SLNG - Earnings call 3 2020 | Stabilis Solutions, Inc.

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Operator

Ladies and gentlemen, before we begin today's call, I would like to remind everyone that today's conference call will contain forward-looking statements within the meaning of the Private Securities Reform Act of 1995 and other securities laws. These forward-looking statements are based on the company's beliefs and expectations as of today November 12, 2020.

Forward-looking statements are subject to the risks and uncertainties that may cause actual results to differ materially from those projected. The company undertakes no obligation to release updates or revisions to the forward-looking statements made in today's conference call.

Additional information concerning factors that could cause those differences is contained in the company's filings with the SEC and the press release announcing the company's results. Conference to like reliance to to Solutions Quarter not statement. I any the cautioned Third now would welcome Earnings are place on undue forward-looking Stabilis Investors Call. you all this Today's call the over Stabilis Jim to I of like President CEO to call and time, Reddinger, Solutions. is turn would recorded. At being ahead, sir. Please go

James Reddinger

Vice me the CEO call of Senior Stabilis Thanks a everybody. and recent morning, Puhala, and good President call name Again, this Andy And change. earnings our start for President this with on call. I Thanks lot, and is the is the Jim third wanted to addressing joining Reddinger, on morning CFO. Solutions. conference quarter our by us XXXX our

As announced last we changed month, have the company's

[Audio Gap]

and customers. generation, including to mission across cost, to and few. process we Solutions a gas, heat, clean, liquefied low hydrogen variety reflect the Stabilis markets, agriculture, energy provides natural of to to our power a solutions, including mining, name compressed customers just marine industrial wide new applications, natural our provide Solutions and value gas better end

our few, energy. be cases, transitions have to of sustainable customers energy allow as any, harmful critical fuel fueling well to who more in emissions transition that energy provide sources reduce solutions Our their and if gas as will power Natural environmental world the customers And less costs. their fuel these as new other solutions renewable many and solutions hydrogen alternatives. sources partners for to and carbon-intensive to

this around reliable is Stabilis the solar now, generation wind right a energy power alongside Solutions provides LNG power And cost-effective transition. example, For leader in and world. and

companies is upstream and avoid Gap] around change that any name persistent Stabilis weakness energy is helps prices associated or the misconception commodity Despite them. Secondly, associate [Audio in us with or the

Gap] [Audio

their markets, positive diverse This grew our of to by natural oils solutions. end across the returned polluting from was a customers in consumption company set EBITDA. away driven energy activity revenues fuel to the transitioning quarter, cleaner XX% third fuel and producing by gas Stabilis'

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the turn Now to discuss call I'll over financial our Andy results. to

Andrew Puhala

Jim. Thanks,

Louisiana. to revenue remote in an segment well Mexico of Jim the quarter sequentially by to from delivered remote LNG a our in our the June XX% gallons million As of from increase the X.X a $X.X second George to as XX% increased LNG million $X the in $X XX%. jumped aided was and customers, revenues third power multiyear of We to installations large a low million increased quarter. to in $X XX% saw revenue XX% provided of power quarter. legacy compared in the of West, our recovery as to with gallons, facility second liquefaction mentioned, in million many hurricane-impacted million and project LNG ended areas further utilization quarter, XX, were

segment Delivery Power reported the up sequentially million, in $X.X of quarter. Our $X XX% second revenues million from reported the

Chinese with million. QX, venture net reported our Although of down $X.X income quarter strong another equity joint from

returned improvement mentioned, quarter. territory adjusted for net Jim and from improvement the $X.X for million to million, loss As EBITDA $X.X from $X.X shrank a the $X.X the to million, quarter positive million second QX. was The quarter an of

XX% to from crisis, in the $X.X of year. segment of year-over-year were QX current revenues million of reported million million were the COVID Due to period the QX XXXX. the XX% million, results. in Moving LNG revenues $X last from $XX.X $X.X down down

QX, the plant George previously, of the in XX% mentioned As down West year our in utilization from quarter. was XX% ago

