3 months ago
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New Fortress Energy, NFE, booked a gain on the sale of its Jamaica operations, but reported an overall loss of US$200 million in the March first quarter.
Its losses were nearly four times worse that the comparative quarter for 2024 when it bled US$57 million.
CEO Wes Edens however reassured markets that full-year core earnings remain on track, projecting the company will still generate over US$1.25 billion to US$1.5 billion in adjusted core earnings or EBITDA for 2025.
New Fortress has natural gas operations around the hemisphere but Jamaica was the launch pad for the New York-based business. It has sold its Jamaican assets for $1.055 billion sale of its Jamaica operations, which delivered US$800 million in net proceeds and a US$430 million gain for New Fortress.
Edens called the deal a “meaningful deleveraging event”, with proceeds helping repay debt and extend maturities. The bulk of the sale will go towards reducing NFE’s total debt from some US$9 billion or more than four times its US$2 billion in capital as at December.
Excelerate Energy Inc acquired full ownership of New Fortress’ liquefied natural gas import terminal in Montego Bay, offshore floating storage and regasification terminal in Old Harbour, and 150MW Combined Heat and Power Plant in Clarendon, along with the associated infrastructure.
“NFE has made a positive impact on Jamaica’s energy transition, and we are proud of the contributions our world class employees and assets have made in improving energy costs and reliability on the island. We are confident that Excelerate Energy will continue NFE’s vision of providing reliable and cost-effective energy to Jamaica and continue to drive substantial progress towards improving Jamaica’s energy future,” said Edens.
While New Fortress’ underlying business performed steadily, the first quarter loss stemmed from a lack of one-time gains that previously boosted results.
“Our forecast for core earnings is very much in line with the first half, then accelerating in the second half as we bring assets online, particularly in Brazil,” Edens said. However, delayed items – including a US$110 million Puerto Rico incentive payment – weighed on short-term results.
Edens emphasised New Fortress’s shift toward predictable, long-duration revenue streams, citing US$500 million in annual margins from contracted assets. “Twenty years of repeatable cash flows is an incredibly powerful combination,” Edens said, highlighting opportunities to refinance debt against these stable earnings.
With liquidity now above US$1.1 billion, New Fortress plans to prioritise growth in Brazil – where two power plants near completion –and Puerto Rico, where ageing energy infrastructure presents opportunities. The company remains confident in its full-year targets, but markets await clearer signs of earnings recovery.
English (US) ·