HOUSTON - Stabilis Solutions, Inc. (NASDAQ:SLNG), a prominent clean fuel and power solutions provider, announced on Tuesday the extension of its liquefied natural gas (LNG) supply agreement with a key global industrial power solutions customer. The extended contract ensures the delivery of up to 9.5 million gallons of LNG to support approximately 23 megawatt-hours of grid resiliency power for communities along the Gulf Coast through June 2025.
This agreement is part of Stabilis' strategic focus on multi-year, high-value contractual relationships. The company's LNG supply is anticipated to play a crucial role in meeting the increasing demand for behind-the-meter power solutions across various sectors, including data centers, manufacturing, and other industries.
In 2023, Stabilis supplied LNG to generate around 236,000 megawatts of energy to the power generation sector, which represented 25% of its total revenue. This sector, along with marine bunkering and aerospace, is seen as a significant area for growth by the company.
Westy Ballard, President and CEO of Stabilis, commented on the company's expanding market presence and the evolving energy consumption patterns in the United States. He emphasized the importance of Stabilis' role as a provider of on-demand and redundant power solutions that complement traditional energy infrastructure.
The extension of the supply agreement aligns with the expected increase in domestic energy consumption and the consequent stress on the U.S. electrical grid.
Stabilis Solutions, Inc. is recognized for its clean fueling and power production, storage, and last-mile delivery solutions, serving a diverse range of high-performance brands and customers.
The information in this article is based on a press release statement from Stabilis Solutions, Inc.
InvestingPro Insights
As Stabilis Solutions, Inc. (NASDAQ:SLNG) fortifies its position in the clean energy sector with extended LNG supply contracts, financial metrics and expert analysis from InvestingPro provide a deeper look into the company's performance and future prospects. Stabilis' market capitalization currently stands at 76.38 million USD, which reflects the scale of the company within the industry.
InvestingPro data highlights that Stabilis is trading at a high earnings multiple, with a P/E ratio of 587.14, suggesting a market expectation of future growth. This is supported by the InvestingPro Tips, which indicate that analysts expect both net income and sales to grow in the current year. It's also noteworthy that Stabilis operates with a moderate level of debt, which could be a strategic advantage in maintaining financial stability while pursuing growth opportunities.
Despite recent revenue declines, with a -26.02% change in revenue over the last twelve months as of Q4 2023, analysts remain optimistic about the company's profitability. They predict Stabilis will be profitable this year, as evidenced by the recent profitable period over the last twelve months. However, it is important for investors to note that Stabilis does not pay a dividend, which suggests that the company is likely reinvesting earnings back into the business to fuel further growth.
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With the next earnings date slated for May 7, 2024, investors and stakeholders will be keen to see how Stabilis' strategic initiatives translate into financial results. The company's commitment to long-term contracts and its role in supporting grid resiliency power are pivotal elements that may influence its future performance.
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