New Fortress Energy (NFE) has disclosed a new risk, in the Corporate Activity and Growth category.
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The sale of New Fortress Energy’s Jamaica Business to Excelerate Energy, Inc. for $1,055 million poses a significant risk to the company’s financial health. Despite receiving net proceeds of approximately $678.5 million, the loss of this revenue-generating asset is expected to negatively impact their consolidated results and financial condition. The company aims to offset this loss by developing projects in Brazil, Nicaragua, and Puerto Rico, but there is uncertainty regarding the profitability and timely commencement of these operations. If these projects fail to compensate for the lost revenue, New Fortress Energy’s business, liquidity, and financial stability could be adversely affected.
The average NFE stock price target is $5.00, implying 104.08% upside potential.
To learn more about New Fortress Energy’s risk factors, click here.