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NFE is working “diligently” and plans to file its quarterly report on Form 10-Q for the three months ended June 30 “as soon as practicable,” the company said in a filing.
According to NFE, the timing for any resolution of these discussions is “uncertain, and the resolution, or lack thereof, may change the financial statement presentation of our long-term debt and related disclosures in the quarterly report.”
In addition, the company said it requires additional time to complete procedures related to the company’s interim unaudited financial statements and permit the independent registered public accounting firm to complete its interim review.
As a result, the company has determined that it is “unable, without unreasonable effort or expense, to file its quarterly report within the prescribed time period.”
Earlier this year, NFE received a notice from Nasdaq on non-compliance with the latter’s listing rule for not submitting its quarterly report to the SEC.
NFE rescheduled the release of its first-quarter results from May 12 to May 14 to announce the closing of the Jamaica transaction, and announce an update to the use of proceeds.
US FSRU player Excelerate Energy purchased NFE’s business in Jamaica for $1.055 billion.
Revenue from terminal operations dips
NFE said in the filing that its revenue from terminal operations for the three and six-month periods ended June 30 “significantly” decreased compared with the three and six-month periods of 2024.
The company said this is largely related to revenue attributable to the temporary power project in Puerto Rico that was discontinued on March 15, 2024, reduced revenues in Jamaica due to the sale of the company’s business in Jamaica, and lower cargo sales.
In addition, the company’s operating expenses for the three and six-month periods ended June 30 “significantly” increased compared with the corresponding periods of 2024 largely as a result of goodwill and asset impairments, partially offset by the gain on the sale of NFE’s business in Jamaica.
NFE noted that the company sold its temporary power plants to the Puerto Rico Electric Power Authority in March 2024 and completed the sale of its business in Jamaica to Excelerate, and, as a result no longer recognizes revenue from the temporary power project or the Jamaica business.
“We are pursuing, as previously disclosed, a request for equitable adjustment related to the early termination of the temporary power project,” NFE said.