Stabilis Solutions(US:SLNG)2023-11-09 00:41Revenue Performance - LNG Product revenue for Q3 2023 was $12.1 million, a decrease of 44.5% from $21.8 million in Q3 2022[99] - Total revenues for Q3 2023 were $15.3 million, down 40.7% from $25.8 million in Q3 2022[99] - LNG delivered decreased by 3.0 million gallons in Q3 2023 compared to Q3 2022, resulting in a revenue decrease of $4.4 million[100] - Total revenues decreased by $14.2 million, or 20%, to $55.1 million for the nine months ended September 30, 2023, compared to $69.2 million in the prior year[113] - LNG product revenues fell by $14.3 million, or 24.3%, primarily due to a decrease of 8.9 million gallons delivered to customers[112] Cost and Expenses - Cost of revenues decreased by $7.8 million, or 39%, in Q3 2023, with costs as a percentage of revenue at 79% compared to 77% in Q3 2022[101] - Operating expenses decreased by $14.1 million, or 19.8%, totaling $57.0 million, with cost of revenues down by $12.0 million, or 21.9%[113] Net Income and Loss - The company recorded a net loss from continuing operations of $0.2 million in Q3 2023, compared to a net income of $1.0 million in Q3 2022[99] - Net income from continuing operations was a loss of $1.3 million, an improvement of $0.1 million compared to a loss of $1.4 million in the prior year[112] Cash Flow and Capital Expenditures - Cash provided by operating activities was $5.4 million, down from $11.5 million in the prior year, reflecting lower net income and changes in working capital[128] - Capital expenditures for the nine months ended September 30, 2023, were $9.0 million, primarily for additional liquefaction assets[132] Debt and Financing - The company has $4.9 million in cash and cash equivalents and $10.6 million in outstanding debt as of September 30, 2023[125] - The company entered into a three-year Revolving Credit Facility with a maximum amount of $10.0 million, with no amounts drawn as of September 30, 2023[124] Joint Ventures and Other Income - Net equity income from foreign joint ventures increased by 149.1% to $0.3 million in Q3 2023 compared to $0.1 million in Q3 2022[106] - Net equity income from foreign joint ventures increased by $0.4 million, driven by higher sales in the BOMAY joint venture[119] - Interest income for Q3 2023 was $44,000, a significant improvement from an expense of $0.2 million in Q3 2022[107] - The company recorded a gain of $1.0 million from the disposal of fixed assets related to insurance proceeds for assets damaged in a fire[118] Regulatory and Operational Updates - The company received DOE approval to export LNG up to 51.75 billion cubic feet per year for a term of 28 years, but has not yet initiated exports[95] - The company completed gas pretreatment upgrades at the George West facility in August 2023, allowing it to resume full LNG production rates[96] Accounting Policies - The company has not experienced significant changes in its "Critical Accounting Policies and Estimates" during the three and nine months ended September 30, 2023, compared to the previous year[136] - The financial statements have been prepared in accordance with U.S. GAAP, requiring estimates and assumptions that affect reported amounts of assets and liabilities[136] - There is no assurance that actual results will not differ from the estimates made by the company[136]