New Fortress Energy Announces First Quarter 2023 Results

New Fortress Energy release

NEW YORK--(BUSINESS WIRE)--May 4, 2023-- New Fortress Energy Inc. (Nasdaq: NFE) (“NFE” or the “Company”) today reported its financial results for the first quarter of 2023.

Summary Highlights

• Pleased to report record quarterly Adjusted EBITDA⁽¹⁾ of $440 million for Q1 2023
• NFE's net income for Q1 2023 was $152 million
• Adjusted EPS for Q1 2023 was $0.90 per share on a fully diluted basis and $0.71 when including losses on disposal of certain assets
• On track to achieve our Illustrative Adjusted EBITDA Goal⁽²⁾of ~$2.0 billion for 2023
  • Today we are announcing a 2023 Illustrative Adjusted Net Income Goal⁽²⁾ of ~$1.2 billion
  • Our 2023 Illustrative Adjusted Net Income Goal⁽²⁾, if achieved, would result in a 6x increase in net income relative to 2022

Puerto Rico

• Genera PR LLC, an independently managed subsidiary of NFE, was awarded a 10-year contract⁽³⁾to manage PREPA's thermal power generation system of approximately 3,600 MW
  • Contract consists of a $22.5 million annual payment and up to $100 million of annual incentives
  • Intended to enhance grid reliability and reduce power costs for Puerto Rican consumers and businesses
• Awarded 350 MW of emergency power contracts⁽⁴⁾via U.S. Army Corps' Puerto Rico Power System Stabilization Task Force
  • Currently mobilizing power generation assets to Palo Seco and San Juan to start providing capacity in the second quarter of 2023⁽⁵⁾

Fast LNG

• Construction of our first Fast LNG unit is 90%+ Complete⁽⁷⁾ and Deployment⁽⁷⁾ to Altamira is expected in June 2023⁽⁵⁾
  • We expect to complete Commissioning⁽⁷⁾ of our first Fast LNG unit in the shipyard and on-location at the Altamira site and continue to anticipate First Gas and COD⁽⁷⁾ in July 2023 and August 2023, respectively⁽⁵⁾
• FLNG 2 and FLNG 3 are already under construction, and all long-lead items have been procured
  • Deployment⁽⁷⁾ and Ready for Installation⁽⁷⁾ expected in the second half of 2024⁽⁵⁾
  • We recently signed a non-binding Letter of Intent with CFE to explore installing FLNG 2 and FLNG 3 at an underutilized existing onshore terminal in Altamira

Terminals

• We have Completed⁽⁷⁾ the Barcarena terminal and expect First Gas⁽⁹⁾ to Norsk Hydro in late 2023⁽⁵⁾; we remain on schedule and, also in 2023⁽⁵⁾, expect to commence Operations⁽⁷⁾ at our Santa Catarina terminal
• Separately, Construction⁽¹⁰⁾ of our 630 MW power plant at Barcarena is underway pursuant to a fixed-price, date-certain EPC contract with Mitsubishi and Toyo Setal; Operations⁽⁷⁾ expected to commence in July 2025⁽⁵⁾ pursuant to 25-year PPAs with Brazilian distribution companies

Commercial

• We are finalizing our agreement⁽⁸⁾ to sell our 135 MW La Paz power plant to CFE for approximately $180 million, and the transaction is expected to close in the third quarter of 2023⁽⁵⁾
• Awarded 353 MW of capacity contract⁽⁶⁾with a 10-year duration from the Single Electricity Market Operator (SEMO), the operator of Ireland's electric grid
  • Expecting to finalize permitting and construction contract for a 600 MW combined-cycle natural gas power plant beginning operations in 2026, to be supplied by our Shannon LNG terminal in Ballylongford

Hydrogen

• Construction⁽¹⁰⁾ on our first hydrogen plant is progressing on schedule in Beaumont (120 MW, ~50,000 kg/d), an industrial hub in Texas
• We have several other green hydrogen projects in various stages of Development⁽¹⁰⁾ with a focus on sites with strategic logistics, low-cost power, and strong regional hydrogen demand

Other Developments

• We sold our ownership stake⁽¹¹⁾ in the Hilli in exchange for the return of 4.1 million NFE shares, $100 million in cash, and the extinguishment of $323 million in Hilli-related debt
• We have historically funded our growth through a combination of asset sales and operating cash flow, and we believe we have sufficient liquidity to complete our capital projects without the need for external financing

On May 3, 2023, NFE’s Board of Directors approved a dividend of $0.10 per share, with a record date of June 15, 2023 and a payment date of June 28, 2023.

The full release is available here.