New Fortress Energy Inc. (NFE) said it continues to negotiate with authorities for a long-term agreement to continue supplying Puerto Rico with natural gas.
“During these negotiations we are extending the current island-wide GSA [gas sale agreement] 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 its quarterly report.
In March the New York City-based company said it had amended the extension of its contract with the Puerto Rico Electric Power Authority (PREPA), totaling 80 billion British thermal units, to a term of 100 days from the previous one year. The shortened extension gives time for a request for proposal for a new gas contract with the lowest cost, NFE said then.
“We continue to be in active dialogue with FEMA and the U.S. 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 quarterly report added.
NFE sold its temporary power project to PREPA last year.
Last month the United States Department of Energy extended emergency orders that allowed Puerto Rico to maintain enough power capacity and secure transmission lines. The orders have been extended by three months to November.
“Decades of deferred maintenance, insufficient investment, the bankruptcy of the system owner and devastating hurricanes and earthquakes have significantly deteriorated the Puerto Rican electric grid”, DOE said in a statement. “As a result, full recovery will take years, but critical work is underway to improve grid reliability and resilience”.
Divestment Plans
NFE said it is studying asset sales and other options to improve its capital structure, as net losses deepened to $556.8 million, or $2.02 diluted per share, from $197.4 million for the prior three-month period and $86.9 million from 2Q 2024.
Revenue fell to $301.7 million for 2Q 2025 from $470.5 million for 1Q 2025 and $428 million for 2Q 2024.
Adjusted EBITDA declined from $82.3 million for 1Q 2025 and $120.2 million for 2Q 2024 to negative $3.7 million for 2Q 2025.
NFE booked a goodwill impairment of $582.17 million and an asset impairment of $117.31 million for 2Q 2025.
Current assets stood at $1.48 billion including $551.11 million in cash and cash equivalents and $270.3 million in restricted cash.
Current liabilities totaled $2.2 billion including a current portion of long-term debt and short-term borrowings of $1.18 billion.
“NFE has initiated a process to evaluate its strategic alternatives to improve its capital structure… 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”, the company said. “As part of this process, NFE is engaging in discussions with various existing stakeholders and potential investors”.
To contact the author, email jov.onsat@rigzone.com
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