New Fortress Energy is delaying its quarterly filing, but the company acknowledged a disappointing sales picture.
New Fortress Energy (NFE -10.88%) stock is getting hit with another round of big sell-offs Tuesday. The company’s share price was down 8.6% at 11:15 a.m. ET and had been down as much as 10.3% earlier in trading.
New Fortress submitted a filing with the Securities and Exchange Commission (SEC) stating that the filing of its quarterly 10-Q report will be delayed. While the quarterly report has been pushed further out, the company did say that revenue fell significantly in the period.
Image source: Getty Images.
New Fortress stock sinks on 10-Q delay
With its filing today, New Fortress said that it believed it was prudent to delay its 10-Q report due to the status of negotiations to secure additional sources of credit support for one of the company’s debt instruments. The filing said that developments on that front could affect its long-term debt and related items on its quarterly report. New Fortress also said that it needed more time to complete its unaudited results in the interim and have a public accounting firm complete a review of the interim report.
New Fortress Energy faces some big challenges
While it’s not clear when New Fortress’s quarterly report will be ready, the company did share that revenue from terminal operations in Q2 and across the first half of the year were down significantly compared to the respective prior-year periods. The energy specialist attributed the sales declines to the discontinuation of a power project in Puerto Rico, the sale of the company’s Jamaican business, and softer cargo sales. Operating expenses across the first half of the year were also up significantly as a result of goodwill and asset impairments.
In July, New Fortress had seemingly been on track to secure a 15-year, $20 billion liquefied natural gas contract with Puerto Rico that would have provided substantial cash flows and helped the company to better manage its debt situation. The deal wound up hitting regulatory roadblocks, and Puerto Rico’s negotiators ceased talks with the company after it refused to make concessions. Struggling with its debt load, New Fortress could really use a large new contract and source of capital.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Great Job newsfeedback@fool.com (Keith Noonan) & the Team @ The Motley Fool Source link for sharing this story.
