LNG exports in the U.S. rose in 2024, reaching near-record levels in December. But lower LNG export prices combined with higher costs squeezed margins for companies such as New Fortress.
LNG export prices averaged $6.26 per thousand cubic feet (Mcf) in January to November of 2024, down about 18% from 2023, data from Energy Information Administration showed.
At NFE's terminals and infrastructure unit, operating margin declined 44.8% to $206.1 million during the quarter.
Operating margin at the ships segment fell to $34.1 million during the October-December period, from $54.2 million a year earlier.
The company's total revenue fell to $679 million in the fourth quarter from $758.4 million a year earlier.
NFE reported net loss of $224 million, or $1.11 per share, in the three months ended December 31, compared with a net income of $214.9 million, or $1.06 per share, a year earlier.
However, the company posted an adjusted profit of 13 cents per share in the fourth quarter, compared with a mean expectation of five analysts for earnings of 4 cents per share according to data compiled by LSEG.
NFE also announced a one-year extension to its 80 trillion British thermal unit (TBtu) islandwide gas supply contract with the Puerto Rico Electric Power Authority.
In addition, the 10-year operation and maintenance agreement between Genera, which is a subsidiary of NFE, and PREPA will be modified to eliminate future incentive payments in exchange for a $110 million payment.
The company said its offshore natgas liquefaction facility Fast LNG (FLNG) 1 unit was placed into service in December 2024, and expects FLNG 2 to be completed in the first half of 2027.
