New Fortress Energy(US:NFE)2025-11-21 02:11Financial Performance - The company recognized operating losses and negative operating cash flows during each of the first three quarters of 2025, with a decline in earnings accelerating in Q2 2025 [192]. - Net loss for the nine months ended September 30, 2025, was $1,047.6 million, compared to a net loss of $18.9 million for the same period in 2024 [272]. - The company recognized a goodwill impairment of $582.2 million due to increased weighted average cost of capital and reduced forecasted cash flows for the nine months ended September 30, 2025 [283]. - The company reported an impairment charge of $10.4 million for the three months ended September 30, 2025, primarily related to capitalized development project costs [280]. - Interest expense increased by $401.8 million for the nine months ended September 30, 2025, compared to the same period in 2024, driven by a higher principal balance of $9.1 billion [287]. Revenue and Sales - Total revenue for the Terminals and Infrastructure Segment increased by $38.5 million for the three months ended September 30, 2025, compared to the previous quarter [253]. - Total revenue for the Terminals and Infrastructure Segment decreased by $518.4 million for the nine months ended September 30, 2025, compared to the same period in 2024 [253]. - Revenue recognized for the delivery of power under power purchase agreements from the Barcarena Power Plant in the third quarter of 2025 was $93.8 million [255]. - Revenue from cargo sales was $24.3 million for the three months ended June 30, 2025, and $207.0 million for the nine months ended September 30, 2025, compared to $199.1 million for the same period in 2024, reflecting a 4% increase [259]. - The company delivered 10.7 TBtu of LNG in the third quarter of 2025, down from 14.2 TBtu in the second quarter of 2025, primarily due to the sale of its Jamaica Business [258]. Cash Flow and Financing - Cash flow used in operating activities was $575.2 million for the nine months ended September 30, 2025, a decrease of $721.4 million from the previous year [300]. - Cash flow provided by investing activities was $195.7 million for the nine months ended September 30, 2025, an increase of $1.5 billion from cash used in the same period in 2024 [303]. - Cash flow used in financing activities was $254.3 million for the nine months ended September 30, 2025, an increase of $1.4 billion from the previous year [305]. - The company incurred significant interest payments totaling approximately $350 million during the nine months ended September 30, 2025, due to higher outstanding debt and interest rates [301]. Debt and Obligations - The company has $510.9 million aggregate principal amount outstanding under its 2026 Notes, maturing on September 30, 2026, which could trigger additional debt obligations if not managed [196]. - Total long-term debt obligations amount to $13,930.7 million, with $3,547.2 million due in years 4 to 5 and $3,758.5 million due after 5 years [307]. - The total principal balance on outstanding facilities was $9.1 billion as of September 30, 2025, compared to $7.8 billion as of September 30, 2024 [287]. - The company entered into a forbearance agreement regarding the New 2029 Notes, with a significant interest payment of $163.8 million due on November 17, 2025 [316]. - The company does not expect to comply with the consolidated first lien debt ratio and fixed charge coverage ratio covenants for the quarter ending December 31, 2025 [323]. Strategic Initiatives - The company has initiated a process to evaluate strategic alternatives, including asset sales and capital raising, to improve liquidity [195]. - The company is pursuing a $659 million request for equitable adjustment related to the early termination of its emergency power services contract in Puerto Rico [209]. - The company is in active discussions for new projects globally, although there is no assurance of additional contracts or achieving target revenues [219]. - The company has entered into agreements for the installation and operation of approximately 350MW of additional power at the Palo Seco Power Plant and San Juan Power Plant in Puerto Rico [206]. - The company is evaluating strategies to obtain additional funding for future operations, including proceeds from the sale of the Jamaica Business and modifications to existing agreements [198]. Asset Management - The company completed the sale of its Jamaica business for net cash proceeds of approximately $678 million, with an additional $99 million held in escrow [203]. - The company recognized a gain of $471.0 million from the sale of its Jamaica Business, completed in May 2025 [284]. - The company has approximately $418 million in remaining committed capital expenditures for development projects, excluding any related to Klondike [312]. - The company has binding contracts for LNG volumes from two U.S. LNG facilities, each with a 20-year term, expected to commence in 2027 and 2029 [215]. - The company repurchased all outstanding South Power Bonds for $227.2 million, including a 1.0% prepayment penalty [346]. Operational Developments - The Santa Catarina Facility, placed in service in Q4 2024, has a processing capacity of approximately 500,000 MMBtu of LNG per day and a storage capacity of up to 138,000 cubic meters, targeting a total addressable market of 15 million cubic meters per day of natural gas [212]. - The first FLNG facility began production in July 2024, expected to generate up to 70 TBtu annually, ensuring sufficient supply for 100% of committed volumes across various terminals [215]. - The Barcarena Facility can deliver almost 600,000 MMBtu from LNG per day and has a 15-year gas supply agreement with Norsk Hydro ASA for the Alunorte Alumina Refinery [229]. - The PortoCem Power Plant, utilizing a 1.6GW capacity reserve contract, is expected to be completed in 2026, adjacent to the Barcarena Facility [231]. - The ZeroPark I facility in Beaumont, Texas, is expected to produce up to 86,000 kg of clean hydrogen per day, with a binding offtake commitment secured [238].