New Fortress Energy (NASDAQ:NFE) shares sank 48% after the company revealed it is conducting a review of strategic alternatives aimed at strengthening its capital structure amid ongoing financial pressures.
The LNG infrastructure provider reported a second-quarter 2025 net loss of $557 million, up sharply from a $197.4 million loss in the prior quarter. The results were heavily affected by $699 million in non-cash impairments of assets and goodwill, partially offset by a $473 million gain from selling its Jamaican operations.
Adjusted EBITDA for Q2 tumbled to negative $3.7 million, a steep drop from positive $82.3 million in Q1 and $120.2 million in the same quarter last year. Revenue also declined sharply to $301.7 million, compared with $470.5 million in the previous quarter and $428 million a year earlier.
The company has engaged Houlihan Lokey Capital as its financial advisor and Skadden, Arps, Slate, Meagher & Flom as legal counsel to explore potential strategic options, which may include asset sales, capital raises, debt restructuring, refinancing, and other moves to improve liquidity and manage debt obligations.
Despite the financial strain, NFE highlighted several initiatives that could enhance operations and cash flow by year-end. These include negotiations for a long-term gas supply agreement with PREPA in Puerto Rico, the commissioning of its 624 MW CELBA facility, and optimization of its shipping portfolio through new charter contracts.
The company also noted progress on its PortoCem power plant in Brazil, which is over 70% complete and on schedule, while its FLNG 1 unit maintained performance at or above nameplate capacity during Q2, excluding scheduled maintenance periods.
New Fortress Energy stock price
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