New Fortress Energy (NFE) has disclosed a new risk, in the Corporate Activity and Growth category.
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The recent sale of New Fortress Energy’s Jamaica Business to Excelerate Energy, Inc. for $1,055 million is anticipated to have a significant negative impact on the company’s consolidated financial results and condition. Despite receiving net proceeds of approximately $678.5 million, the loss of this revenue-generating asset may hinder the company’s ability to service and repay its debts. While New Fortress Energy plans to offset this loss through projects in Brazil, Nicaragua, and Puerto Rico, there is no certainty these ventures will commence on schedule or be profitable. Consequently, the company’s business, liquidity, and financial health could face substantial risks if these projects do not compensate for the revenue loss from the Jamaica Business sale.
Overall, Wall Street has a Moderate Sell consensus rating on NFE stock based on 1 Sell and 1 Hold.
To learn more about New Fortress Energy’s risk factors, click here.