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New Fortress Energy makes more Jamaica and Puerto Rico headway

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New Fortress Energy, the owner of LNG facilities in Florida and in Jamaica and projects in Puerto Rico and the US northeast, posted a third-quarter rise in revenues while its net losses widened to $54.4 million amid continuing start-up costs and other venture expenses.

New Fortress said the quarterly loss was bigger than the $13.7M registered in the year-ago quarter while revenues came in at $49.7M compared with $28.4M in the same three months of 2018.

The New Fortress company is led by Wes Edens, co-founder of the private equity group Fortress Investment.

New Fortress made its debut on the Nasdaq global exchange in January 2019 after an initial public offering. Its main corporate focus now is introducing LNG to markets that lack access to the fuel.

“Revenue increased from the Old Harbour terminal and new commercial and industrial customer contracts coming online,” said New Fortress.

The increase was also due to $10M of construction revenue recognized for one of its customers, the Jamalco Alumina plant for projects in Puerto Rico.

“Cost of goods sold was higher due to LNG costs as our weighted average cost of gas increased from $0.57 per gallon ($6.92 per million British thermal units) in the third quarter of 2018 to $0.66 per gallon ($8.02 per MMBtu) in Q3 2019,” said New Fortress.

“The increase in cost of goods sold was also due to costs associated with construction services provided to customers of $9M.” it added.

In addition to its 100,000 gallons per day liquefaction plant in Miami, it operates a floating LNG terminal in Montego Bay, Jamaica, along with a fuel-handling facility and an associated contract in the US territory of Puerto Rico.