2025.10.03 – New Fortress Energy and FLNG-1 Altamira

Posted byLeonardo Tomás CardilloPosted inUncategorized

Summary

As of October 2, 2025, New Fortress Energy faces severe financial distress but has not declared bankruptcy. The company is burdened by multibillion-dollar debt, has been downgraded by Fitch Ratings, and was formally warned by Nasdaq for reporting delays. Its FLNG-1 Altamira project has produced cargoes and operated above nameplate capacity at times, but public filings do not confirm that it is currently generating sustained positive operating cash flow. Ongoing lawsuits accuse executives of misleading investors about Altamira’s readiness, and the contrast between executive salaries in the U.S. and median incomes in Mexico highlights the broader economic context.

Context and Scope

This account covers New Fortress Energy’s financial condition, credit downgrades, compliance matters, quarterly earnings, lawsuits over FLNG-1 in Altamira, workforce developments, and the uncertainty over whether FLNG-1 generates positive operating cash flow as of October 2, 2025. It also incorporates comparative salary and income data to contextualize the company’s challenges.

Exhaustive Narrative of Facts

1. Bankruptcy and Financial Condition

New Fortress Energy has not filed for bankruptcy by October 2, 2025. It carries about 9 billion US dollars in debt and has retained restructuring advisers, while creditors have hired their own. Fitch Ratings downgraded the company to CCC in May 2025, a grade reflecting vulnerability to adverse conditions and a high risk of default compared with higher-rated issuers.

2. Compliance and Nasdaq Notice

In May 2025, Nasdaq issued a notice citing the company’s failure to file reports on time. Such notices raise the risk of delisting and further erode investor confidence, exposing weaknesses in governance and compliance.

3. Earnings and Performance

For the second quarter of 2025, New Fortress Energy reported a net loss of about 556 million US dollars. Operational setbacks were tied to delays in FLNG-1, costing an estimated 150 million US dollars per quarter in lost margin. Although adjusted EBITDA was positive in some earlier quarters, recent filings show worsening results at the consolidated level.

4. Lawsuits over FLNG-1 Altamira

In September 2024, a class action was filed in the U.S. District Court for the Southern District of New York, alleging that between February 29 and August 8, 2024, the company misled investors about revenues and the FLNG-1 timeline. Named defendants are New Fortress Energy, Wesley Robert Edens, Christopher S. Guinta, and Andrew Dete. A motion to dismiss was filed in April 2025, but no ruling has yet been issued.

In July 2025, a derivative lawsuit was filed against company leaders, accusing them of concealing significant impediments and overstating construction progress at Altamira. Both cases remain unresolved.

5. Workforce Developments

New Fortress Energy has not publicly announced enterprise-wide layoffs. Reports have described isolated senior departures, including in Houston, and a small adjustment at its London office in April 2024, but no broad headcount reductions have been disclosed.

6. FLNG-1 Cash Flow Uncertainty

FLNG-1 has produced LNG and even loaded cargoes since August 2024. Company statements indicate that for parts of 2025 it operated at or above its 1.4 million tonnes per annum nameplate capacity. However, filings do not provide stand-alone cash flow figures for FLNG-1. Consolidated results show losses, meaning it is not publicly proven that the project is delivering sustained positive operating cash flow. While NFE has made forward-looking statements about FLNG-1 generating 500 million US dollars annually in free cash, those remain projections rather than confirmed outcomes.

7. Salary and Income Comparisons

Benchmark data suggest a U.S. Director of Marine Operations in offshore LNG can earn between 160,000 and 220,000 US dollars annually. At about 200,000 US dollars gross per year, the monthly net after taxes is roughly 11,000 US dollars. The median U.S. household income is about 6,400 US dollars per month, while in Mexico the average is about 1,000 US dollars per month. This illustrates stark differences in earning power due to productivity, specialization, and national economic scale.

Practical Takeaways

  • New Fortress Energy remains distressed but is not bankrupt.
  • Fitch’s downgrade, Nasdaq’s notice, and multibillion-dollar losses highlight the severity of its condition.
  • Lawsuits over FLNG-1 allege misrepresentation and remain unresolved.
  • Workforce reductions have not been formally announced.
  • FLNG-1 is operational and shipping cargoes but has not been shown to be cash-positive in filings.
  • U.S. executive salaries in offshore LNG far exceed average incomes in Mexico because of structural economic differences.

Sources

Published by Leonardo Tomás Cardillo

https://www.linkedin.com/in/leonardocardillo

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