NASDAQ$NFE

New Fortress Energy Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

New Fortress Energy's financial performance reflected a transition towards contracted downstream assets and strategic advancements in key projects.

New Fortress Energy reported adjusted EBITDA of $208 million and net income of $62 million for the third quarter of 2023. The company is transitioning towards core infrastructure with nearly 100% of third quarter earnings from contracted downstream assets. NFE is expecting an increase in earnings and decrease in capex beginning in the fourth quarter of 2023 as they place approximately $3.0 billion of invested capital projects online and plans to deleverage by selling approximately $1 billion of non-core assets.

  • Adjusted EBITDA was $208 million.
  • Net income reached $62 million.
  • Adjusted EPS was $0.30 on a fully diluted basis.
  • The company transitioned earnings from predominantly open cargos to nearly 100% contracted downstream assets.

Headline financials

Total Revenue

$514M

Previous: $732M-29.7%
EPS (adj)

$0.30

Previous: $0.41-26.8%
Capital Expenditures

-$2.19B

Previous: -$787M-178.4%
Free Cash Flow

-$2.13B

Previous: -$725M-193.7%
Net Income

$61.2M

Previous: $61.8M-1.0%
Operating Income

$150M

Previous: $187M-19.9%
Gross Profit

$323M

Previous: $338M-4.6%
Cash & Equivalents

$171M

Previous: $364M-53.0%
Total Assets

$9.8B

Previous: $7.44B+31.7%
Stock-Based Comp

$228K

Previous: $13.4M-98.3%

Revenue & EPS history

New Fortress Energy · Revenue · Quarterly

$514M

Q3 2023-29.7%vs Q3 2022
Beat estimate in 5 of 14 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

New Fortress Energy anticipates increased earnings and decreased capital expenditures as it brings approximately $3.0 billion of invested capital projects online. The company also aims to deleverage through approximately $1 billion in non-core asset sales and reiterated its Illustrative Adjusted EBITDA Goals for 2023 and 2024.

Tailwinds

  • Increase in earnings is expected beginning in the fourth quarter of 2023.
  • Decrease in capital expenditures is expected beginning in the fourth quarter of 2023.
  • Approximately $3.0 billion of invested capital projects are expected to be placed online.
  • Approximately $1 billion of non-core asset sales are planned to support deleveraging.
  • Illustrative Adjusted EBITDA Goals for 2023 and 2024 are reiterated at $1.6 billion and $2.4 billion, respectively.

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 2023

Historical avgQ3 2023

-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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