Stabilis Solutions(US:SLNG)2025-02-26 20:21Financial Data and Key Metrics Changes - Revenue during Q4 2024 decreased by 4% compared to Q4 2023, primarily due to lower oil and gas customer activity, partially offset by a 35% increase in aerospace revenues, a 23% increase in power generation revenues, and over 500% growth in marine bunkering revenues [18][19] - Q4 net income was $2.1 million or $0.11 per diluted share, compared to $1.4 million or $0.08 per diluted share in Q4 2023 [19] - Full year revenues were $73.3 million, an increase of 0.2% compared to 2023, with adjusted EBITDA rising to $11.8 million from $6.8 million in 2023 [20][21] Business Line Data and Key Metrics Changes - Approximately 49% of Q4 revenues were derived from aerospace and marine customers, compared to 14% in Q4 2023 [19] - The company generated over 8 million additional gallons delivered to customers in 2024, despite lower natural gas commodity prices impacting revenue [20] Market Data and Key Metrics Changes - The company focused on high-potential markets including marine, aerospace, and distributed power solutions, with significant capital expenditures directed towards growth investments in these areas [15][22] Company Strategy and Development Direction - The company is committed to operational efficiency and disciplined capital management while prioritizing growth in select markets [14][15] - Investments in infrastructure along the U.S. Gulf Coast are aimed at scaling to serve both new and existing customers [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's capabilities and relationships to scale the business, despite acknowledging that growth may not be linear [14] - The company is working on multiple paths to deploy new liquefaction capacities and is focused on securing contracts in marine, aerospace, and distributed power markets [28][29] Other Important Information - The company had total cash and equivalents of $9 million and $4.3 million of availability under credit facilities as of December 31, 2024 [23] - Total debt outstanding was $9.3 million, resulting in a net debt to trailing twelve-month adjusted EBITDA of just 0.03 times [23] Q&A Session Summary Question: Timetable for the relocation of liquefaction train - Management confirmed the relocation of the liquefaction train to the Gulf Coast and is working on financing and customer contracts for deployment in marine and aerospace markets [26][28] Question: G&A line decrease in Q4 - Management noted that the decrease was due to adjustments in bonus accruals and lower professional services, with expectations for a similar run rate going forward [30][33] Question: Change in drilling gallons for 2024 - Management attributed the decrease to operational efficiency, timing of contracts, and a slower uptake in aerospace and oil and gas markets [35][37] Question: Costs and timing for the new train - Estimated costs to finish construction on the new train range from $20 million to $25 million, with a completion timeline of 9 to 12 months depending on location [48][50] Question: Marine bunkering business and customer base - Management highlighted the growth potential in the marine bunkering space, with various types of ships adopting LNG and the company working to be a primary supplier [51][55] Question: Data centers and distributed power - Management clarified that data centers fall under the distributed power category, which is a key growth area for the company, and they are actively working on projects in this space [62][66]