New Fortress Energy Acquires 1.6 GW, 15-Year Contracted Power Asset in Brazil
December 28, 2023
☀️Trending News
New Fortress Energy ($NASDAQ:NFE) (NFE) has recently announced the acquisition of a 1.6 GW, 15-year contracted power asset in Brazil. This acquisition is the latest indication of the company’s commitment to powering the world with clean energy solutions. NFE is a major international energy infrastructure company that is focused on natural gas, liquefied natural gas (LNG), renewable power, and other clean energy technologies. The company has a worldwide presence, owning and operating energy infrastructure assets in North America, South America, Europe, and Asia. This asset is expected to supply renewable energy to residential and industrial customers in Brazil and will be a long-term source of revenue for the company.
The acquisition also highlights NFE’s commitment to meeting the growing global demand for energy while promoting sustainability and reducing environmental impact. This move is part of NFE’s strategy to expand its international operations and create a more diversified portfolio of energy resources. Overall, NFE’s acquisition of a 1.6 GW, 15-year contracted power asset in Brazil is a major step forward in the company’s mission to provide reliable and affordable clean energy solutions to customers around the world. The asset is expected to be an important source of revenue for NFE, and the company is well-positioned to continue its successful expansion into new markets in the near future.
Share Price
The stock opened at $38.9 and closed at $38.6, down by 1.1% from last closing price of 39.0. This acquisition is an important milestone for NEW FORTRESS ENERGY and it will prove to be a profitable venture for them in the long run. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for NFE. More…
| Total Revenues | Net Income | Net Margin |
| 2.2k | 394.8 | 18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for NFE. More…
| Operations | Investing | Financing |
| 801.19 | -1.95k | 996.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for NFE. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.8k | 8.22k | 7 |
Key Ratios Snapshot
Some of the financial key ratios for NFE are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 80.3% | – | 33.6% |
| FCF Margin | ROE | ROA |
| -80.7% | 32.5% | 4.7% |
Analysis
GoodWhale has conducted an in-depth analysis of NEW FORTRESS ENERGY’s wellbeing. According to Star Chart, NEW FORTRESS ENERGY is strong in growth, medium in dividend, profitability and weak in asset. This makes NEW FORTRESS ENERGY a ‘cheetah’ type of company – those who achieve high revenue or earnings growth but are considered less stable due to lower profitability. Investors who may be interested in such a company are those who seek higher returns with the understanding of the associated risks. However, NEW FORTRESS ENERGY has a low health score of 2/10, considering its cashflows and debt, which is less likely to safely ride out any crisis without the risk of bankruptcy. Therefore, investors may need to demonstrate a greater risk appetite for this company. More…
Peers
Its competitors are Osaka Gas Co Ltd, Atmos Energy Corp, and Bestsun Energy Co Ltd.
– Osaka Gas Co Ltd ($TSE:9532)
Osaka Gas Co Ltd is a Japanese company that provides natural gas and related services. The company has a market cap of 904.03B as of 2022 and a Return on Equity of 4.85%. The company is involved in the exploration, production, and distribution of natural gas. It also owns and operates a gas pipeline network. The company serves residential, commercial, and industrial customers in Japan.
– Atmos Energy Corp ($NYSE:ATO)
Atmos Energy Corporation is a publicly traded natural gas company headquartered in Dallas, Texas, and is the largest natural-gas-only distributor in the United States, serving over three million customers in eight states. The company supplies gas to residential, commercial and industrial customers through its utilities. Atmos Energy’s primary business is the regulated natural gas distribution business, which it conducts through its subsidiaries in eight states.
– Bestsun Energy Co Ltd ($SHSE:600681)
Bestsun Energy Co Ltd is a solar energy company with a market cap of 5.94B as of 2022. The company has a Return on Equity of 11.71%. The company specializes in the design, manufacture, and sale of solar photovoltaic products.
Summary
New Fortress Energy (NFE) has recently announced the acquisition of a 1.6GW power asset in Brazil, with a 15-year contracted power agreement. This move by NFE reinforces the company’s strategy of expanding its global footprint and diversifying its energy portfolio. With the competitive advantage of having long-term contracts secured in the Brazilian market, NFE will benefit from stable cash flows and positive returns on investments.
Additionally, NFE’s clean energy solutions are well-positioned to meet the growing demand for renewable energy in Brazil, which may bring further financial rewards due to the growing preference for green energy sources. In conclusion, NFE’s acquisition of the 1.6GW power asset in Brazil is a prudent investment move and has the potential to generate significant returns for investors over the life of the contract.
Related Posts
Recent Posts
