On February 29, 2024, New Fortress Energy Inc (NFE, Financial) released its 8-K filing, announcing record financial results for the fourth quarter and the full year ended December 31, 2023. The company, an integrated gas-to-power business, has made significant strides in expanding its operations, particularly in Brazil and Puerto Rico, and has achieved a major shift in performance quality and results.
Financial and Operational Achievements
New Fortress Energy's financial achievements are particularly noteworthy in the context of the Utilities - Regulated industry. The company's ability to more than double its Funds from Operations per share is indicative of its successful expansion and operational efficiency. This metric is crucial as it reflects the company's ability to generate cash flow from its core business operations, which is a key indicator of financial health for investors.
The completion of the Barcarena and Santa Catarina terminals in Brazil and the installation of two FEMA Power plants in Puerto Rico are significant operational milestones. These developments are expected to contribute to revenue growth starting March 2024, demonstrating the company's strategic execution and potential for future expansion.
Financial Performance Analysis
Examining the Income Statement, New Fortress Energy reported a substantial increase in revenues, reaching $758.4 million in Q4 and $2.4 billion for the full year. The company's net income also saw a significant rise to $214.9 million in Q4, contributing to the full year's net income of $548.9 million.
The Balance Sheet reflects the company's solid financial position, with robust capitalization and liquidity to support ongoing and future projects. The Cash Flow Statement further underscores the company's strong operational cash flow, which has enabled it to double its Funds from Operations per share compared to the previous year.
Key financial metrics from the report include:
| Year Ended December 31, 2021 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Illustrative Goals Year Ended December 31, 2024 |
|---|---|---|---|
| EPS (diluted) $0.47 | $0.93 | $2.65 | ~$5.00 |
| Funds From Operations/share $0.97 | $1.61 | $3.56 | ~$6.00 |
| Gross Capex ~$600 million | ~$1,100 million | ~$2,800 million | ~$1,500 million |
| Net Capex ~$500 million | ~$800 million | ~$2,400 million | ~$250 million |
This year was a record by all of our reported metrics and importantly, during the second half of the year, there was no profit from Cargo Sales recorded. In other words, all of our performance was a result of downstream operating results. This is a major change in the Company’s performance, and a significant and meaningful improvement in both the quality and quantity of our results," said Wes Edens, NFE president and chief executive officer.
The company's strategic focus on downstream operations has paid off, with no profit from Cargo Sales recorded in the second half of the year, indicating a shift towards more stable and predictable revenue streams. The company's forward-looking statements suggest a continued focus on operational excellence and financial discipline, with expectations of further growth in earnings and a decrease in capital expenditures starting in 2024.
For additional insights and detailed financial data, investors and interested parties are encouraged to review the full 8-K filing and attend the earnings conference call scheduled for February 29, 2024, at 8:00 A.M. Eastern Time.
Explore the complete 8-K earnings release (here) from New Fortress Energy Inc for further details.
