New Fortress Energy sets up hydrogen, new fuels unit. New Fortress Energy Announces First Quarter 2021 Results; Forms Joint Venture with Fortress Transportation and Infrastructure LLC Focused on Renewable and Clean Fuels; Declares Dividend of $0.10 per Class A Common Share
Business Highlights
- Closed previously announced acquisitions of Hygo Energy Transition Ltd. (“Hygo”) and Golar LNG Partners LP (“GMLP”) for $5.1bn enterprise value
- Development projects are advancing on budget and schedule(1)
- Our Mexico and Nicaragua terminals are expected to be operational(2) in Q2 2021
- Our first ISO Flex vessel has arrived in La Paz and two more expected in Nicaragua in Q2 2021
- We are FID(3) and currently developing new terminals at Santa Catarina, Barcarena, and Suape in Brazil
- We continue to make great progress on our Fast LNG asset which we expect will provide us with surety of stable supply at rates well below the current open market prices
- Actively engaging with gas suppliers around the globe to supply long-term, fixed-price feedstock
- Secured two world class jack up rigs from Maersk
- Progressed engineering and design, complete with full operational simulations and deployment scenarios
- Maintaining the development timeline of 16-20 months to full operations
- Launching Zero Parks, a Joint Venture with Fortress Transportation and Infrastructure
- NFE is forming a new joint venture called “Zero Parks” with Fortress Transportation and Infrastructure LLC (NYSE: FTAI), a business with deep investment experience in transportation and high-utility infrastructure assets in the United States
- Zero Parks pairs FTAI’s transportation experience and infrastructure with NFE’s focus on hydrogen and clean energy to commercialize the rapidly growing opportunity for renewable and low-carbon fuels
- Starting with near-term opportunities for renewable diesel and blue hydrogen, Zero Parks aims to reach FID(3) on its first two projects in 90-120 days
- Significant volume growth – over 5.1 million GPD Committed(4) with over 21.2 million GPD of Committed(4) and In Discussion Volumes(5)
- Completed the private offering of $1.5 billion of senior secured notes due 2026 (the “2026 Notes”)
- The 2026 Notes bear interest at 6.50% per annum and were issued at an issue price equal to 100% of principal
- Closed a $200 million senior secured Revolving Credit Facility (“Revolving Facility”) to provide additional liquidity
- Our Board of Directors approved a dividend of $0.10 per share, with a record date of June 1, 2021 and a payment date of June 11, 2021
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Financial Highlights
| For the Three Months Ended, | ||||
| December 31, | March 31, | |||
| (in millions, except Average Volumes) | 2020 | 2021 | ||
| Revenues | $145.7 | $145.7 | ||
| Net Loss | ($0.5) | ($39.5) | ||
| Operating Margin* | $60.9 | $32.8 | ||
| Average Volumes (k GPD) | 1,410 | 1,440 |
- Quarterly revenue of $145.7 million, remaining stable from Q4 2020
- Net loss was $39.5 million, as compared to the Q4 2020 net loss of $0.5 million, which was primarily a result of higher LNG cost in Q1 2021 vs. Q4 2020 as well as costs associated with Hygo and GMLP acquisitions
- Operating Margin*(4) decreased by $28.1 million in Q1 2021 vs Q4 2020, which is line with our expectations due to higher LNG cost
- Average daily volumes sold in Q1 2021 were approximately 1.4 million GPD
New Fortress Energy Announces First Quarter 2021 Results; Forms Joint Venture with Fortress Transportation and Infrastructure LLC Focused on Renewable and Clean Fuels; Declares Dividend of $0.10 per Class A Common Share, May 7, 2021
