NFE released its second-quarter results on Friday after it sought more time in August from the US SEC to file its second-quarter report due to ongoing negotiations related to additional credit support that is required to be delivered under one of its debt instruments.
The company’s net loss in the second quarter widened compared to a net loss of $86.9 million in the second quarter last year and $197.4 million in the first quarter of this year.
NFE reported significant non-cash impairments of assets and goodwill totaling $699 million, and a total cash balance of $821 million, of which $551 million is unrestricted as of June 30, 2025.
It also reported a gain on sale of its Jamaican operations of $473 million.
In May, US FSRU player Excelerate Energy completed its acquisition of NFE’s business in Jamaica for $1.055 billion.
Puerto Rico
The company believes there are a “number of substantial commercial opportunities” to improve its results of operations and liquidity position by the end of 2025.
These include the GSA with PREPA as the two firms continue talks.
“During these negotiations we are extending the current island-wide GSA on a weekly basis as we work towards a long-term agreement that is in the best interests of both parties and achieves our mutual goal of sustained, efficient, and economical power generation for the people of Puerto Rico,” NFE said.
In March 2024, NFE was awarded a gas sale agreement with PREPA to supply up to 80 TBtu annually to PREPA’s gas-fired power plants. The contract initially expired in March 2025.
NFE also said it continues to be in “active dialogue with FEMA and the US Army Corps of Engineers on our request for an equitable adjustment related to the temporary power solution in Puerto Rico and are increasingly confident the matter will be resolved by the end of this year.”
The company has begun the commissioning of its 624 MW CELBA plant, and it expects the power plant to be operational before the end of the year.
Shipping and Brazil
“We continue to optimize our shipping portfolio; we executed a 10-year charter for the Energos Eskimo with the Egyptian Natural Gas Holding Company (EGAS) in Q4 2024, and we have executed a 3-year charter for the Energos Freeze with Energia 2000 S.A. in Q2 2025. Furthermore, we executed a 5-year charter for the Energos Winter with EGAS in July,” NFE noted.
“We are encouraged by a recent announcement in Brazil of an intention to hold power auctions on March 13, 2026. We think the ultimate size of the auction could be larger than initially expected, potentially as large as 15 GW,” the company said.
NFE believes its “critical” infrastructure assets, including its terminal in Santa Catarina, positions the company “well to either develop our own power projects or provide reliable service to others.”
The company also said it continues to make “substantial” progress on its PortoCem power plant in Brazil that is over 70 percent complete.
NFE added that its FLNG 1 offshore Altamira, Mexico performed at or above nameplate capacity for all of the second quarter.
Strategic alternatives
NFE has initiated a process to evaluate its strategic alternatives to improve its capital structure.
It has retained Houlihan Lokey Capital as financial advisor and Skadden, Arps, Slate, Meagher & Flom as legal advisor to assist NFE in this evaluation.
“The company, along with its advisors, is considering all options available, including asset sales, capital raising, debt amendments and refinancing transactions, and other strategic transactions that seek to provide additional liquidity and relief from acceleration under its debt agreements,” it said.
As part of this process, NFE is engaging in discussions with “various existing stakeholders and potential investors.”
“There are inherent uncertainties as the outcome of these negotiations and potential transactions described above are outside management’s control, and therefore there are no assurances that management will be successful in these negotiations and that any of these potential transactions will occur,” NFE said.
“In addition, there can be no assurances that these transactions will sufficiently improve the Company’s liquidity or that the Company will otherwise realize the anticipated benefits,” the company added.
