SLNG - Earnings call transcript Q4 2024 | Stabilis Solutions, Inc.

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Operator

Welcome to the Stabilis Solutions Fourth Quarter and Full Year 2024 Earnings Conference Call.

[Operator Instructions]

I would now like to turn the call over to Andy Puhala, Chief Financial Officer. Mr. ahead. go please Puhala,

Andrew Puhala

today welcome Results Solutions Puhala, Conference CFO Casey joining President and Interim Chairman Full and President Senior Quarter Year and CEO, me And Stabilis. XXXX Call. of our to morning. Executive Fourth and Stabilis Crenshaw. and Vice is Good I'm Andy

Relations full corporate after publicly financial and results. at release is press We closed detailing operational issued release a our our year yesterday in section the stabillis-solutions.com. Investor available market website the fourth of quarter and This

we conference XXXX. and begin, forward-looking These Private and statements as beliefs meaning I'd that Before XXXX like to February expectations laws. the call within statements of everyone today, remind are of Securities today's of securities forward-looking Reform based Act will on XX, contain other company's the the

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

Additional differences any filings is undue announcing not on could place results. in and statements. Investors contained cause press our the to those information the SEC our are with reliance in cautioned that forward-looking concerning factors release

information we to may Further, please note that call. certain on non-GAAP refer financial today's

You comparable recorded being and measures financial GAAP reconciliations press can most Today's find for call is will of to measures replay. earnings the the non-GAAP available release. in our be

Crenshaw over call Casey the for remarks. hand to I'll that, his With

J. Crenshaw

capital our [ continued pleased years to long-term a of joining which for team much made one year progress commercial a Stabilis, and on increased Thank to equipped leading operationally in platform our from and you, teams the these improved the efficiency with call. to operational last solutions creation. structure. Andy, we strong last XXXX value was I'm few morning expanded us good LNG everyone our mile ] build for

growth by laying operational secure to strengthening year, new future foundation asset our customers. optimization contracts the past for prioritized we and and position the efficiency Over

industries When we lower-cost than wanted founded had Stabilis willing reliable we and one to a local in of XXXX, Customers of clean than many reliable domestic a LNG LNG no decade United reliable with they way mile a a a solution. the platforms we adopt both burning leading ability in fuel markets. last LNG product it simply that were more while provide securing of supply More recognized in needed built to States, later, and the solution one to customers. international the as

linear, and not we've momentum have date. the will the our we ahead building know-how relationships capabilities, to generated and been the not trajectory While business growth the technical has on scale be in years to

just we expanding Coast, reinvesting our of serve growth-related majority and ahead further along in CapEx decade. and particular on small-scale Gulf infrastructure past U.S. with invested of the we We're growth in customers. a over scale for and on new strategy presence focus value existing long-term with recent end, committed a Entering we that To on solutions. a and Stabilis remain allocation prioritize within power In XXXX, handful years, focus has potential efficiency growth capital high during our but including aerospace prioritized that consistent marine, distributed this disciplined to XXXX markets, strategy of we've as our demand the both investments and executed done will the LNG to operational as creation. we

company assured and contributions deep the as X.X career, and chapter to over that next the look the him to Westy knowledge We talented of has the and I'm business of years embarks Stabilis. an be on wish role and excited dedicated he team the an resume last to look of but forward want it, grow leading the and strategy. amazing strong opportunities excellent executing for CEO to of and members his thank his team our success forward management on to group

review Andy will call to over financial our the performance. that, turn With I to

Andrew Puhala

Casey. you, Thank

bunkering move balance increase during a gas fourth fourth compared Let's of due and to and XX% with a prices, the revenues as of to was generation revenues offset in our lower overall together oil our partly and a over sheet in primarily well quarter growth on discussion customer X% Revenue as in the The quarter. by exiting increase lower revenues natural quarter power gas liquidity revenues. decreased our aerospace performance, marine to . revenues decline XX% an update XXX% fourth in the XXXX. quarter

