New Fortress Energy(NFE) - 2025 Q1 - Quarterly Results

Main Announcement & Q1 2025 Results Overview Sale of Jamaican Assets New Fortress Energy (NFE) has finalized the sale of its Jamaican assets and operations to Excelerate Energy for $1.055 billion, with proceeds primarily allocated to reducing corporate debt and aligning with the company's near-term focus on asset sales and deleveraging - NFE completed the sale of its Jamaican assets to Excelerate Energy, Inc. for $1.055 billion[1] - The assets sold include the LNG import terminal in Montego Bay, an offshore floating storage and regasification terminal in Old Harbour, and a 150 MW Combined Heat and Power Plant in Clarendon[2] - Proceeds will be used to pay down $270 million of the Revolving Credit Facility and $55 million of the Term Loan A facility, with the remainder added to cash on the balance sheet[7] First Quarter 2025 Financial Highlights For the first quarter of 2025, NFE reported an Adjusted EBITDA of $82 million, a net loss of $197 million, or $(0.73) per diluted share, and ended the quarter with a total cash balance of $827 million Q1 2025 Financial Metrics | Metric | Value | | :--- | :--- | | Adjusted EBITDA | $82 million | | Net loss | $197 million | | EPS (fully diluted) | $(0.73) | | Total cash balance | $827 million | | Unrestricted cash | $448 million | - The Q1 2025 Adjusted EBITDA of $82 million is considered to be entirely from core earnings, consisting of terminal and vessel operations, without one-time gains seen in prior periods[4] - Revenue from terminal operations has been largely unchanged since the termination of the temporary power contract in Q1 2024, as the emergency power plants were sold to the Puerto Rico Electric Power Authority in March 2024[4] Business Outlook and Development Updates NFE expects future earnings to be boosted by one-time events and core earnings growth from development projects in Brazil and Nicaragua, along with expansions in Puerto Rico, with significant progress made on the CELBA power plant and Fast LNG asset optimization - Future earnings in 2025 are expected to be boosted by one-time events such as a FEMA claim, FSRU sub-charters, and a Genera incentive payment[5] - Development projects in Brazil are progressing on-time and on-budget, with the 624 MW CELBA plant ~95% complete and expected to start generating earnings in Q3 2025, while the adjacent PortoCem plant is over 50% complete[5] - The company's Fast LNG asset has been fully commissioned and is undergoing optimization projects to increase its liquefaction capacity[5] Financial Statements and Non-GAAP Reconciliations Consolidated Statements of Operations In Q1 2025, NFE's total revenues decreased to $470.5 million from $690.3 million in Q1 2024, resulting in an operating loss of $18.5 million and a net loss of $197.4 million, or $(0.73) per diluted share, a significant shift from prior-year profitability Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | (in millions, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $690.3 | | Operating (Loss) Income | $(18.5) | $184.5 | | Net (Loss) Income | $(197.4) | $56.7 | | Diluted (Loss) Income per Share | $(0.73) | $0.26 | Consolidated Statements of Operations (Q1 2025 vs Q4 2024) | (in millions) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Total Revenues | $470.5 | $679.0 | | Operating (Loss) Income | $(18.5) | $230.3 | | Net (Loss) | $(197.4) | $(223.5) | Consolidated Balance Sheets As of March 31, 2025, NFE's balance sheet reported total assets of $13.03 billion and total liabilities of $11.12 billion, with total stockholders' equity at $1.87 billion, reflecting slight increases in assets and liabilities compared to December 31, 2024, and including assets and liabilities held for sale related to the pending Jamaica transaction Consolidated Balance Sheets | (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $447.9 | $492.9 | | Total current assets | $1,473.7 | $1,610.1 | | Total assets | $13,028.1 | $12,867.5 | | Liabilities & Equity | | | | Total current liabilities | $1,473.7 | $1,707.4 | | Long-term debt | $8,931.5 | $8,355.7 | | Total liabilities | $11,115.8 | $10,777.8 | | Total stockholders' equity | $1,871.5 | $1,999.1 | Non-GAAP Financial Measures NFE's key non-GAAP metrics, Adjusted EBITDA and Total Segment Operating Margin, experienced significant year-over-year declines in Q1 2025, primarily driven by a decrease in the Terminals and Infrastructure segment's operating margin Adjusted EBITDA (in millions) | (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $82.3 | $313.5 | $340.1 | Segment Operating Margin (in millions) | Segment Operating Margin (in millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Terminals and Infrastructure | $74.6 | $206.1 | $350.1 | | Ships | $31.4 | $34.1 | $34.2 | | Total Segment Operating Margin | $106.0 | $240.2 | $384.3 | - The company defines Adjusted EBITDA as net income adjusted for items including interest, taxes, depreciation, amortization, transaction costs, non-cash share-based compensation, and other non-recurring or non-operating expenses to provide a supplemental view of ongoing business performance[20][21]