X year-on-year sources for and effectively from to a some of loss numbers fund only $X.X We gallons included back remarks. year EBITDA by XX% mix XXXX, quarter, months with additional was net due the the revenues prior $X.X customers. The September LNG million our the Electric result crisis a of $X.X previously adequate the from equity mentioned, in reported quarter million of our our Jim due from to Chinese $X.X were access the XXXX with Power although third-party liquefiers period versus a quarter, merger of basis, to growth. I'll QX call in Delivery shrank of in continue ago year. Adjusted ago was to On post to Net in million million of we Delivery consistent approximately in million Jim? Brazilian devaluation have geographic through $X.X company's a COVID now and year turn the timing increased by as $X.X to to the significant merger July as venture, finished loss the the full the that liquidity consistent joint million $X.X of QX and XX XX cash with quarter. versus of million cash income believe the segment declined primarily real from current with However, the dollar. American the U.S. XX%, reverse Technologies. the revenues and of Power the

James Reddinger

summarize the particularly staff, the To earnings targeted extremely growth expand experienced customer-facing the pleased us. of investments staff with field meet the QX capabilities service call, from making quarter. Adding the earlier front Andy. in the COVID-related that opportunities second CapEx in we're and to our we we are lows recovery see Thanks, to in

there's capabilities is Mexican example we additional see strategic Our space a to shares Northwestern we marine our fueling major fuel this provide customers in for come and securing the activity market X.X of gallons an it our to technical growth opportunity more XXXX, contract marine demonstrates months. In and accelerating, by bunkering projects marine support opportunities in many the expect also like some the believe to year power project have marine one with in LNG the achieved going of us remote already we quarter exploring hydrogen, Mexico, pipeline. Outside of strong gas services the this bunkering ever begun X to with [Audio business natural believe our customer XX a We of and next we our properties Mexico, million distributed the believe goals and of for contract support Mexico, customer. forward. We're to to first from we will bunkering, the Gap] provided LNG of in that We allow third cryogenic similar that as largest market. is in the of you'd many also in

that carbon X emissions. provide

this fuel. know, call the on on you of particular of focus it's increasing many amount the As

In And customer see about addition, contracts continues and broaden new believe, our the we've the to base. we pipeline pipeline, the sales our be we strong. opportunities talked significantly in will

global and associated become rapidly with the power want to long-term superior believe energy remains gas small-scale they provide strategy provide, transition that to solution. an energy that customers. along value solutions energy preeminent service generation the We ongoing unchanged. the support and natural America's Our North our piece of providing increasingly of clean important hydrogen, are becoming by provider We that

take to to Finally, that well address ahead under information easier and I want questions. new dash launched the solutions, change and There's provide our about we we that, website start we'll everyone for go at call www.stabilis-solutions.com. the the please Moderator, for to name, a as Stabilis look to being and invite process. between a company. And access open on, as with that to the thanks everyone

Operator

first Craig with Brothers. we from Shere Tuohy will [Operator our of question And Instructions] the line take

Craig Shere

couple into a the investigations you hydrogen, it's know you down convert have But technical I chart to questions. ready road. A the any liquefaction had mentioned of you any ability source? to way have or One, if small-scale discussions with hydrogen, cash

James Reddinger

very [Audio Yes. the as you and hydrogen to I very, Gap] Craig, is produce mean, distribute technology know,

methane used produce liquid distribute and gas. that to

and Our company, new science project the hydrogen applications. multiple where and in new on experienced projects, processes developing ranging history, to more practical technologies variety from equipment you're has its

we begun we've working we're as our adapt for company our source. the around customers or the we've as some can to sure with with topic, around equipment fuel time. partners either existing been a on of make we market how and fuel. And get equipment So equipment handle working that stirs add to who're And all hydrogen that new a hydrogen active to as suppliers explore

Craig Shere

convert any have it LNG estimate you might Do hydrogen? train for what an to cost to

James Reddinger

for I have now. one don't you right

Craig Shere

opportunity Okay. And growth on this expectations? and share could both you future the about anything margin bunkering thing,

James Reddinger

and our that a do the to lot a and of mean things handling value last Craig, in over that. of delivery is in strategy, aspects bringing mile operational Yes. of we be doing fuel chain, to I technical that best customers bunkering lot

partners with a number of marine who and or of runs into are say, testing their marine it. bunkering a of working So ports with processes their trial and, companies right to we're either LNG would I now, convert number undergoing working customers and --

in our initial it's development and But margins I'd growth and the contracting a business the where say, of So use we're to from Craig, are be that leverage now, space operations, long-term conducting complete. chain measurable. we'll the perspective, would more into right projects these stage once test than more longer-term we're a in operations the stage,