Adjusted revenues was fourth revenues for quarter million of of record of income XXXX. in of quarter, prior marine Fourth $X.X XX% to during the up and from quarter reached XX.X% $X.XX year. compared to share last the year, million, the customers During $XX.X in our or fourth record share or period. XX% EBITDA was increasing the $X.XX compared million of $X.X fourth million per per to a $X million EBITDA the also $X.X quarter of increase quarter margin year. Full compared were generated aerospace XXXX. from derived diluted quarter, XX% Adjusted X.X% we the year the an diluted approximately in by compared a to fourth last quarter, fourth of net

offset generation to of position customers gallons This which in cash volumes the and we 'XX, million year. prices, strong allowed were million liquidity our cash commodity to delivered We by over million, Full from from through natural conversion a gallons during customers over $XX.X a EBITDA $X.X increased million through adjusted from gas by operations XXXX. representing $XX.X year X [ revenue. up as was The generated build EBITDA. lower passed of ] us additional our of XXXX. Importantly, to cash XXX%

year fourth XXXX million mentioned, we Casey directed the capital for of future our our the our $X.X Coast As full growth over in expanded an expenditures train and specifically, along our more infrastructure were million in as In capital million and part of towards $X.X than in quarter invest purchased investments. relocated deployed preparation $X U.S. we storage George capacity as to facility. West in Gulf deployment at our efforts in LNG

XXXX Our capital revenue. represented spending total XX% approximately our of for

forward, expect to $X.X position stable will be Going maintenance as make million for incremental our decisions expenditures on in us at will marine million approximately required capital FID $X growth Significantly to we we CapEx the markets. larger annually. investments certain growth and aerospace remain

X.XXx. with Stabilis outstanding million, of was to successful our had prepared resulting our contracts cash XX-month on December Total debt equivalents million net That These $X.X as of execution of our million, XX, concludes $X.X we As securing focus highlight under as trailing total $X a our XXXX, availability adjusted trends together credit of in debt facilities. XX, December through business incremental growth XXXX, just customers. of remarks. EBITDA and and

please Operator, the open line the for session. Q&A

Operator

Martin [Operator with from Rice. Instructions] Our coming & is Johnson Malloy question first

Martin Malloy

the timetable I for capacity for talk about conjunction with relocation the want bunkering? milestones or Coast with -- to ask Can of train you marine FID the about first another maybe liquefaction to liquefaction expanding to on Gulf project in support the equipment region. the that

J. Crenshaw

and call joining morning, thanks the good today. Marty, for

it the working excess unit And purchased to of last us that easier and as and of and So service marine are of that we make relocated. increased deploy paths the multiple markets with that storage. both and marine some it demand power. in on in aerospace space of for to storage we the And relocated XXXX, distributed stated, units Andy we installed facility and in expand we've kind West our as our storage some George to year that down to capacity got

contracts and an And so platforms we come plant the we're plant Houston for capacity to in working are or that At first customer customers with what with X for contracts will Channel different with marine working both between difference clients financing, the Ship additional the in the Galveston expanding different same how growth time, on properly between bunkering. and got. area what we've that on and finance

So multiple we've growth the we're primary end of discussed that for call, . kind paths drivers. on working multiple markets

Martin Malloy

next And And you forward? a fourth about should maybe just question, lower line the I talk if G&A bit was could ask the quarter this wanted we Okay. what then to little expect quarter. line. It and then G&A about the going

J. Crenshaw

on Andy bottom in were line I'm kind there it follow related But and had accrual for going as that it touch let change bonus Westy's separation. then adjustment up. quick, as is adjustment and Yes. of going an mutual I'm in an some accruals real the to to well Marty, of to

some It and accruals associated onetime And the just the through it then cost company so we'll mutual on just to in between that the Westy. the for that the preview fourth with change first quarter separation also happened year-end cleanup have a in some and quarter. coming was

wants he an to kind see events, are and number onetime those Andy of there. So let if I'll X ongoing the . give

Andrew Puhala

both accruals that The quarter. professional think it lower incentive down you I covered probably Casey quarter, a Other of were rate than year QX. run There it lower ordinary. can services also the Look, sequentially out for going that, and the what full I well. Yes. There was of which the expect and bonus nothing that that were in you year-over-year year at some say some mean, Marty. is timing G&A G&A lower look just last than those. basis, than would is if on forward, I were

Operator

Group. take Sullivan question with we'll our Maxim next And from Tate

Tate Sullivan

decrease million, to that that be the In Is to comment XQ. considerations other XXXX implies able might the . you that related or Carnival I in $X.X year-over-year change in [ for dueling a slight gallons ] on? was think timing contract

Andrew Puhala

call. your being thank for the Tate, joining and on I you you appreciate question.

oil stated, think some working shifting I the operations we've came contracts aerospace, operational off. that some gas, growth efficiency of the of the and do with, end just the we're the where and kind timing of in has mining as of and that to market and of

of on is of of a in then it the contract, gas and a So just timing slower in those, the combination scaling gallons. of of the uptake marine aerospace oil primary the a difference the all the X had and for decrease reason some

Tate Sullivan

Thank you. Andy.......

