NEW YORK - New Fortress Energy Inc. (NASDAQ: NASDAQ:NFE) has announced the commencement of operations at its Barcarena LNG terminal in Pará, Brazil, with the Energos Celsius Floating Storage Regasification Unit (FSRU) now in place. The facility, which marks a significant step in the region's energy infrastructure development, was inaugurated with officials from the state government of Pará and Brazil's Ministry of Mines and Energy in attendance.
The Barcarena LNG terminal, uniquely positioned at the Amazon (NASDAQ:AMZN) River's mouth, is the sole provider of natural gas in Pará and the northern part of Brazil. It is expected to serve multiple industrial clients, including a 15-year agreement to supply Norsk Hydro (OTC:NHYDY)'s Alunorte refinery, the world's largest alumina refinery. This move is anticipated to cut the refinery's annual CO2 emissions by approximately 700,000 tonnes, aligning with Norsk Hydro's goal to reduce greenhouse gas emissions by 30% by 2030.
In addition to supporting local industry, the terminal aims to contribute to the reduction of emissions and pollution in the Amazon region by offering a cleaner energy alternative to oil-based fuels. NFE has begun delivering natural gas to the Alunorte refinery, with an annual supply of around 30 TBtus.
The Barcarena terminal is also set to supply natural gas to NFE's 630 MW power plant, which is under construction adjacent to the terminal and is expected to be operational in the third quarter of 2025. Furthermore, NFE is planning to expand its power complex by 1.6 GW under the New Power Project PPA, with a completion date no later than July 2026, pending regulatory approvals and the acquisition of the permitted site next to the Barcarena terminal.
Wes Edens, Chairman and CEO of New Fortress Energy, expressed pride in the Barcarena complex, highlighting its alignment with the company's integrated LNG-to-power business model and its role in fostering Brazil's decarbonization efforts and regional economic growth.
The information in this article is based on a press release.
InvestingPro Insights
As New Fortress Energy Inc. (NASDAQ: NFE) advances its operations in Brazil with the new Barcarena LNG terminal, it's important for investors to consider the company's financial health and market position. According to InvestingPro data, NFE has a market capitalization of approximately $6.49 billion USD, reflecting its significant size in the energy sector. The company's P/E ratio stands at 16.49, which may attract investors looking for reasonable valuation relative to earnings.
The financial data also shows that NFE has experienced a revenue decline of 10.9% over the last twelve months as of Q3 2023. Despite this, the company maintains a robust gross profit margin of 62.48%, indicating efficient control over its cost of goods sold relative to its sales. Additionally, the EBITDA growth of 14.4% over the same period suggests that the company has been improving its earnings before interest, taxes, depreciation, and amortization, which is a positive sign for operational efficiency.
From an InvestingPro Tips perspective, it's noted that NFE is trading at a high Price / Book multiple of 4.52, which investors should be mindful of, as it could indicate a premium valuation compared to the company's book value. Moreover, the company is also seen as quickly burning through cash, which is a critical factor for investors to watch, especially in capital-intensive industries like energy. For those interested in a deeper analysis, there are 11 additional tips available on InvestingPro, which can provide further insights into NFE's financial and market performance.
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