New Fortress Energy announces 2Q19 results

Highlights

• Commercial
  • Total committed volumes of 2.6 million gpd as of 2Q19, an increase from 1 million gpd in 2Q18.
  • Total in discussion volumes of 16 million gpd as of 2Q19, an increase from 9.1 million gpd in 2Q18.
• Development
  • NFE had 14 projects under development with total remaining project cost of approximately US$282 million, as of 2Q19.
  • The Old Harbour terminal in Jamaica commenced commercial operations in 2Q19.
  • The micro fuel handling facility in San Juan, Puerto Rico is expected to commence commercial operations in 4Q19.
• Financial
  • Fully underwritten commitment for US$180 million in financing to complete the construction of the Jamalco CHP Plant.
  • Cash on hand, including restricted cash, as of 30 June 2019 was US$258 million which, combined with expected cash flows from operations and expected new financing to complete the Jamalco CHP Plant, is expected to fully fund all downstream committed project costs.

Financial overview

• Revenue for 2Q19 increased versus 2Q18 due to revenue generated from the Old Harbour terminal, added volumes sold through our Montego Bay facility to the Bogue power plant, and new commercial and industrial customer contracts coming online.
• Cost of goods sold was higher due to LNG costs associated with a spot market cargo purchase that was fully consumed during 1Q and 2Q19. Due to these higher LNG costs, our weighted average cost of gas increased from US$0.69 per gallon in 2Q18 to US$0.83 per gallon in 2Q19.
• Operation and maintenance costs were higher during 2Q19, due to additional costs associated with operating the company’s charter vessels.
• SG&A for 2Q19 was higher than 2Q18 largely due to increased costs associated with headcount, professional fees, as well as non-cash compensation expense.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/13082019/new-fortress-energy-announces-2q19-results/