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New Fortress Energy doubles revenue; shares to spike on NYSE

New York-based New Fortress Energy LLC (NFE) netted US$50 million in quarterly sales, the majority of which came from its contracts in Jamaica.

New Fortress Energy’s revenues were generated primarily in Jamaica.
(Photo: New Fortress Energy)

The figure marks an almost 100 per cent increase from its revenues over the corresponding period in 2018 when the company had sales of US$28.4 million.

Furthermore, US based financial analysts on MarketWatch.com have projected the current share price of US$15.39 to move within US$27 to US$30.

“We need to complete the construction and finalise the operational readiness of two power plants in Jamaica that constitute the bulk of the volumes that we expect to come on board during the next year.”

– New Fortress Energy chief executive officer, Wes Edens

Other analysts are more conservative in the growth of the share price. Stock-tracking website TheFly.com noted, “Citi analyst Ryan Levine raised his price target for New Fortress Energy (NFE) to US$22 from US$18 to reflect benefits from low gas prices as well as the company’s potential to renegotiate with Chesapeake (CHK). The analyst keeps a buy rating on New Fortress Energy.”

New Fortress Energy chief executive officer, Wes Edens, in a conference call to investors on November 11, 209, said “So we had a very good quarter in the third quarter of our financial year. Our focus as we continue to build and develop the business is to get our assets turned on and operating and continue to find new markets to explore. In both regards, we continue to have a very, very good quarter.”  

New Fortress Energy chief executive officer, Wes Edens (Photo: Bloomberg News)

Edens continued, “We need to complete the construction and finalise the operational readiness of two power plants in Jamaica that constitute the bulk of the volumes that we expect to come on board during the next year. In Puerto Rico, the terminal itself is very close to completion.” 

NFE operates across the Caribbean and Central America to supply energy to regional utilities companies.

New Fortress Energy hopes to increase production to two million gallons per day.
(Photo: lngnewsworld.com)

Production at New Fortress has increased from 300,000 gallons of gas per day to 1.2 million gallons per day since 2016. Edens said the future of the company is a two-plus million gallon a day mark.

New Fortress is the sole supplier of natural gas to Jamaica and completed a US$180 million bond issue in early September. Proceeds from the bond issue will be used to complete its liquefied natural gas facility at Jamalco in Clarendon. It is expected that the 150-megawatt plant will be ready to receive LNG deliveries by year end.