The following is a summary of the Stabilis Solutions, Inc. (SLNG) Q3 2024 Earnings Call Transcript:
Financial Performance:
Stabilis Solutions reported a net income of $1 million or $0.05 per diluted share on revenues of $17.6 million.
Revenue grew by 15.1% year-over-year.
Adjusted EBITDA was $2.6 million, a record for Q3, with an adjusted EBITDA margin of 14.6%, up significantly from 3.5% in the previous year.Cash from operations was $2.6 million, contributing to a solid cash and liquidity position.
Business Progress:
Shifted revenue mix from spot sales to longer-term contractual agreements, with 68% of third quarter revenue under ratable contracts, up from 43% last year.
Enhanced gas processing capabilities have led to improved utilization of owned LNG production facilities and margin realization.
Expanded into marine and aerospace growth markets, with marine and aerospace now comprising about 40% of total revenues.
Secured a multiyear LNG bunkering contract to fuel Carnival Corporation's newest LNG-fueled cruise ship, which supports future revenue streams.
Opportunities:
Identified growth opportunities in fueling large marine vessels, power for data centers, emergency response situations, and high-performance rocket boosters.
Evaluating expansion into new markets in the Caribbean, Central America, and South America.
Exploring data center power generation potential due to expected increase in U.S. power consumption by at least 55 gigawatts by 2030, with data centers consuming about 22 gigawatts.
Risks:
Early-stage growth in new markets like marine bunkering and aerospace may lead to variable project dynamics and require substantial investment.
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