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New Fortress Energy - $NFE - Earnings Analysis: Strong Adjusted EBITDA performance in Q4 2024 and full year 2024.

By sagebytes in Energy —

Business Model

New Fortress Energy generates revenue through the operation of natural gas and liquefied natural gas (LNG) infrastructure, an integrated fleet of ships, and logistics assets. Key activities include delivering turnkey energy solutions to global markets, supplying gas to power plants, and vessel chartering.

Revenue Sources

  • Operating revenue (e.g., sales of natural gas to power plants and industrial customers).
  • Vessel charter revenue (leasing of ships).
  • Contract novation income (income from contract restructuring).
  • Other revenue, can include items like construction revenue.

Income Statement Analysis

  • Total Revenues increased by 19.64% from Q3 2024 to Q4 2024.
  • Cost of Sales decreased by 11.34% from Q3 2024 to Q4 2024.
  • Operating Income increased significantly by 189.52% from Q3 2024 to Q4 2024.
  • Net income (loss) dramatically decreased from profit to a significant loss from Q3 2024 to Q4 2024

Capital Allocation

NFE is focused on deleveraging, simplifying the capital structure, and reducing debt costs. They refinanced debt, issued equity, and plan to sell assets to pay down debt. They are investing in projects such as Fast LNG and Brazil power plants, while also returning capital through debt reduction.

Management Commentary

This has been a strong fourth quarter for the Company as we achieved Adjusted EBITDA of $313 million, surpassing our guidance of $200-$220 million.

Earnings for the year also held strong as we achieved Adjusted EBITDA of $950 million, surpassing our guidance of $835-$855 million.

Our Fast LNG asset has been completed and was placed into service for accounting purposes in December 2024.

Net loss of $224 million in the fourth quarter of 2024 and $242 million in the full year 2024, driven primarily by costs incurred with refinancing our debt including a Q4 loss on extinguishment of debt of $260 million.

Overall Sentiment: Positive, with a focus on growth, deleveraging, and optimizing assets.

Disclaimer: This analysis is based on company filings and public information available as of March 3, 2025. It is for informational purposes only and not financial advice. Past performance does not guarantee future results. Please make investment decisions at your own discretion and after consulting with a financial professional.