New Fortress Energy(US:NFE)2025-06-28 01:46Financial Transactions - The company completed the sale of its Jamaica business for cash consideration of approximately $1.06 billion, receiving net proceeds of about $678 million[157][158]. - The company completed the sale of the Jamaica Business for $1.055 billion in cash, resulting in net proceeds of approximately $678.48 million after debt repayment[211]. - The company is pursuing a $659 million request for equitable adjustment related to the early termination of a contract for emergency power services, indicating potential future cash inflow[163]. - A portion of the proceeds from the Brazil Financing Notes issuance, amounting to $208.7 million, was used to repay the Barcarena Debentures in full[286]. Revenue and Contracts - The company has secured long-term contracts with significant customers, including Jamaica Public Service Company Limited and Puerto Rico Electric Power Authority, enhancing its revenue stability[159]. - The company has developed a 10-year contract for the operation and maintenance of PREPA's thermal generation assets, which commenced on July 1, 2023, providing a stable revenue stream[164]. - The company has entered into a 10-year gas sales agreement with CFE to supply natural gas on a take-or-pay basis, enhancing its revenue predictability[166]. - The company has entered into a 25-year power purchase agreement (PPA) in Nicaragua, expecting to utilize approximately 57,000 MMBtu from LNG per day for the Puerto Sandino Power Plant[189]. Operational Efficiency and Projects - In 2023, the company commissioned 350MW of dual-fuel power generation in Puerto Rico in less than 180 days, demonstrating operational efficiency[161]. - The company is actively developing modular liquefaction facilities and other projects globally, indicating a strategic focus on expanding its LNG supply capabilities[178]. - The first Fast LNG unit has been deployed off the coast of Altamira, Mexico, with a capacity of 1.4 million tons per annum (MTPA) and was placed into service in Q4 2024[185]. - The company plans to deploy up to two additional 1.4 MTPA FLNG units onshore at the existing Altamira LNG import facility, utilizing feedgas from the Sur de Texas-Tuxpan Pipeline[186]. - The La Paz Power Plant in Mexico was placed into service in the third quarter of 2023, with a maximum capacity of up to 135MW, expanding the company's operational footprint[165]. Facilities and Capacity - The Santa Catarina Facility in Brazil has a processing capacity of approximately 500,000 MMBtu per day and is expected to serve a total addressable market of 15 million cubic meters per day of natural gas[168]. - The Barcarena Facility in Brazil can deliver almost 600,000 MMBtu from LNG per day and has a 15-year gas supply agreement with Norsk Hydro ASA[190]. - The Barcarena Power Plant, a 630 MW combined cycle natural gas-fired power plant, is expected to be completed in 2025 and is fully contracted under multiple 25-year power purchase agreements[191]. - The company has secured a capacity contract for a power plant in Ireland for approximately 353 MW of electricity generation, required to be operational by October 2026[194]. Financial Performance - Total revenue for the Terminals and Infrastructure Segment decreased by $97.0 million (approximately 18.4%) for the three months ended March 31, 2025, compared to the previous quarter, and decreased by $215.8 million (approximately 33.3%) compared to the same quarter in 2024[225]. - Segment Operating Margin for the Terminals and Infrastructure Segment was $74.6 million for the three months ended March 31, 2025, a decrease of $131.5 million (approximately 63.8%) from $206.1 million in the previous quarter and a decrease of $275.5 million (approximately 72.5%) from $350.1 million in the same quarter in 2024[224]. - Net income for the three months ended March 31, 2025, was a loss of $197.4 million, an improvement of $26.1 million compared to the loss of $223.5 million in the previous quarter[241]. - Cash flows from operating activities for Q1 2025 were $(31.7) million, a decrease of $101.8 million compared to $70.1 million in Q1 2024[274]. Costs and Expenses - Cost of sales increased by $14.0 million for the three months ended March 31, 2025, compared to the previous quarter[229]. - Operations and maintenance costs increased by $20.5 million for the three months ended March 31, 2025, compared to the previous quarter, primarily due to new facilities placed into service[234]. - The company incurred $103.8 million in cargo sales costs for the first quarter of 2025, compared to $53.9 million in the previous quarter[231]. - Selling, general and administrative expenses decreased by $2.5 million for the three months ended March 31, 2025, compared to the previous quarter, mainly due to share-based compensation reversals[243]. Debt and Financing - The total principal balance on outstanding facilities was $9.4 billion as of March 31, 2025, compared to $7.2 billion as of March 31, 2024[251]. - The company entered into an amendment to the Term Loan B Credit Agreement in March 2025, increasing the total outstanding principal to $1.272 billion, with proceeds primarily used for capital expenditures[281]. - The company issued up to $350 million aggregate principal amount of 15.0% Senior Secured Notes due 2029, with a purchase price of 97.75% of par[286]. - Interest expense increased by $114.2 million for the three months ended March 31, 2025, compared to the previous quarter, primarily due to lower capitalized interest[250]. Market and Risk Factors - A 100-basis point increase or decrease in market interest rates would decrease or increase the fair value of the company's fixed rate debt by approximately $110 million[292]. - A 100-basis point increase or decrease in market interest rates would also decrease or increase the company's annual interest expense by approximately $21 million[293]. - The company has limited exposure to fluctuations in foreign currency exchange rates outside of Brazil, primarily conducting operations in U.S. dollars[295]. - The company does not currently have any derivative instruments to mitigate fluctuations in LNG prices but may consider entering into such instruments in the future[291].