New Fortress Energy Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
New Fortress Energy Reports Second Quarter 2024 Financial Results
New Fortress Energy Inc. (NASDAQ:NFE) ("NFE") has announced its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | Not provided | Not provided | Not provided | Not provided | Not provided | $509.23M |
| Net Income | $(87)M | Not provided | Not provided | Not provided | Not provided | Not provided |
| Adjusted EBITDA | $120M | Not provided | Not provided | Not provided | Not provided | Not provided |
| Adjusted EPS | $(0.41) | $(0.24) | $0.30 | Not provided | Not provided | $0.07 |
| EPS | $(0.44) | Not provided | Not provided | Not provided | Not provided | Not provided |
Interpretation of Financial Performance
New Fortress Energy showed weaker-than-expected financial performance in Q2 2024, with Adjusted EBITDA of $120 million, well below the expectation of $275 million. The net loss stood at $87 million, and Adjusted EPS was $(0.41). Delays in the FLNG 1 project significantly impacted these results. The company's reported Adjusted EPS of $(0.41) and EPS of $(0.44) were notably below the consensus estimate of $0.07, pointing to considerable headwinds.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Previous Guidance |
|---|---|---|
| Terminals and Infrastructure | Not provided | Not provided |
| Ships | Not provided | Not provided |
Interpretation of Segment Performance
Specific revenue amounts for major segments were not provided in the report; however, the overall underperformance can be linked to the delayed service of the FLNG 1 project, which impacted revenue collection timelines.
Operational Data
- FLNG 1 Project Completed: Yes, with First Cargo expected in August 2024.
- Funds from Operations per Share: $(0.23) on a fully diluted basis.
Comments from Company Officers
Wes Edens, Chairman and CEO, expressed disappointment over the delays but highlighted the completion of the FLNG 1 project as a milestone. He emphasized the project's pivotal role in the company's long-term growth and operational efficiency.
Dividends and Share Repurchase Program
NFE declared a dividend of $0.10 per share, with a record date of September 13, 2024, and a payment date of September 27, 2024.
Forward Guidance
NFE forecasts an Adjusted EBITDA goal of $1.4-1.5 billion for the full year 2024 and $1.3 billion for 2025, indicating an optimistic outlook based on expanded business operations and new projects coming online.
Stock Price Movement
Following the earnings release, the stock price experienced a minor increase of 1.26%.
In conclusion, New Fortress Energy faced significant operational challenges during Q2 2024 but remains focused on future growth with the successful launch of the FLNG 1 project. While key financial figures missed expectations, forward guidance suggests potential recovery and expansion in the latter half of the year and upcoming years.
