New Fortress Energy(NFE) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a revenue of $561 million for Q2 2023, with adjusted EBITDA of $246 million, leading to a total of $686 million for the first half of 2023 [111] - The EBITDA guidance for 2023 is now $1.6 billion, with a forecast of $2.4 billion for 2024, reflecting a slight reduction due to project delays [28][29] - The net income for the quarter was $120 million, translating to $0.58 per share on a diluted basis [112] Business Line Data and Key Metrics Changes - The company is transitioning from a revenue mix of 50% merchant sales to nearly all customer sales, enhancing the quality and reliability of earnings [29] - Segment operating margins were reported at $239 million for terminals and $54 million for the ship segment [82] Market Data and Key Metrics Changes - The company has significantly increased its LNG capacity, growing from 40% of 1 ton capacity at the start to 620 TBtus today, with a projection of 920 TBtus next year [23] - The company is expanding its operations in Brazil with two large terminals coming online, increasing throughput capacity by nearly 35% [30] Company Strategy and Development Direction - The company is focused on becoming a major player in the green hydrogen sector, with plans for new facilities in the Northeastern US, Pacific Northwest, and Gulf Coast [14] - The strategy includes leveraging existing infrastructure to minimize additional capital expenditures while maximizing revenue potential [32] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant commercial opportunities in Puerto Rico, viewing it as a potential model for energy transformation [3][70] - The company is optimistic about the future, expecting immediate impacts on cash flow and deleveraging as projects come online [5][20] Other Important Information - The company has invested $3.2 billion in infrastructure projects that are transitioning to revenue-generating assets, which is expected to significantly enhance revenue potential [22] - The company has closed on an additional $500 million in financing, including a $400 million term loan against FLNG 1 [114] Q&A Session Summary Question: What is the outlook for CapEx guidance for 2024? - Management indicated a significant reduction in CapEx guidance due to the transition from construction to operational phases, allowing for easier financing [123][140] Question: Can you provide context on Puerto Rico's contribution to future earnings? - Management refrained from providing specific guidance on terminal or country basis but acknowledged the significant potential in Puerto Rico [151]