Altamira Fast LNG delays hit New Fortress Energy in Q2

Delays commissioning its first Fast LNG (FLNG 1) facility off the Mexican coast at Altamira hit New Fortress Energy (NFE) in Q2 2024, with adjusted EBITDA falling sharply from the same period a year ago, to $120.2mn from $246.5mn.

The Q2 result, NFE said, was well short of its own expectations of $275mn for the quarter.

“This was largely the result of delays in placing our FLNG 1 project into service, which was originally expected to occur at the beginning of the second quarter,” NFE said. “As detailed in our earnings presentation, the cost of this delay is approximately $150mn per quarter in lost operating margin, which represents the vast majority of the adjusted EBITDA shortfall for the quarter.”

Q2 results don’t include some $107mn of contracted LNG sales during the quarter, which will be recognised in adjusted EBITDA and earnings in the second half this year.

NFE reported a net loss of $86.9mn in Q2 this year, down from net earnings of $120.3mn in Q2 2023.