative Adjusted Net Income Goal(2) of ~$1.2 billion
- Our 2023 Illustrative Adjusted Net Income Goal(2), if achieved, would result in a 6x increase in net income relative to 2022
Puerto Rico
- Genera PR LLC, an independently managed subsidiary of NFE, was awarded a 10-year contract(3) to manage PREPA's thermal power generation system of approximately 3,600 MW
- Contract consists of a $22.5 million annual payment and up to $100 million of annual incentives
- Intended to enhance grid reliability and reduce power costs for Puerto Rican consumers and businesses
- Awarded 350 MW of emergency power contracts(4) via U.S. Army Corps' Puerto Rico Power System Stabilization Task Force
- Currently mobilizing power generation assets to Palo Seco and San Juan to start providing capacity in the second quarter of 2023(5)
Fast LNG
- Construction of our first Fast LNG unit is 90%+ Complete(7) and Deployment(7) to Altamira is expected in June 2023(5)
- We expect to complete Commissioning(7) of our first Fast LNG unit in the shipyard and on-location at the Altamira site and continue to anticipate First Gas and COD(7) in July 2023 and August 2023, respectively(5)
- FLNG 2 and FLNG 3 are already under construction, and all long-lead items have been procured
- Deployment(7) and Ready for Installation(7) expected in the second half of 2024(5)
- We recently signed a non-binding Letter of Intent with CFE to explore installing FLNG 2 and FLNG 3 at an underutilized existing onshore terminal in Altamira
Terminals
- We have Completed(7) the Barcarena terminal and expect First Gas(9) to Norsk Hydro in late 2023(5); we remain on schedule and, also in 2023(5), expect to commence Operations(7) at our Santa Catarina terminal
- Separately, Construction(10) of our 630 MW power plant at Barcarena is underway pursuant to a fixed-price, date-certain EPC contract with Mitsubishi and Toyo Setal; Operations(7) expected to commence in July 2025(5) pursuant to 25-year PPAs with Brazilian distribution companies
Commercial
- We are finalizing our agreement(8) to sell our 135 MW La Paz power plant to CFE for approximately $180 million, and the transaction is expected to close in the third quarter of 2023(5)
- Awarded 353 MW of capacity contract(6) with a 10-year duration from the Single Electricity Market Operator (SEMO), the operator of Ireland's electric grid
- Expecting to finalize permitting and construction contract for a 600 MW combined-cycle natural gas power plant beginning operations in 2026, to be supplied by our Shannon LNG terminal in Ballylongford
Hydrogen
- Construction(10) on our first hydrogen plant is progressing on schedule in Beaumont (120 MW, ~50,000 kg/d), an industrial hub in Texas
- We have several other green hydrogen projects in various stages of Development(10) with a focus on sites with strategic logistics, low-cost power, and strong regional hydrogen demand
Other Developments
- We sold our ownership stake(11) in the Hilli in exchange for the return of 4.1 million NFE shares, $100 million in cash, and the extinguishment of $323 million in Hilli-related debt
- We have historically funded our growth through a combination of asset sales and operating cash flow, and we believe we have sufficient liquidity to complete our capital projects without the need for external financing
On May 3, 2023, NFE’s Board of Directors approved a dividend of $0.10 per share, with a record date of June 15, 2023 and a payment date of June 28, 2023.
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, May 4, 2023 at 8:00 A.M. Eastern Time. The conference call may be accessed by dialing (888) 224-1121 (toll free from within the U.S.) or +1-323-794-2575 (from outside of the U.S.) fifteen minutes prior to the scheduled start of the call; please reference “NFE First Quarter 2023 Earnings Call” or conference code 9863837.
A simultaneous webcast of the conference call will be available to the public on a listen-only basis 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 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,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Forward looking statements include: illustrative financial metrics and other similar metrics, including goals, expected financial growth and margins, among others; benefits to be derived from our projects in Puerto Rico, including enhancement of grid reliability and reduction of power costs, among others; ability to maintain our expected development timelines; expectations regarding our ability to construct, complete and commission our projects on time and within budget; the execution of definitive documents and their related terms and conditions, including without limitation the sales price of the La Paz power plant to CFE; and all the information in the exhibits to this press release. 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 proposed transactions may not be completed in a timely manner or at all; 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 (including coronavirus (COVID-19)) 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 NFE’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 these forward-looking statements, even though our situation may change in the future. New factors emerge from time to time, and it is not possible for NFE 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.
