New Fortress Energy (NFE) Q2 2024 earnings summary

Executive summary

• Q2 2024 adjusted EBITDA was $120 million, significantly below expectations due to FLNG 1 delays; net loss for the quarter was $88.9 million.

• FLNG 1 is now operational as of July 19, 2024, expected to generate $500–$590 million annually and transform company economics.

• Major projects in Brazil, Nicaragua, and Mexico are progressing, with new power capacity and terminals nearing completion.

• Over 90% of expected 2024 revenues are contracted, providing high visibility and confidence in guidance.

• Launched Klondike, a new business focused on fast power and data center infrastructure solutions.

Financial highlights

• Q2 2024 revenues were $428 million, down from $690 million in Q1 2024 and $561 million in Q2 2023.

• Q2 2024 adjusted EBITDA was $120 million, down from $340 million in Q1 2024 and $246.5 million in Q2 2023.

• Net loss attributable to stockholders was $88.9 million for Q2 2024, compared to net income of $119.2 million in Q2 2023.

• Funds from operations for H1 2024 totaled $142 million, or $0.69 per share.

• Deferred earnings include a $90 million payment for gas deliveries in Q3/Q4, with $107 million of EBITDA to be recognized later in 2024.

Outlook and guidance

• Full-year 2024 adjusted EBITDA guidance is $1.4–$1.5 billion, with 2025 guidance at $1.3 billion based on existing contracts and new assets.

• Q3 2024 EBITDA will be below target due to partial FLNG 1 production; Q4 expected to reach $275 million per quarter.

• Brazil contracts coming online in 2026 are expected to materially increase EBITDA, with run-rate projected at ~$470–500 million.

• Growth expected from new projects in Puerto Rico, Nicaragua (Q4 2024), and Barcarena, Brazil (2025–2026).

• Exploring strategic alternatives for Brazil business, including a potential IPO or minority sale.