New Fortress Energy Q2 earnings impacted by LNG project delays

New Fortress Energy (NFE) has announced its financial results for Q2 2024, highlighting both challenges and future potential.

The company reported an adjusted EBITDA of US$120M, which fell short of expectations due to delays in bringing the Fast LNG 1 project into service. This delay, with the project originally expected to be completed at the beginning of the quarter, resulted in approximately US$150M in lost operating margin, contributing to a net loss of US$87M for the period.

Despite these setbacks, NFE achieved a major milestone by completing its Fast LNG 1 project offshore Altamira, Mexico, with the first LNG cargo expected in August 2024. This project, the fastest large-scale LNG facility ever built, will enhance the company’s vertical integration and significantly reduce future capital expenditure.

NFE’s revenue for Q2 2024 was US$428M, reflecting the impact of the project delays compared with US$690M in Q1 2024.

Looking forward, NFE remains optimistic about its growth prospects, forecasting an adjusted EBITDA of US$1.4Bn to US$1.5Bn for the full year 2024.

The completion of the Nicaragua terminal and power asset by the end of 2024 and the Barcarena power asset in 2025 and 2026 are expected to further bolster the company’s performance.

NFE also announced a dividend of US$0.10 per share, payable on 27 September.

The company’s outlook is bolstered by its expanding portfolio, which includes transformative transactions like the sale of power plants developed for FEMA in Puerto Rico and a significant gas contract awarded in March 2024.

Despite the temporary financial setbacks, NFE’s leadership believes the company is well positioned to capitalise on the growing global demand for LNG and maintain its trajectory of expansion and innovation.

“We have a large and expanding business, with a broad and robust portfolio and customers. While we are disappointed in the delay in placing FLNG 1 into service, it is now operational and we are very excited about the future of our business,” said New Fortress Energy, chairman and chief executive Wes Edens.