The following is a summary of the Stabilis Solutions, Inc. (SLNG) Q4 2023 Earnings Call Transcript:
Financial Performance:
Stabilis Solutions reported a sequential increase in revenue by 18% in Q4 2023, achieving profitability for the first time since Q1 2023.
The company yielded $1.3 million from operations in Q4 and a total of $6.7 million for the year 2023.
The total cash equivalent by the end of 2023 stood at $5.4 million, with $5.6 million available under credit facilities, and a total debt of $9.4 million, presenting a net debt to trailing 12-month adjusted EBITDA ratio of 0.6x.
More than $11 million were maintained in cash on hand and credit facilities availability and they reported a net leverage ratio of 0.6x the 2023 adjusted EBITDA.
Business Progress:
Stabilis' George West facility resumed full production in Q4 2023, currently operating at around 95% capacity.
The Q4 performance escalated due to new project commissions, and improvements at the George West facility that broadened the use of various stocks.
Strategies for further capital investments are being reviewed in expectation for the growth in demand for their solutions.
-Stabilis is shifting to longer-duration, take-or-pay contracts to enhance asset optimization and cash flow predictability.
Progress was noted within their marine segment in 2023, predicted to contribute about 33% of total revenue in 2024, up from 14% in 2023.
They hold a multiyear marine bunkering contract with Carnival Corporation.
Stabilis supplied approximately 3.4 million gallons of high purity methane for space rockets, which was 7% of total volumes for the year.
Prospects for portfolio diversification and licensing opportunities for LNG exports, particularly in Europe, are being explored.
In line with demand trends, the company plans to optimize existing assets and supply chain alongside scalable investments in the future.
More details: Stabilis Solutions IR
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