New Fortress Energy (NFE) Q4 2023 earnings summary

Executive summary

• FY23 record Adjusted EBITDA was $1.282bn, FFO $735m and net income attributable to stockholders $547.9m; contracted downstream assets generated nearly 100% of 2H23 Adjusted EBITDA.

• Second-half performance was driven by downstream operations, with no profit from Cargo Sales.

• Barcarena and Santa Catarina terminals entered service, 350 MW of Puerto Rico emergency power was installed, and FLNG 1 advanced to commissioning.

Financial highlights

• FY23 total segment revenue was $2.435bn versus $2.613bn in FY22; GAAP revenue was $2.413bn versus $2.368bn.

• FY23 Adjusted EBITDA was $1.282bn versus $1.071bn; Q4 Adjusted EBITDA was $387.6m versus $208.4m in Q3.

• FY23 net income attributable to stockholders was $547.9m and diluted EPS $2.65; Q4 net income was $214.9m and diluted EPS $1.06.

• FY23 FFO was $735m, or $3.56 per diluted share; Q4 FFO/share was $1.36.

• FY23 operating income was $942.7m versus $238.9m in FY22; adjusted net income was $566.9m and adjusted EPS $2.75.

Outlook and guidance

• Illustrative FY24 goals include total segment revenue ~$3.8bn, Adjusted EBITDA ~$2.0bn+, net income ~$1.0bn, FFO ~$1.3bn, diluted EPS ~$5+ and FFO/share ~$6+.

• Illustrative FY24 gross capex of ~$1.5bn less ~$1.25bn of targeted project financings implies net capex of ~$250m; FFO net of capex target is ~$1.0bn.

• Barcarena and Santa Catarina terminals entered service in February 2024, with revenue expected from March.

• FLNG 1 first LNG was expected in March 2024 and first cargo in April; FLNG 2 commercial operation was targeted for Q1 2026.