Operator

move Capital. with will we next Dezellem with Tieton Bill And

William Dezellem

group questions. A of

all, business expected duration if power any when be an of came online? to the it's about remote contract I'd cycle that has like or And sales contract contract? talk the Mexico. to if to evergreen-type First you in about Would us talk finite or it

James Reddinger

Sure.

actually -- field X is contract and one in around of just occasion the we the in under to turn to on Our inquiry proud equipment having this we're an weeks. able of were things

additional peaking that power So of for it realized needed generation some they organization their in. minute operations. last inquiry was a The came

so the of an working were additional renewing in going that's the a And that project. that provide And ongoing. and time be able need LNG for to country periods. and for fuel we're we to now contract It's area step on

William Dezellem

hear days? was X XX we did you say sales weeks, like Jim, the cycle

James Reddinger

the power to Just realize consumer were process, and the in was late able that didn't -- until very a one for need them. had it quickly we react that they to

William Dezellem

what the for? supply And use? is that discuss And to would source extra have longer-term to able so power being what LNG And customer continue missed to wanting you degree be to a how of path? down the the used able they're versus different

James Reddinger

Yes.

you've got that's needs supply. demand additional think theme on issues around in that or don't are and pipelines I cooling in winter it's capacity system the are surge of not theme summer their pipeline maybe of got heating hit the anybody to the want to those require, periods, missed often I a say particularly got the been customers some anything, able demand you've of built serve you general but you've that -- it's general when with -- when

anything. don't necessarily anyone missed I think So

we're it an what an this introduction one through you've needs get That's here. a -- think and experience to program believe the will next opportunity extend our come. a we going now cycle, -- very were you And few ground with it that but that some I some had in get a I when relationships the that able to years. short the customers that ahead different continue to involvement sales guess, over when there of with it's got be of time. happened period was seasonal to We over you, on

Operator

Judson will we Tuohy Tuohy take from with Brothers. question our And next

Judson Tuohy

breadth are of of and questions, my that just piece driving one on Can talk more got depth the business that sort I the customers of and mix? Mexican about think most the accelerating. maybe but you Craig

James Reddinger

Yes. sectors And I we're here, too mean we're The broad is one we're Mexico. that seeing operation be of it it but number from not a seeing lot really in sector. customers to as projects -- a megawatts, Gap] XX, that small be shorter-term can a needs. customers megawatt [Audio longer-term that XX, XX few could have it this for and and needs have few as be as from

are industrial a very focused activities generation, are particularly from using for on generation reasons that that it seeing for there. And power So along some process that, other of a those generation the various bit are things But again, power we're amount good of We're heat. power side and remote grid. mines down off locations, activity theme. the again, sites

the set pipeline we're And seeing the with what get there's the that's the of So seeking it. bring way do cost up some can and that seeing. world, what on to that places because we're constraints in of natural help networks fill we're -- off part and where pipelines various are emissions, help with in those gas, need helps natural and gaps gas is to which the people

Judson Tuohy

sensing And pretty then more in about of are of who that that? terms Is in exciting, kind Terrific. you're terms you kind inflection interest? Or that in saying are hydrogen stage? hearing driving on you still terms talking Monterrey from are the just time of it the point early story. of of you one side, line? And guys an are What customers

James Reddinger

Yes. projects, help the in our of follow there. have technology manufacturing projects hydrogen of to And market participating economic. in and them of are the solutions that pilot some the the customers we profile. We're we're of market phases. got whole terms in boots ground marine place ways development to on a that you activity sense execution. My can to a profile around actually development few on are production similar people it, to experience type bunkering the get us a getting ready to to what side emissions given to There service a be I where talk customers and executing of will off the who cost bring trying then the mean, and then range are I then amount use of they're tremendous are them to so ground the the guys -- on or we're ground segment more got obviously really the do that that other service. designing that getting of that's of customers. experience the of with it's is It's programs development to know interest And really is, those with participating grow these with and that very LNG customers and that out to get pilot to that help do from

equipment the it. technology the early it's it execution we're of and opposed side on as stages, of So focused I'd part really to say or manufacturing

