Stabilis Solutions(US:SLNG)2024-03-07 17:22Financial Data and Key Metrics Changes - The company achieved its first full year of profitability since going public, marking a significant milestone [4] - Fourth quarter 2023 results showed an 18% sequential revenue growth and a return to profitability since Q1 2023 [20] - Generated $1.3 million in cash from operations in Q4 and $6.7 million for the full year, supporting $10.3 million in total capital investments [22] Business Line Data and Key Metrics Changes - The marine business accounted for approximately 14% of total revenue in 2023, with expectations for this to increase to about one-third of total revenue in 2024 [10] - Marine revenue grew at a compounded annual growth rate of 122% over the past two years [10] - The company is shifting its business model from commodity spot sales to longer-duration, take-or-pay contracts, enhancing cash flow visibility [7] Market Data and Key Metrics Changes - The aerospace sector saw sales volumes of LNG to aerospace customers reach approximately 3.4 million gallons in 2023, representing 7% of total volumes [14] - The company anticipates significant increases in quoting activity in both marine and aerospace markets entering 2024 [14] Company Strategy and Development Direction - The company is focused on building a profitable clean fueling solutions platform and expanding its capabilities in high-traffic ports across the U.S. [11] - Plans to optimize existing asset bases and supply chains while prioritizing scalable investments to support demand growth in marine, aerospace, and other markets [18] - The company aims to secure long-term contracts to de-risk investments and ensure consistent cash flow [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's unique position within the small-scale LNG market, highlighting its infrastructure and customer relationships [6] - The company is not overly concerned about potential regulatory impacts on LNG exports, as it has already secured permanent licenses for export [63] - Management expects that by mid-2024, its liquefaction plants will be effectively sold out for the remainder of the year and into 2025 [15][55] Other Important Information - The company invested over $7.8 million in growth-related investments in its marine capabilities in 2023 [16] - The liquidity position at year-end 2023 included over $11 million in cash and credit availability, with a net leverage ratio of 0.6x adjusted EBITDA [22] Q&A Session Summary Question: What is the timeline for building and finishing the new LNG train? - Management indicated that it could take anywhere from 15 to 24 months depending on scale and location [27] Question: What percentage of volumes in 2024 will be under long-term contracts versus spot business? - The goal is to have 100% of the company's assets under term contracts, moving away from the spot market [38] Question: How much production volume was missed due to issues at George West? - The EBITDA impact from the issues at George West was estimated at about $3.2 million [46] Question: What is the status of the export license? - Management is in discussions for international offtake and plans to leverage the export license for demand in Europe [48] Question: How does the current administration's stance on fossil fuels impact the company? - Management believes low natural gas prices are beneficial and that the company is well-positioned with its existing export licenses [63]