New Fortress Energy Completes Sale of Jamaican Assets to Excelerate Energy, Reports Q1 2025 Financial Results
New Fortress Energy Inc. (Nasdaq: NFE) has announced the successful completion of a major transaction involving the sale of its Jamaican assets and operations to Excelerate Energy, Inc. (NYSE: EE) for a total purchase price of $1.055 billion. This strategic divestiture, first announced on March 27, 2025, marks an important step in New Fortress Energy’s ongoing efforts to streamline its business operations and strengthen its financial position by reducing corporate debt. The proceeds from this transaction will be primarily allocated to debt reduction and general corporate purposes, providing the company with greater financial flexibility as it pursues growth opportunities in other markets.
Details of the Asset Sale
The transaction transferred full ownership of several key energy infrastructure assets in Jamaica to Excelerate Energy. These include:
- The LNG import terminal located in Montego Bay,
- The offshore Floating Storage and Regasification Unit (FSRU) terminal situated in Old Harbour,
- A 150 megawatt (MW) Combined Heat and Power Plant located in Clarendon,
- Along with all associated infrastructure linked to these facilities.
This sale reflects New Fortress Energy’s strategic decision to focus on markets and assets that align more closely with its long-term growth plans while allowing Excelerate Energy to expand its footprint in the Caribbean energy sector.
Leadership Comments
Wes Edens, Chairman and CEO of New Fortress Energy, emphasized the significance of this milestone: “The closing of the sale of our Jamaican assets to Excelerate is a significant milestone for the Company as we streamline our operations and pay down corporate debt through asset sales. NFE has made a positive impact on Jamaica’s energy transition, and we are proud of the contributions our world-class employees and assets have made in improving energy costs and reliability on the island.”
He added, “We are confident that Excelerate will continue NFE’s vision of providing reliable and cost-effective energy to Jamaica and will drive substantial progress toward improving Jamaica’s energy future.” This sentiment reflects a commitment to ensuring continuity and stability in Jamaica’s energy supply even after the transfer of ownership.
First Quarter 2025 Financial Results
In conjunction with the announcement of the asset sale completion, New Fortress Energy also released its financial results for the first quarter ending March 31, 2025. The quarter’s results paint a picture of a company undergoing a strategic transformation, focused on operational efficiency and financial discipline.
- Adjusted EBITDA: $82 million
- Net Loss: $197 million
- Earnings Per Share (EPS): $(0.73) on a fully diluted basis
- Total Cash Balance: $827 million (with $448 million unrestricted)
The adjusted EBITDA figure of $82 million reflects core earnings generated from terminal and vessel operations, excluding one-time gains that had influenced previous periods’ financial results. Notably, the company pointed out that revenue from terminal operations has remained relatively stable since the termination of its temporary power contract in early 2024.
Impact of Previous Contracts
New Fortress Energy had previously operated emergency power plants under a temporary power contract which was terminated in the first quarter of 2024. The company sold these emergency power plants to the Puerto Rico Electric Power Authority in March 2024, which led to a cessation of revenue recognition from that project. New Fortress is currently pursuing a request for equitable adjustment related to the early termination, signaling ongoing efforts to mitigate financial impacts from that contract’s conclusion.
One-Time Events and Future Earnings Outlook
The company highlighted several notable one-time events expected to contribute positively to earnings throughout 2025. These include:
- Claims related to the Federal Emergency Management Agency (FEMA),
- Sub-charters of Floating Storage and Regasification Units (FSRUs),
- Incentive payments from partners such as Genera.
Looking ahead, New Fortress Energy anticipates that its core earnings will increase as several development projects come online, particularly in Brazil, Nicaragua, and expansions in Puerto Rico.
Progress in Brazil and Other Development Projects
In Brazil, New Fortress Energy continues to make substantial progress on two major power plant developments:
- The 624 MW CELBA power plant is approximately 95% complete,
- The nearby PortoCem power plant is over 50% complete.
Both projects remain on schedule and within budget, with expectations to begin generating earnings from the CELBA plant as early as the third quarter of 2025. These projects are fully funded through asset-level debt financing already secured by the company, reflecting strong financial backing for the company’s expansion efforts.
Additionally, New Fortress Energy’s Fast LNG liquefaction asset has been fully commissioned, and the company is actively working on optimization projects aimed at increasing available liquefaction capacity. This will support expanded LNG production capabilities, a key growth area for the company.
Use of Sale Proceeds and Debt Reduction Strategy
Following the closing of the Jamaican asset sale, New Fortress Energy announced a clear plan for the use of proceeds to strengthen its balance sheet. Specifically, the company intends to:
- Pay down $270 million of its Revolving Credit Facility,
- Reduce $55 million of its Term Loan A facility,
- Retain the remaining proceeds as unrestricted cash on the balance sheet.
This focused approach to debt reduction underscores the company’s commitment to enhancing financial flexibility and reducing interest expenses, positioning New Fortress Energy to pursue further growth initiatives with a stronger balance sheet.
Future Financial Strategy and Balance Sheet Simplification
Looking ahead, New Fortress Energy plans to simplify its capital structure by exploring asset-based financing options. These financings would likely follow structures similar to those used for other liquefier assets, leveraging the company’s portfolio of LNG terminals, long-term LNG supply agreements, and downstream demand contracts. This strategy aims to improve financing efficiency and reduce overall cost of capital.
Summary of Financial Highlights (Q1 2025 vs. Prior Periods)
| Metric | Q1 2024 | Q4 2024 | Q1 2025 |
|---|---|---|---|
| Revenues | $690.3M | $679.0M | $470.5M |
| Net Income (Loss) | $56.7M | $(223.5M) | $(197.4M) |
| Diluted EPS | $0.26 | $(1.11) | $(0.73) |
| Terminals & Infrastructure Margin | $350.1M | $206.1M | $74.6M |
| Ships Segment Operating Margin | $34.2M | $34.1M | $31.4M |
| Total Segment Operating Margin | $384.3M | $240.2M | $106.0M |
| Adjusted EBITDA | $340.1M | $313.5M | $82.3M |
The decline in revenue and margins compared to prior quarters primarily reflects the impact of the sale of the Jamaican assets and the conclusion of certain power contracts, as well as ongoing market dynamics.
