Press release
New Fortress Energy Announces Second Quarter 2020 Results
NEW YORK--(BUSINESS WIRE)-- New Fortress Energy LLC (NASDAQ: NFE) (“NFE” or the “Company”) today reported its financial results for the second quarter ending
About this update from New Fortress Energy Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nNew Fortress Energy LLC (NASDAQ: NFE) (“NFE” or the “Company”) today reported its financial results for the second quarter ending June 30, 2020.\n\n\nBusiness Highlights\n\n\n\nOperating Margin* of $15.2 million, increasing $17.4 million since the first quarter\n\n\nRecord volumes were achieved in the second quarter\n\n\nAverage daily volumes sold in Q2 2020 were approximately 978,000 gallons per day which is a 223,000 increase from Q1 2020\n\n\nGallons per day volumes are expected to be between 1,700,000 and 2,000,000 on average for the remainder of 2020\n\n\n\n\nCompleted termination of 8 remaining 2020 cargos in exchange for a payment of $105 million; also executed mitigation sale of one cargo\n\n\nAllows us to take advantage of historically low prices of LNG on the open market\n\n\nCancellation resulted in one-time charge of $105 million and was primary driver of $166.5 million net loss in the second quarter\n\n\n\n\nSimplifying our corporate structure\n\n\nConverted all Class B shares to Class A shares to enhance our liquidity, improve our credit profile and lower our cost of capital\n\n\nConverting our public entity from an LLC to a C Corporation effective August 7, 2020, will make NFE shares eligible to be included in benchmark stock indices currently utilized by more than $8 trillion of fund industry assets\n\n\n\n\nNew business pipeline is very robust\n\n\nWe continue to focus on 10 key markets which have Committed(1) and In Discussion Volumes(2) of over 21 million GPD(3)\n\n\nOur goal is that each new terminal in our target markets produce between $100mm to $200mm in Illustrative Annualized Operating Margin Goal(4)\n\n\n\n\nProgressing Financing and Capital Plan\n\n\nWe received a B+/B1 corporate family rating from Moodys and S&P which we plan to use as basis for refinancing with targeted savings of $25mm per year\n\n\nOnce we have completed our refinancing, our goal is to begin returning capital to shareholders by considering a quarterly dividend, subject to approval by our Board of Directors\n\n\n\n\nCOVID-19 during Q2 2020 did not materially impact financial results\n\n\nWhile the coronavirus has affected our customers and electricity demand in the markets we serve, power and gas remain an essential good\n\n\nCustomer receivables remain current and the business has ample liquidity to su...