New Fortress Energy LLC (NFE) stock soared 6.77% in after-hours trading on Friday, following a dramatic plunge earlier in the week. The energy company's shares had previously experienced a steep decline of over 60% after reporting disappointing first-quarter results and announcing the completion of a significant asset sale.
On Wednesday, New Fortress Energy reported a first-quarter loss of $197.4 million, or 73 cents per share, compared to a profit of $56.7 million, or 26 cents per share, in the same period last year. This was significantly wider than the 25 cents per share loss analysts had expected. Revenue also fell short of expectations, coming in at $470.5 million, down from $690.3 million a year earlier and below the $575.3 million analysts had forecast.
Adding to the market's concerns, the company announced the completion of the sale of its assets and operations in Jamaica to Excelerate Energy for $1.06 billion. While CEO Wes Edens described this as a "significant milestone" that would help streamline operations and pay down corporate debt, investors initially reacted negatively to the news. The stock's rebound in after-hours trading suggests that some investors may now view the earlier sell-off as overdone, potentially seeing value in the company's restructuring efforts and improved balance sheet following the asset sale.
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