LNG export prices hit New Fortress Energy; company posts quarterly loss

US LNG firm New Fortress Energy posted a loss in the fourth quarter on Monday, hurt by weaker performance in its ships as well as terminals and infrastructure segments.

LNG exports in the US 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 per cent from 2023, data from Energy Information Administration showed.

At NFE's terminals and infrastructure unit, operating margin declined 44.8 per cent 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 four 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.

(Reporting by Vallari Srivastava and Pooja Menon in Bengaluru; Editing by Krishna Chandra Eluri)