New Fortress Energy (NFE) Q4 2024 earnings summary

Executive summary

• Q4 2024 adjusted EBITDA reached $313 million, over 50% above guidance, with full-year adjusted EBITDA at $950 million; 2025 guidance reaffirmed at $1 billion, driven by FLNG 1 exceeding nameplate capacity and robust core market activity in Puerto Rico and Brazil.

• FLNG 1 asset entered service December 2024, operating above nameplate capacity; FLNG 2 construction is over 50% complete, with major modules ready and onshore work to start summer 2024.

• Major capital markets activities included $400 million equity raise, $2.7 billion bond issuance, $900 million revolver extension, $425 million TLB upsize, and refinancing of key facilities, improving liquidity and extending maturities.

• Asset sales in Jamaica, Brazil, and ship charters expected to generate approximately $2 billion for debt reduction and deleveraging.

• Extended Puerto Rico gas supply contract and restructured O&M agreement, securing $110 million payment and cost savings.

Financial highlights

• Q4 2024 segment operating margin was $240 million; full-year 2024 margin just under $1.1 billion.

• Q4 2024 revenue: $679 million; full-year 2024 revenue: $2.36 billion.

• Q4 net loss of $242 million ($1.11/share) and full-year net loss of $270 million ($1.25/share), mainly due to non-cash charges from debt extinguishment.

• Adjusted for non-recurring items, Q4 net income was $29 million ($0.13/share) and full-year net income $101 million ($0.46/share).

• Funds from operations: $68 million in Q4, $263 million for the year; year-end cash balance at $966 million, with $493 million unrestricted.

Outlook and guidance

• 2025 adjusted EBITDA guidance set at $1 billion, supported by FLNG production, asset sales, and organic growth in core markets; asset sales expected to generate $2 billion in net proceeds for debt reduction.

• FLNG 2 construction over 50% complete, with major modules ready; onshore work to start summer 2024.

• Puerto Rico conversions and new builds expected to drive significant volume and margin growth; long-term contracts under negotiation.

• Brazil power auction in June 2025 could double capacity, with 2 GW registered and strong demand for terminal services; targeting both brownfield and greenfield gas-to-power projects.

• Continued commissioning of Fast LNG asset expected to enhance future performance and energy security.