Stabilis Solutions(US:SLNG)2023-05-14 01:53Financial Data and Key Metrics Changes - The company reported revenues of $26.8 million for Q1 2023, which is 32% higher than the same quarter last year but down 9% from Q4 2022 [119] - Net income from continuing operations was $1.1 million in the quarter compared to a net loss of $0.4 million in the year-ago quarter [26] - Adjusted EBITDA for the quarter was $3.5 million, up from $2 million in the year-ago quarter but down from $3.9 million in Q4 2022 [26] Business Line Data and Key Metrics Changes - The marine business contributed approximately 28% of total revenue for the quarter, a significant increase from 4% in Q1 2022 [22] - The industrial business showed strong demand across multiple sectors, particularly in oil and gas, agriculture, and remote power [108] - Aerospace revenue accounted for a little over 5% of total revenue, down about 300 basis points compared to the first quarter of last year [129] Market Data and Key Metrics Changes - The U.S. LNG bunkering market is still in its early stages but is expected to grow significantly due to the International Maritime Organization's mandate to lower sulfur emissions [110] - The company is positioned to capitalize on the increasing demand for LNG as a cleaner fuel alternative, especially in the maritime industry [109] Company Strategy and Development Direction - The company is exploring brown and greenfield expansion opportunities across various U.S. geographies, not limited to the Gulf of Mexico [15] - There is a focus on expanding liquefaction capacity and infrastructure to meet anticipated demand while ensuring capital is deployed thoughtfully [124] - The company aims to expand its offerings into additional clean emerging fuels, indicating a long-term growth strategy [113] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute growth initiatives, citing sufficient liquidity and access to various capital sources [11] - The management acknowledged that the marine business may experience uneven results in the near term as vessel operators finalize their fueling strategies [122] - There is optimism regarding the export business, with the potential for significant volumes as geopolitical factors and natural gas prices evolve [24] Other Important Information - The company has made considerable investments in liquefaction, bunkering, and storage assets to support anticipated growth [11] - The company is well-positioned to be a premier bunkering hub in the U.S. due to favorable competitive positioning in natural gas [116] Q&A Session Summary Question: What caused the uneven results in projects? - Management indicated that the uneven results are due to additional expenses incurred as projects come online and the foundational work being laid for future growth [28] Question: Is bunkering profitable yet? - Management confirmed that bunkering is profitable today and aims to continue this trend as the business scales [16] Question: What percentage of revenues came from aerospace during the quarter? - Aerospace accounted for a little over 5% of total revenues, down about 300 basis points from the previous year [129] Question: How many new ships are expected in the market next year? - Management noted that the number of LNG-fueled vessels is expected to grow significantly, with a sevenfold increase anticipated over the next four years [63] Question: How does the company view the regulatory environment around IMO 2020? - Management acknowledged that while shipping companies should have reacted sooner to the regulations, the reality is that many are now beginning to make the necessary transitions [40]