In December, Egypt’s EGAS signed a deal with NFE to charter the 160,000-cbm Energos Eskimo. This charter deal is for ten years.
Most recently, NFE has signed a three-year deal to charter the 125,000-cbm FSRU Energos Freeze to Energia 2000 in the Dominican Republic.
Apollo’s Energos Infrastructure owns both of these FSRUs.
NFE and Apollo formed their $2 billion joint venture, Energos Infrastructure, in August 2022.
However, in February last year, NFE completed the sale of its 20 percent equity interest in Energos Infrastructure to funds managed by compatriot asset manager Apollo.
Two FSRU charter deals worth about $200 million
Disccusing the FSRU subcharters during NFE’s first-quarter earings call, NFE’s chairman and CEO, Wes Edens said, “we basically had a handful of FSRUs that were surplus to our needs in our portfolio that we basically took back and then re-let them at a higher rate to third-parties.”
Edens said that NFE estimates to earn about $143 million from the Energos Eskimo sub-charter, or some $15 million per year.
The company expects the Energos Freeze deal to bring $59 million or about $20 million per year.
Also, charter deals for two more FSRUs are expected to bring in about $110 million, boosting the total nominal value to $312 million over the lives of the contracts.
Wes said the charters range in periods from “anywhere from 3 to 10 years.”
“The present value at a 10 percent discount rate, just to give context to it, is $236 million. So these are assets we can either collect month by month over the next 3, 5, 10 years, or we can look to sell them and generate a one-time gain, something we’re evaluating,” he said.
Advanced talks
NFE’s finance chief, Chris Guinta, said later during the call that NFE is in “advanced discussions with counterparties on two additional FSRU opportunities, which contribute an incremental $100 million to the total value of the portfolio.”
“On an annual basis, these re-lets can increase our cash flow up to about $50 million in added Ebitda per year,” he said.
“Further, with the high demand for these contracts, we have the opportunity to novate or sell them to other companies, which would provide us with upfront payments that we think are around $200 million,” he said.
“And when that occurs, it would be included in Ebitda and of course, earnings,” he added.
Net loss
NFE reported a net loss of $197.4 million in the first quarter of 2025.
This compares to a profit of $56.7 million in the same quarter last year.
The company’s adjusted Ebitda of $82 million in the first quarter was lower compared to $340.1 million in the same quarter last year.
