In simpler terms, if a company’s stock nearly disappears within half a year, it leaves investors questioning whether the decline is excessive or a sign of a plummeting share price. Unfortunately, investors in New Fortress Energy have faced this dilemma, as their stock dropped by an alarming 78% during the first six months of 2025, based on data from S&P Global Market Intelligence.
New Fortress Energy focuses on building energy infrastructure, particularly liquefied natural gas (LNG), with the United States currently leading as the world’s top exporter of this resource and projected to expand its share further. On the other hand, Shell anticipates a significant increase in global demand for LNG, potentially rising by nearly 60% by the year 2040.
It’s possible that New Fortress Energy could have greatly profited from the Liquefied Natural Gas (LNG) expansion. However, something significant must have gone awry within the company for it to now be classified as a small-cap stock. Could this become one of the most remarkable comeback stories in history?
Troubles and more troubles
Last year, I found myself in a tight spot with my financial obligations escalating as New Fortress Energy. To ease some of the strain, we postponed our dividend payments back in September. Matters worsened when we had to issue a ‘going concern’ warning in November. This meant that our current cash flow wasn’t sufficient to repay the debts coming due in 2025, and my team and I expressed serious doubts about the company’s capacity to continue operating as usual moving forward.
Given the circumstances, it’s clear that New Fortress Energy has shifted focus towards securing funds via share sales or new loans, which hasn’t been met with enthusiasm from investors. In March, an unexpected distress sale of its Jamaican business for $1 billion was announced by New Fortress Energy, leaving investors in disbelief and causing a significant drop in the stock value.
In between other tasks, New Fortress Energy postponed crucial LNG projects which increased costs and impacted profitability. During the first quarter, this energy company announced a 31% decrease in revenue compared to the previous year, along with a net loss of $0.73 per share – a significant miss of analysts’ expectations.
Is it time to buy New Fortress Energy stock?
It appears that New Fortress Energy still faces significant challenges ahead. Recently, the company postponed its regulatory filing for the last quarter, prompting a notice of delisting threat from the Nasdaq stock exchange. Moreover, when the SEC filing was finally submitted on June 30th, management reiterated their concerns about the company’s financial health, stating that its current liquidity and projected cash flows may not be enough to cover all upcoming obligations.
Recently, New Fortress Energy is encountering a new hurdle. Not long ago, the financial regulatory body of Puerto Rico rejected a proposed 15-year, $20 billion LNG supply deal between two of New Fortress Energy’s subsidiaries. The rejection was due to inconsistencies in the contract, concerns about monopoly formation, and other issues. This dispute between New Fortress Energy and the Puerto Rican government has intensified even more, with the energy company halting an LNG shipment as a result of unpaid bills.
Considering New Fortress Energy’s precarious state, it might be wise to avoid attempting to catch a falling stock.
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2025-07-16 21:44