New Fortress Energy aims to reduce its $9 billion debt through asset sales in Jamaica and Brazil, targeting $2 billion in funding. Their Jamaican operations yield significant annual profits and have remained credit loss-free, highlighting their market strength. NFE closed the year with $966 million in cash after early debt repayments.
New Fortress Energy (NFE) is addressing its significant debt, reported at $9 billion as of December 2024, by selling assets primarily in Jamaica, Brazil, and related shipping charters. The company anticipates raising around $2 billion from these asset sales, as stated by Chairman and CEO Wes Edens during an investor call. NFE aimed to keep its debt manageable, which is currently four times its $2 billion capital.
Jamaica represents a crucial market for NFE, contributing approximately $125 million in operational profit annually. Edens emphasized that their Jamaican assets, which have consistently been profitable with no credit losses, include facilities in Montego Bay, Old Harbour, and Hayes. The strategic divestment plan, initially announced last year, gained momentum following a recent asset sale in Miami.
NFE’s Montego Bay facility, operational since 2016, can process up to 60,000 MMBtu of liquefied natural gas (LNG) daily, supplying significant amounts under a long-term contract to Jamaica Public Service Company. The Old Harbour facility, established in June 2019, processes 750,000 MMBtu daily and supports both electricity generation and industrial demands in the region.
The company has experienced financial growth but faced non-cash losses associated with early debt repayments. NFE ended the year with $966 million in cash, showing a marked increase from $311 million the previous year, signaling improved liquidity as they work towards reducing their debt burden.
New Fortress Energy is strategically reducing its $9 billion debt by selling key assets primarily in Jamaica, targeting around $2 billion from these sales. The company’s Jamaican operations have been historically profitable and represent substantial value, reflecting a strong market presence. As NFE continues its efforts to strengthen its financial standing, it demonstrates a proactive approach to debt management while maintaining significant operational capacity in Jamaica.
Original Source: jamaica-gleaner.com