Operator

Ross We with ] next BBVA. will move [ Warren with

Unknown Analyst

Whether wondering, anything spreads of can about us side? share your about Just or you with LNG sort next on year this of outlook volume and rest year. volume the for into it's the

James Reddinger

Yes. be a We're in months. do Warren will better -- that to I equipped think few

where and July significant. be year you pretty to We're where coaster last March have now it happy the As really purposes back November to was the to roughly. roller May to to has it been business's intents know, we with expected would from or

before can would pretty say start growth And projecting we visibility we and significant people getting were so starting expecting this growth, whole getting believe economy we've we to think where situation But point forecasting. have into that any to enough now to that, the we're that's got significant fuel the reason to down, back pretty XXXX again. don't just coming that are and work I changed back use I slowed

Operator

Tieton a follow-up [Operator we have from Bill with Capital. Instructions] Dezellem And

William Dezellem

on there? update permitting what the please experiencing? And you're an Relative Mexico, would you to provide process down

James Reddinger

government opened the a up of The now. Yes. been bit -- for relevant most agencies have

applications are moving want think quarter. would this I got that being, it current to to job or through a probably guess, back some call that's current, that. with, if they're deal so great expect, sometime coming And that, with you as in you backlog We but doing they've of to

on So it's back track.

William Dezellem

permit? that if we're with you told So the should if line are success approval have you permitting to normal starting at the to under you that would time need line the expect or circumstances, -- we that when what do anticipating I guess now, have

James Reddinger

think we roughly of a at before think I shut down, year I which the to started we're back beginning is X-month process. the where

William Dezellem

will hurricane or terms then the there? questions. frac of additional asked I some than we And some completion to without fact, you a you on as oilfield completion what tied And are the activity seeing sensing diesel-powered have hurricane? And activity, in question drilling spread are opportunity may powered that And projects activity power of the then be spreads? heard spirit come Can faster DUCs front, that in up are Great. LNG completed. indication secondarily, about that, picking the the happening, spreads temporary in is the couple that talk if back you of

James Reddinger

Yes.

coming X figured need the what is the probably is of using one you're of seeing. of discussions on to to as last the frac going out with is we've there, think companies over be activity as business them. and I But fits things oilfield. that out We seems in think better although right the companies are do There we're projecting happen it I ongoing what's we from operators starts. energy get months and about well service thinking to in the the turbine-powered have

be we're standpoint seeing we're soon prepared this I as quarters. out opportunities staffing I execute coming we're we've equipment of that's activity And you guess, hoping, from alluded And up. the come So know those to, there. up as as couple to a and soon. going had to

William Dezellem

then hurricane? And

James Reddinger

been And be number Coast been a more providers from lots year. digits or there to involved now to Yes. cetera. And megawatts of particularly low guys anywhere pretty and case, a in the they time. to you know, provider we've hooked power power that emerging lines, western had of of support power lots there. single locations down cities, -- with ongoing to The hurricane XX, X et substations over to those and of need are that rough projects X of as we've power much separate we that And this as into, repaired. manufacturing got facilities, as work the season XX anticipate And have think, producing business been part permit as this plus look the down September, the on hurricane Gulf Louisiana I X on infrastructure approximately since month side, repair

high margins us, and nice complex, well. as projects volumes for very nice service them but coming of out also So

it's So us last business been several over months. good for the

William Dezellem

say to that we the year the now? to of Great. if indicate that you a in October now it was where And business accelerate then November ago. back essentially And continued finally, did business has is I'm middle in then hear would case, thinking November. that's and that

Just wanting to pieces we those heard all see if correct.

James Reddinger

Yes, Bill, was approximating. I

went through we're where in were Andy the year numbers, think this back I time. exact ballpark but last at of the we

I think little and plants the production and But back distribution. in mix different between ballpark. that is same we're a

And And has I'd so third we that Gap] have yes, had continued as we've nice say, the reported. end since some of the third that in the talked [Audio quarter quarter. momentum

Operator

it Instructions] no [Operator And questions have at appears this further that we time.

James Reddinger

joining Well, next call, quarter. forward look talking and to thanks, everyone, for we the Great. again

Operator

does participation. your you for And conclude this program. Thank today's

time. may at disconnect You any

Stabilis Solutions (SLNG) 12 Nov 202020 Q3 Earnings call transcript