Nov 21 (Reuters) - New Fortress Energy NFE.O posted third-quarter loss on Friday, hurt by soaring interest costs as the U.S. LNG firm struggled with heavy debt, negative cash flow and project delays.
Shares of the New York-based company were down more than 7% premarket following the results.
New Fortress has been grappling with a severe liquidity crunch, as mounting debt and missed interest payments overshadowed the progress on its new projects.
The company, which has repeatedly delayed its quarterly filings this year, secured more time in October to release its third-quarter results as it negotiated a debt restructuring ahead of an upcoming interest payment.
Its financial troubles largely stem from its failure to lock in long-term LNG supply deals for its Latin American power assets, a task complicated by its non-investment-grade credit rating, leaving the company reliant on higher-priced spot gas.
The company said it amended its credit agreements to buy time amid a cash crunch, extending the maturity of a key credit line to March 2026.
It also paused some debt and liquidity requirements and tightened rules on dividends and debt payments, including a missed November 17 interest installment.
New Fortress said on Tuesday it had signed a forbearance agreement, giving it until December 15 to make the overdue payment.
The company said in its filing that its accounts were prepared on a "going concern" basis, but management warned there was "substantial doubt" the company can continue operating without new financing or a broader restructuring.
Quarterly interest expenses tripled to $210.6 million from $71.1 million a year earlier.
The company reported net loss of $293.4 million, or $1.07 per share, in the three months ended on September 30, compared with profit of $11.3 million, or 3 cents, a year earlier.
(Reporting by Sumit Saha in Bengaluru; Editing by Shreya Biswas)
((Sumit.Saha@thomsonreuters.com;))
Comments