New Fortress Energy posts jump in revenues from growing LNG import-export portfolio

Tuesday, 07 March 2023
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New Fortress Energy Inc., the US developer of floating LNG production and import terminal projects, reported soaring annual revenues and net profits as its array of projects advanced.

The total annual revenues of NFE jumped almost 80 percent to $2.36 billion, up from $1.32Bln in 2021.

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The revenue break-down included $1.97Bln in operating revenues, $357.15 million in vessel charter revenues and $32.46M in other income.

The company reported annual net profits of $185M compared with $93M in 2021.

NFE said fourth-quarter and annual adjusted gross earnings came to $239M and $1.1Bln respectively.

“Our business remains simple and clear. We seek to match gas demand to gas supply, providing an end-to-end, fully integrated solution to our customers across the globe,” said NFE.

“While we have historically purchased (and continue to purchase) LNG supply from third parties, we are progressing our Fast LNG (FLNG) initiative to supply our terminals and other customers,” it added.

“We believe these developments will allow us to control our own LNG supply and complete the value chain enabling full vertical integration of our business,” stated NFE.

Developments after the fourth quarter included the sale of the NFE ownership stake in the “Hilli Episeyo” FLNG vessel deployed off Cameroon in West Africa to Golar LNG in exchange for the return of 4.1 million NFE shares, $100M in cash and the extinguishment of $323M in Hilli-related debt.

NFE’s interest in the “Hilli Episeyo” FLNG vessel come from its acquisition of the US affiliate of the Golar LNG company, Golar LNG Partners.

The company also completed the Barcarena import terminal in Brazil and expects to deliver first gas to the industrial customer, Norsk Hydro, later in 2023.

Also in Brazil, NFE closed the sale of CELSE, the owner of the Sergipe Power Plant and facility in northeast Brazil for pre-tax net proceeds to NFE of around $550M and helping to fund the fast LNG program.

“Construction of our FLNG units is progressing rapidly with the first FLNG unit expected to achieve mechanical completion in the Spring of 2023 and commence operations by mid-2023, explained NFE.

“As we add liquefaction capacity and corresponding LNG supply to our portfolio, we intend to sign long-term customer offtake agreements that generate strong operating margins and sustainable cash flows,” stated the New York-based firm.

NFE also closed a $2Bln transaction to form a joint venture called Energos Infrastructure with US equity fund Apollo asset Management in which NFE holds long-term charters for 10 LNG vessels.

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