New Fortress Energy Inc. reported its financial results for the second quarter of 2025, revealing significant financial challenges and strategic initiatives aimed at improving its liquidity and operational performance.
Financial Highlights
For the second quarter of 2025, New Fortress Energy reported:
- Adjusted EBITDA of $(4) million, indicating a negative performance compared to previous quarters.
- A net loss of $557 million, primarily due to significant non-cash impairments of assets and goodwill totaling $699 million.
- Earnings per share (EPS) of $(2.02) on a fully diluted basis.
- Total cash balance of $821 million, with $551 million being unrestricted as of June 30, 2025.
Business and Operational Highlights
Key operational developments include:
- Ongoing negotiations for a long-term gas sale agreement with PREPA in Puerto Rico, with weekly extensions of the current agreement.
- Active dialogue with FEMA and the US Army Corps of Engineers regarding a Request for an Equitable Adjustment related to the temporary power solution in Puerto Rico.
- Commissioning of the 624 MW CELBA plant, expected to be operational by the end of the year.
- Optimization of the shipping portfolio with new charters for the Energos Eskimo, Energos Freeze, and Energos Winter.
- Progress on the PortoCem power plant in Brazil, which is over 70% complete and on schedule.
- FLNG 1 unit performed at or above nameplate capacity for the entire second quarter, excluding scheduled maintenance periods.
Strategic Initiatives and Corporate Developments
New Fortress Energy has initiated a process to evaluate its strategic alternatives to improve its capital structure. The company has retained Houlihan Lokey Capital, Inc. as a financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as a legal advisor. The evaluation includes potential asset sales, capital raising, debt amendments, and refinancing transactions.
Management’s Perspective
Management expressed confidence in the company’s ability to improve its results of operations and liquidity position by the end of 2025. They highlighted substantial commercial opportunities and ongoing negotiations that could positively impact the company’s financial performance.
Future Outlook
New Fortress Energy anticipates an increase in core earnings as developments in Brazil, Nicaragua, and expansions in Puerto Rico come online. The company is also encouraged by the announcement of power auctions in Brazil, which could present significant opportunities for growth.