New Fortress Energy reported a loss of US$234 million for 2024 and plans to sell assets in Jamaica and Brazil to reduce its US$9 billion debt. CEO Wes Edens highlighted the value of Jamaican operations, generating significant profit with low operational costs. The company seeks to raise US$2 billion through these sales for debt alleviation.
New Fortress Energy (NFE), a regional natural gas supplier, reported a loss of US$234 million for the fiscal year ending December 2024. In response, the company is preparing to sell select assets located in Jamaica, Brazil, and its shipping operations to mitigate its debt, which currently stands at US$9 billion. NFE’s Chairman and CEO, Wes Edens, indicated that these asset sales are anticipated to generate approximately US$2 billion to alleviate their substantial debt burden, which is currently four times the company’s capital of US$2 billion as of December.
Edens highlighted the focus on Jamaican assets during an investor call, stating that these operations yield an annual profit of US$125 million for the company. “Jamaica is the country where we went first. It’s our oldest and most developed market,” he noted, emphasizing that the operational environment is beneficial, with minimal ongoing capital costs needed once assets are established. The Jamaican energy market is perceived as a prime area for investment and operation.
New Fortress began its venture in Jamaica nearly nine years ago with liquefied natural gas (LNG) supplies, expanding subsequently into power generation. The company operates three primary facilities in Jamaica: Montego Bay, Old Harbour, and Hayes. The Montego Bay facility, active since 2016, processes 60,000 MMBtu of LNG each day and supplies natural gas to the Jamaica Public Service Company’s Bogue power plant.
The Old Harbour facility, operational since June 2019, has a processing capacity of 750,000 MMBtu daily, supplying the Old Harbour Power Plant under a 20-year agreement. Furthermore, Edens asserted that the local assets have consistently demonstrated stability, having “never suffered a dollar of credit loss” in their operation history. This stability underlines the inherent value of these assets in a favorable market.
New Fortress Energy is strategically selling off assets to address a significant debt issue, particularly accentuating the value of its Jamaican operations. The company aims to raise US$2 billion through these asset sales, which will assist in managing its US$9 billion debt load. With a focus on maintaining profitable operations in Jamaica, NFE is positioning itself for future financial stability following a reported substantial loss for the past fiscal year.
Original Source: jamaica-gleaner.com
