New Fortress Energy Reports Significant Revenue Decline and Operating Loss in Q1 2025

New Fortress Energy Inc. reported a significant decline in financial performance for the first quarter of 2025, with total revenues of $470.5 million, down from $690.3 million in the same period last year. The company experienced an operating loss of $18.5 million compared to an operating income of $184.5 million in the first quarter of 2024. The net loss attributable to common stockholders was $200.1 million, translating to a loss per share of $0.73, a stark contrast to the net income of $53.9 million, or $0.26 per share, reported in the prior year.

The decrease in revenue was primarily attributed to the termination of the grid stabilization project in Puerto Rico and a reduction in volumes delivered to downstream customers due to maintenance activities at key facilities. Additionally, the company recognized $182.7 million in revenue from cargo sales, a notable increase from zero in the first quarter of 2024, as it began utilizing its first floating liquefaction unit, which commenced operations in late 2024. However, the overall revenue decline was exacerbated by the absence of contract novation income that had been recognized in the previous quarter.

In terms of strategic developments, New Fortress Energy completed the sale of its Jamaica business on May 14, 2025, for approximately $1.06 billion, which is expected to enhance liquidity. The company received net proceeds of about $678.5 million from the sale, with an additional $98.6 million held in escrow. This divestiture is part of a broader strategy to optimize its asset portfolio and improve cash flow. The company is also focusing on expanding its modular liquefaction capabilities through its Fast LNG projects, which are designed to provide low-cost LNG to global markets.

Operationally, New Fortress Energy's total assets increased to $13.03 billion as of March 31, 2025, up from $12.87 billion at the end of 2024. The company reported a decrease in cash and cash equivalents to $447.9 million, down from $492.9 million, while restricted cash also fell to $379.5 million from $472.7 million. The company’s total debt rose to $9.19 billion, reflecting increased borrowing to fund ongoing projects and operational needs. The company is currently evaluating various strategies to enhance liquidity, including potential asset sales and capital raising initiatives.

Looking ahead, New Fortress Energy faces substantial challenges, including increased interest expenses and the need to manage its liquidity effectively. The company has expressed substantial doubt about its ability to continue as a going concern without successfully executing its strategic plans. Management is actively working to address these challenges while continuing to pursue growth opportunities in the LNG market, particularly in Latin America and the Caribbean.