Stabilis Solutions' Q4 2024: Unpacking Contradictions in FID Timing, Liquefaction Expansion, and Data Center Strategy

These are the key contradictions discussed in Stabilis Solutions' latest 2024Q4 earnings call, specifically including: FID Timing and Conditions, Liquefaction Capacity Expansion and Marine Bunkering, and Data Center Opportunities:



Revenue and Market Shifts:
- Stabilis Solutions reported a 4% decrease in Q4 revenue compared to the same quarter last year, with 49% of revenues derived from aerospace and marine customers.
- This shift was due to a decline in oil and gas customer revenues and lower overall natural gas prices, partially offset by significant growth in aerospace and marine bunkering revenues.

Adjusted EBITDA and Profitability:
- Stabilis achieved a record adjust EBITDA of $4 million in Q4, an increase of $1.1 million compared to the prior year period, resulting in a record adjusted EBITDA margin of 23.2%.
- The improvement in profitability was driven by operational efficiency gains and increased revenue from target growth markets.

Capital Expenditures and Infrastructure Investment:
- Stabilis spent $7 million out of $9.2 million in full year capital expenditures on growth investments, with a focus on expanding infrastructure along the U.S. Gulf Coast.
- The allocations were made to support future growth in demand for small-scale LNG, specifically for marine bunkering and aerospace applications.

Liquefaction Capacity and Future Growth:
- Stabilis relocated a liquefaction train to the George West facility in 2023, expanding storage capacity to support marine bunkering.
- The relocation is part of the company's strategy to increase capacity for future growth in marine bunkering and aerospace markets, with additional investments pending final investment decisions.