New Fortress Energy Shares Amp Up on Q4/FY Financial Results

Source: Streetwise Reports   03/16/2021

Shares of New Fortress Energy traded 28% higher after the company reported Q4/20 and FY/20 financial results that included a 119% increase in fully year operating revenues.

Late yesterday evening, integrated gas-to-power company New Fortress Energy Inc. (NFE:NASDAQ) announced financial results for the fourth quarter and full year 2020 ended December 31, 2020. In addition, New Fortress Energy stated that its Board of Directors declared a Q1/21 common stock dividend of $0.10 per Class A common share to be payable on March 31, 2021 to shareholders of record on March 26, 2021.

The company reported that during FY/20 it entered into three separate purchase transactions totaling greater than $5.1 billion. These included the acquisition of Hygo Energy Transition Ltd., which operates Brazil’s largest thermal power plant as well as three other operational or in development terminals which are all expected to be fully operational within 12 months.

New Fortress also advised that it acquired Golar LNG Partners LP in a move that brings 13 vessels onboard that are expected to provide a source of stable contracted cash flows. The firm noted that once existing contractual obligations for these vessels have been met, the vessels will support its logistics backbone for terminal operations.

In addition, the company indicated that it acquired 288 MW of PPAs [power purchase agreements] and is actively developing a terminal at the port of Suape in Brazil that offers significant growth potential and access to the Trans Austria Gas (TAG) pipeline market.

The company noted also that its projects in Mexico and Nicaragua are expected to go online in Q2/21 and that it is also in the process of finalizing a framework agreement for a terminal in Southeast Asia that is expected to commence operations in H2/21.

The firm additionally stated that it was awarded a contract to supply approximately 250k g/p/d LNG to Comisión Federal de Electricidad (CFE) in Mexico that will replace their high cost diesel with first gas expected be delivered in Q2/21

The company highlighted that “it announced that it has made a final investment decision on an innovative “Fast LNG” 1.4 million tonnes per annum capacity modular liquefaction facility to provide a low-cost supply of liquefied natural gas for its growing customer base.”

The company’s CEO and Chairman Wes Edens commented, “Our innovative Fast LNG liquefiers should allow us to produce LNG between an expected $3-4 MMBtu for our growing portfolio of terminals around the world…This technology can be installed quickly and cheaply to access stranded, low-cost natural gas at a fixed price to meet the global demand for more affordable, reliable and cleaner energy. Alongside our terrific partners, we look forward to deploying one of the world’s lowest-cost LNG production facilities by 2022.”

The company reported the for Q4/20 in posted record quarterly revenue of $145.7 million, compared to $136.9 million in Q3/20. The firm added that in Q4/20 it registered a net loss of $0.5 million, versus a net loss of $36.7 million in Q3/20.

For FY/20 the company indicated that total revenue increased to$451.65 million, compared to $189.13 million in FY/19. For FY/20, New Fortress posted a net loss attributable to stockholders in the amount of $182.15 million or a net loss of $1.71 per basic and diluted share, compared to a net loss $33.81 million or a net loss of $1.62 per share in FY/19.

New Fortress Energy is based in New York and is a global energy infrastructure company dedicated to accelerating global transition to clean energy. The company builds, operates and funds fully integrated turnkey natural gas infrastructure and logistics energy solutions that facilitate economic growth and enhance environmental changes.

New Fortress Energy began the day with a market cap of around $7.4 billion with approximately 174.6 million shares outstanding and a short interest of about 1.3%. NFE shares opened nearly 8% higher today at $45.76 (+$3.28, +7.72%) over yesterday’s $42.48 closing price. The stock has traded today between $44.74 to $57.00 per share and at present is trading at $54.75 (+$12.27, +28.88%).

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