New Fortress Energy's Q4 2024: Key Contradictions on Puerto Rico Demand, FLNG Developments, and Brazilian Power Timeline

These are the key contradictions discussed in New Fortress Energy's latest 2024 Q4 earnings call, specifically including: Puerto Rico guidance and market demand expectations, FLNG asset development and regulatory approvals, FLNG asset impact on earnings, and the timeline for power generation from the Brazilian power auction:



Strong Financial Performance:
- NFE reported $313 million in EBITDA for Q4 2024, up 50% from the previous guidance.
- The significant increase in EBITDA was driven by the FLNG asset coming online and optimizing the company's portfolio.

Capital Markets and Debt Management:
- NFE raised $400 million in new equity in October 2024, including $50 million of personal equity, and extended debt maturities with the issuance of a $2.7 billion bond.
- These capital markets activities aimed to strengthen the balance sheet, increase liquidity, and set the stage for future growth and debt reduction.

Gas Supply and Market Strategy:
- NFE's FLNG asset coming online led to excess gas supply, creating an opportunity to hedge and sell some of the excess cargoes.
- The decision to derisk and sell a portion of the excess gas was based on geopolitical uncertainties and potential market fluctuations, ensuring cash generation and protecting future market upside.

Regional Expansion and Market Focus:
- NFE has operations in five countries and manages or owns nearly 10 gigawatts of power.
- The company is focusing on its core markets for long-term growth and exploring opportunities in Brazil, Puerto Rico, and other regions with high commercial activity.