Andrew Puhala

Andrew. Yes, sorry, is this

me add something. Let

understood were year-over-year increase sure Is in I that right, gallons. question. think referring . the you make to to just we the

Tate Sullivan

Yes. Yes.

Andrew Puhala

Yes.

we're the a late mentioned in that that think part bunkering in my large was comments, as marine full a contract gallons. 'XX 'XX. quarter the was about started up X in in I of in -- And and operation So gallons, million I that

it, So helps. of that that if was big a part

Tate Sullivan

mentioned And separate marine for sure you comments, make prepared miss I your or just to a in that. growth Andy, in percent wanted then, referring total bunkering, year-over-year figure growth were I the didn't And you to . Yes. XQ?

Andrew Puhala

about Yes. comments, talked of QX In we in year-over-year. aerospace both our marine and the growth

Tate Sullivan

about most -- there is you the -- significant potential Is most investments increase some can some to a to if FID. you of the ultimately moving growth that talked before the details about related point then CapEx related potential Can that equipment And talk into spending of of this associated where at FID. around the get in for you can place train. you you trains

Andrew Puhala

Yes.

fourth related West. quarter, down Tate, storage West train was of So in moving liquefaction in the to the [indiscernible] that the George to extra primarily George

So that quarter. was the in the primary that drivers fourth of X

Operator

[Operator with Haimes Management. take next Sage Barry Instructions] from question Asset We'll our .

Barry Haimes

Good quarter.

. new be How the profit long to what that, question too And sort follow-up the in metrics? in could cost? talk and Another of what that would can cost to get to financial terms timing then to Maybe FID EBITDA the either ROIC as finish train. has well out about question. Any And total revenue Could be? share what happen or anything construction? or the the the you as generate project? one remaining you of on other on might

Andrew Puhala

for the Barry, Thanks, question.

in estimate if between that it's to $XX between a up West, that about million we it total George we number end million $XX on we train take so if up it finish construction that putting would end in putting a And different and could marine as if application additional George it gross the million margin million an operating on of West. application water. create and additional the $XX in that $XX on coast it's in train, And bunkering easily

putting depend to going of ready not to more it's to on ourselves I and when a on that's different who working it, into to But that wants that. that for on with most we'd give We're guidance we that. the like to rather of of As we're when date we're around also how we'd will and it take see when ready to the offtake on what terms which think FID kind financing activity, optimize customers couple and to commercial numerous an because [indiscernible] actual on around lock install going are. in. the parties working around be most of

George due have West, longer we're X-month bring a complete we just process it it's the that plant it water, put about on As already XX there. to much for when It's not X could to the we I it's in, we a process believe putting it, [indiscernible] if in if to months.

answers . your I that So question. hope

Barry Haimes

extra terrific. Yes. I that's No, appreciate color. all the

you So talked the one more But with could year hearing there's or of you the schedules do about and about the I'm bunkering tons have that next contract how a that big just see business. many and the question built, out And mean, talk I being have how such. to other LNG customers has you bit little over for Carnival. playing a better feel with delivery ships you probably now you two?

the that and next of kind or of So stands thinking about extra year color on where you're sort any X? now how

Andrew Puhala

about. power growth which the market. the be bunkering, asphalt super then more are to traditional as and whether business, exciting talk off all and got Sure, focus of types applications meter Andy and I'll distributed little the applications area any for the try unique like marine businesses details for aerospace is for don't that all or doing And as to on well publicly exciting, if really we're of space the is he pipe it has power for come other one X got let behind marine an color, exciting. really a in got to guys the distributed or there's we've Barry. we've But bunkering wants our again, I'll applications management as give are to communicated All mining the . company. you I because team we've bit drivers just

bunkering around marine In the space, that of different it's ships converting. really types are

the space, publicly. in And contract hauling so just container also hauling and ships market, tanker car more we've markets got other working that discussed the you've right we're then commodity. cruise ships, on now, around There's

and going and converting client and the our seen that's different region. movers of Florida. of We've rates adopting and the the that, cruise the and to are we're And be at of the that toward space them happen working in area. with on Coast in different type of in early customer help, All depending investments speed take infrastructure, we think Gulf type

in well. ships container can first the the of Gulf of the primary mover think as start time we're and Coast adopt the working be to on We're fuel that all also our and take take supplier seeing to that kind we Coast, of East as in region and U.S. in on of And will over we that quick the advantage as and advantage situation. happen

to easy it's So see.

