NASDAQ$NFE

New Fortress Energy Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported financial results, achieving record quarterly revenue and declaring a fourth quarter dividend.

New Fortress Energy reported record quarterly revenue of nearly $137 million, a $40 million increase from Q2 2020. The company's net loss decreased by approximately $130 million from Q2 2020, driven by an approximately $28 million loss on extinguishment of debt and financing costs. The operating margin was over $51 million, representing over a 230% increase from Q2 2020.

  • Achieved record volumes in Q3 2020, averaging approximately 1.5 million gallons per day.
  • Construction activities are largely on time and on budget, with projects in Mexico and Nicaragua expected to be operational in the first quarter of 2021.
  • Announced two significant green hydrogen developments to advance transition to zero emissions.
  • Issued $1,000 million of 6.75% senior secured notes and declared a fourth quarter dividend of $0.10 per Class A common share.

Headline financials

Total Revenue

$137M

Previous: $49.7M+175.6%
EPS (adj)

-$0.08

Previous: -$0.30+73.3%
Capital Expenditures

-$116M

Previous: -$296M+60.8%
Free Cash Flow

-$152M

Previous: -$302M+49.7%
Net Income

-$36.4M

Previous: -$6.72M-440.8%
Operating Income

$11.1M

Previous: -$47.7M+123.2%
Gross Profit

$65.2M

Previous: $3.82M+1604.8%
Cash & Equivalents

$113M

Previous: $178M-36.7%
Total Assets

$1.4B

Previous: $1.15B+22.0%
Stock-Based Comp

$2.07M

No prior period

Revenue & EPS history

New Fortress Energy · Revenue · Quarterly

$137M

Q3 2020+175.6%vs Q3 2019
Beat estimate in 4 of 11 quarters(36%)
ActualEstimate

Revenue by segment

New Fortress Energy · $250M total across 2 segments · Q3 2023

  • Terminals & Infra
    $195M-22.6%
  • Ships
    $54.9M-37.5%

Forward guidance

The company expects volumes to increase in the coming months and is targeting over 2.5 million GPD of increased volumes through existing infrastructure.

Tailwinds

  • Targeting over 2.5 million GPD of increased volumes through existing infrastructure.
  • Projects in Mexico and Nicaragua should be Operational in the first quarter of 2021
  • Construction related activities remain largely on time and on budget
  • We see exciting growth opportunities through our two primary growth channels
  • Purchased ISO flex equipment, including a 266 foot OSV and are in the process of manufacturing our proprietary manifold

Headwinds

  • Risk that development, construction or commissioning schedules will take longer than expected.
  • Risk that volumes are able to sell are less than expected due to decreased customer demand or inability to supply.
  • Risk that expectations about the price at which LNG is purchased, the price at which LNG is sold, the cost at which LNG is produced, shipped and delivered, and the margin received for the LNG that is sold are not in line with expectations.
  • Risks that operating or other costs will increase and expected funding of projects may not be possible.
  • Risk that organic and inorganic growth opportunities do not materialize due to inability to reach commercial arrangements on terms that are acceptable or at all.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

-0.3%

Avg return

30 days after

52%

15 / 29 earnings

Positive

+25.3%

Q4 2020

Best reaction

-63.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%-8.4%-27.9%
Q4 2025+1.9%-9.0%-15.6%
Q3 2025-4.3%-17.1%+12.1%
Q1 2025-63.3%-54.9%-59.6%
Q4 2024-9.6%-1.3%-14.3%
Q3 2024-5.7%-2.1%+29.4%
Q2 2024-17.1%-18.0%-35.0%
Q1 2024+5.2%+3.7%-10.9%
Q4 2023+8.7%+5.7%-3.4%
Q3 2023+21.9%+22.7%+37.0%
Q2 2023+5.4%+2.5%+10.9%
Q1 2023+11.0%+9.2%+5.0%
Q4 2022-13.9%-6.7%-26.7%
Q3 2022-15.9%-13.8%-22.6%
Q2 2022-1.7%+5.4%+11.1%
Q1 2022+8.4%-2.9%+17.4%
Q4 2021+24.7%+34.1%+52.9%
Q3 2021-4.3%-5.5%-21.6%
Q2 2021+1.3%-0.9%-1.5%
Q1 2021-3.2%-8.5%-2.5%
Q4 2020+25.3%+20.4%+9.3%
Q3 2020-18.9%-18.3%+3.3%
Q2 2020+8.1%+15.0%+33.5%
Q1 2020+4.7%+8.5%+11.8%
Q4 2019+7.3%+6.5%-37.7%
Q3 2019-4.1%-6.8%-2.3%
Q2 2019+14.4%+27.7%+29.0%
Q1 2019-0.1%+14.8%-10.2%
Q4 2018-3.5%+18.6%+22.0%
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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