New Fortress Energy Faces Financial Turmoil as Shares Plummet
New Fortress Energy's stock collapsed 45.7% this week after a disastrous Q2 earnings report revealed collapsing revenues and covenant violations. The LNG provider posted a $556 million net loss alongside a 30% revenue decline, triggering existential concerns about its debt obligations.
Friday's delayed filing—a hallmark of bad news—showed adjusted EBITDA swinging from $120.2 million profit to a $3.7 million loss. Lenders may now demand immediate repayment unless covenant waivers are granted, casting doubt on the company's liquidity.
While asset sales contributed to the downturn, the Core business deterioration suggests structural challenges. The market's brutal response reflects growing skepticism about energy transition plays facing financing headwinds.