is market think bottom here advantage cheaper liquefy and the ability and of want I our price take risk in the natural of gas around. at it to America shock have line the people world moves customers to the and not

for that's looking So part and of they're of consistency as their supply around. we're supply chain, working what

Operator

Lehman. Spencer next We'll to Shareholders move

Spencer Lehman

Welcome back, I'm Mr. shareholder. [indiscernible]. long-term a

think, and years like And stock favorable these natural stock. of And almost think I you the I pretty at think, flatlined new partly -- to 'XX a maybe year, think the and administration more due moving specifically, data AI centers and $X very much XX of pretty from And of the advent to this for least [indiscernible] were the quiet, I gas. company. was ago, exciting probably but go activity a at private years. increased responsible I and, being couple back fortunately, 'XX, to

I are that? what's data exciting in mentioned don't and Nobody wondering that's that company. the puzzles And talking in either you your Am we but what's sort word about data that correct marine -- and why that center marine about always see centers. good about as and website. now. on stock me find really market other can't center for press markets. AI your so and exciting know talking mean, Andy, me data data or yes, the correct mentioned your of centers, as or I'm shy What that wrong, in mention And I'm website. far talk aerospace just in if the your But just don't is is centers releases even data press releases because I really is I you I and all

J. Crenshaw

and this the do long-term appreciate holder question, appreciate is your and.... Spencer, you Casey I stock I a and of Crenshaw, being also

Spencer Lehman

Thank you.

J. Crenshaw

applications talk And meter, is create a about if the where the it power I it the weekending and whether behind digital talk bridge the that kind in behind value, of data those overall or we meter virtual our permanent, source energy or the of us we natural business different long-term we're the or gas States. centers Stakeholder the -- work microgrids, power distributed in for power pipeline of trying of form term around for generation company. how think is about backup, to to type power think use it's to market as a whether distributed power be and creating United about, just you being creating of distributed AI which think LNG and about be we end weakened for the for support

to them are distributed provide We're a same of us. All power providing fuel solution. the to that

about a feedback. even we the appreciate no ago, So talked And year one AI.

both talking we're our is to growth connection every a strong regardless that single of it, their we for is we in X distributed that public look stated, end forward working release, of as we it And have single backup Now to connection actual market. and about power on. company in to, bridge markets press every one

But add. being I'll long-term anything appreciate he let a I holder years. XX you through has Andy see to if

Andrew Puhala

we're have generation of power for our XXXX, a our The we've Spencer, at are a doing as marine obviously In I long don't add, But we do more thing of drivers I'd happy that's business. mean, once business data mentioned, It's part We come remote big and some than time, it. that only to when good we've have been Yes. key going we'll Casey we it, think work center And it. aerospace. you'll today and believe be currently. to got know. about any me, and talk

J. Crenshaw

we to strong committed we not to Yes, commercial that distributed a We're We power be area. to careful working the point that. day sure a on have We're and us. actually Spencer, also projects sake on power to distributed of company's if is announcements. we to just I'd investors that want add, team We're but myself, AI. short-term every talking working want important this for make view want stuff the holder. long-term know that that's about for long-term value, be of around to It's

We will we'll to nature, something talk market that's when be in spend about. material about that time talking and of we're

Operator

And Instructions] remarks. call. Q&A [Operator Puhala to portion to conclude I like this now his does for floor today's the Mr. the would closing over of turn

Andrew Puhala

in thank the Well, And us continued and your [indiscernible]. for you everyone company. you, for thank interest joined who today, time

you our our any at learn here or more If for call contact over me concludes questions Stabilis, have to today. Investor doing we're team. about Relations please That want what or

can now you disconnect. . Thank So you.

Operator

This Please Call. XXXX Year Stabilis disconnect your Full have Earnings and Conference Thank a this Solutions you. Fourth and day. Quarter today's concludes line time, wonderful at

Stabilis Solutions (SLNG) 26 Feb 252024 Q4 Earnings call transcript