HOUSTON - Stabilis Solutions, Inc. (NASDAQ:SLNG), a prominent clean energy company, anticipates a significant rise in its aerospace market-related volumes in 2024, projecting more than a 40% increase over the previous year. This growth is expected to account for approximately 10% of the company's full-year sales volumes.
The increased demand for high-purity liquefied natural gas (LNG) as rocket fuel is driving this growth, with the United States emerging as a global leader in commercial rocket launches. Over the past decade, U.S. launches have surged by over 400%, representing more than half of the total global launches in 2023.
High-purity LNG is favored for its benefits in reusable boosters, engine efficiency, and storage convenience. Stabilis, currently supplying around 40% of the U.S. market for high-purity LNG to space launch providers, is positioned to potentially expand its market share with future investments in liquefaction capacity.
Westy Ballard, President and CEO of Stabilis, commented on the company's role in supporting the space industry's growth and discovery, emphasizing their comprehensive clean fueling solutions platform. Stabilis' contracted aerospace volumes further cement its status as a preferred provider of high-purity LNG.
Looking ahead, domestic demand for high-purity LNG is expected to climb by 65% to roughly 25 million gallons annually over the next five years. Stabilis' anticipation of increased market share is contingent upon additional investments in its production capabilities.
This press release contains forward-looking statements regarding the company's future performance and the demand for LNG, which are subject to risks and uncertainties. These include the availability and price of natural gas, unexpected costs, and general economic conditions.
InvestingPro Insights
As Stabilis Solutions, Inc. (NASDAQ:SLNG) gears up for a substantial increase in aerospace-related volumes, InvestingPro data and tips provide a deeper look into the company's financial health and market potential. With a current market capitalization of 77.87 million USD and a rather high P/E ratio of 578.71, the company is trading at a premium based on earnings. This is further highlighted by an adjusted P/E ratio for the last twelve months as of Q4 2023, which stood at -122.97, indicating investor confidence in future growth despite recent losses.
Revenue growth has faced headwinds, with a decline of 26.02% in the last twelve months as of Q4 2023. However, analysts remain optimistic, as reflected in two key InvestingPro Tips: they expect net income to grow this year and predict the company will be profitable within the same timeframe. This aligns with Stabilis' own projections for increased sales volumes in the aerospace sector.
Investors should note that Stabilis operates with a moderate level of debt and has been profitable over the last twelve months. Although the company does not pay a dividend, the focus on growth and profitability could be appealing for those looking for capital appreciation. For those interested, there are additional tips available on InvestingPro that could provide further insights into Stabilis Solutions' potential. To access these tips and real-time metrics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the next earnings date on May 8, 2024, and an analyst fair value target of 9 USD—significantly above the previous close price of 4.19 USD—Stabilis Solutions could be a company to watch. The InvestingPro fair value estimate stands at 5.7 USD, suggesting there is potential upside, but also that investors should conduct thorough research before making any investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.