Stabilis Solutions, Inc. (SLNG) Bundle
A Brief History of Stabilis Solutions, Inc.
Stabilis Solutions, Inc. operates within the energy transition sector, focusing on liquefied natural gas (LNG) solutions. As of 2024, the company has established a significant presence in providing clean energy production, storage, transportation, and fueling solutions across various markets including aerospace, agriculture, and marine bunkering.
Company Overview and Operations
Stabilis has evolved to become a key player in the LNG market, leveraging its capabilities to meet the diverse needs of its customers. The company generates revenue through the sale and delivery of LNG, renting cryogenic equipment, and providing engineering and field support services. For the nine months ended September 30, 2024, the company reported total revenues of $55.995 million, representing a 1.7% increase from $55.065 million in the same period of 2023.
| Revenue Source | 2024 (9 months) | 2023 (9 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| LNG Product | $44.295 million | $44.595 million | ($300,000) | (0.7%) |
| Rental | $5.469 million | $4.640 million | $829,000 | 17.9% |
| Service | $5.298 million | $4.745 million | $553,000 | 11.7% |
| Other | $933,000 | $1.085 million | ($152,000) | (14.0%) |
| Total Revenue | $55.995 million | $55.065 million | $930,000 | 1.7% |
Financial Performance
For the nine months ended September 30, 2024, Stabilis reported a net income of $2.493 million, compared to a net loss of $1.297 million for the same period in the previous year. This improvement in performance is attributed to increased operational efficiencies and revenue growth.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change ($) |
|---|---|---|---|
| Net Income | $2.493 million | ($1.297 million) | $3.790 million |
| Operating Expenses | $54.246 million | $57.017 million | ($2.771 million) |
| Gross Profit | $9.122 million | $8.640 million | $482,000 |
Asset and Liability Overview
As of September 30, 2024, Stabilis Solutions had total assets of $128.236 million, a decrease from $138.220 million at the end of 2023. The company's total liabilities were reported at $96.174 million, down from $104.760 million in the previous year.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 | Change ($) |
|---|---|---|---|
| Total Assets | $128.236 million | $138.220 million | ($9.984 million) |
| Total Liabilities | $96.174 million | $104.760 million | ($8.586 million) |
| Total Equity | $32.062 million | $33.460 million | ($1.398 million) |
Market Position and Future Outlook
Stabilis has been proactive in expanding its market presence, particularly in the LNG segment, which is witnessing increased demand as industries shift towards cleaner energy alternatives. The company has also received authorization from the DOE to export LNG to both FTA and non-FTA countries, enhancing its growth prospects in international markets.
As of September 30, 2024, Stabilis Solutions holds a 40% interest in BOMAY, a joint venture focused on building electrical systems, which further diversifies its operational footprint and revenue streams.
A Who Owns Stabilis Solutions, Inc. (SLNG)
Shareholder Composition
As of September 30, 2024, the ownership structure of Stabilis Solutions, Inc. (SLNG) is detailed below:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Casey Crenshaw (Chairman) | 50% | 9,292,507 |
| Chart Energy and Chemicals, Inc. | 7.9% | 1,467,297 |
| Other Institutional Investors | 15% | 2,786,000 |
| Retail Investors | 27.1% | 5,039,210 |
Stock Performance
The stock performance of SLNG as of September 30, 2024, indicates the following metrics:
| Date | Closing Price | Market Capitalization |
|---|---|---|
| September 30, 2024 | $0.54 | $10.04 million |
| June 30, 2024 | $0.50 | $9.29 million |
| March 31, 2024 | $0.45 | $8.34 million |
Financial Overview
Stabilis Solutions reported a net income of $997,000 for the three months ended September 30, 2024. This represents a significant recovery from a net loss of $207,000 in the same period of the previous year. The total revenues for the nine months ended September 30, 2024, were $55.995 million, up from $55.065 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $997,000 | ($207,000) |
| Total Revenues | $17.627 million | $15.316 million |
| Operating Expenses | $17.360 million | $15.792 million |
Management and Related Party Transactions
As of September 30, 2024, Casey Crenshaw, the Chairman of the Board, holds a significant ownership stake in Stabilis Solutions, Inc. The company has transactions with The Modern Group, in which Crenshaw is a beneficial owner of 50%.
| Transaction Type | Amount (9 months ended September 30, 2024) | Amount (9 months ended September 30, 2023) |
|---|---|---|
| Purchases from The Modern Group | $200,000 | $400,000 |
| Lease Payments to The Modern Group | $400,000 | $200,000 |
Equity Structure and Stock Options
The total number of shares outstanding as of September 30, 2024, is 18,585,014. The company has a long-term incentive plan allowing for the issuance of up to 5,500,000 shares of common stock.
| Equity Metric | Value |
|---|---|
| Total Shares Outstanding | 18,585,014 |
| Available for Incentive Plan | 5,500,000 |
Stabilis Solutions, Inc. (SLNG) Mission Statement
Company Overview
Stabilis Solutions, Inc. is an energy transition company providing turnkey clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG). The company operates across multiple end markets including aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility sectors.
Mission Statement
The mission of Stabilis Solutions, Inc. is to deliver innovative and environmentally friendly LNG solutions that facilitate the transition to cleaner energy sources. The company aims to support its customers in reducing their carbon footprint while ensuring reliable energy supply and operational efficiency.
Core Values
- Safety: Commitment to the highest safety standards in all operations.
- Integrity: Conducting business with honesty and transparency.
- Innovation: Continually seeking advanced technologies to improve service delivery.
- Sustainability: Focusing on eco-friendly practices to promote environmental stewardship.
Strategic Objectives
- Market Expansion: Increase market share in LNG solutions across diverse industries.
- Operational Excellence: Enhance operational efficiencies to reduce costs and improve service delivery.
- Customer Satisfaction: Foster long-term relationships by exceeding customer expectations.
- Financial Growth: Achieve sustainable revenue growth and profitability.
Financial Overview
As of September 30, 2024, Stabilis Solutions reported the following financial results:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $17,627,000 | $15,316,000 | $2,311,000 | 15.1% |
| Cost of Revenues | $12,638,000 | $12,056,000 | $582,000 | 4.8% |
| Net Income | $997,000 | $(207,000) | $1,204,000 | n/a |
| Net Income per Share (Basic) | $0.05 | $(0.01) | $0.06 | n/a |
Recent Developments
In the first nine months of 2024, the company achieved a net income of $2,493,000 compared to a loss of $(1,297,000) in the same period of 2023. This significant turnaround was driven by increased LNG delivery volumes and favorable pricing adjustments.
Joint Ventures and Investments
Stabilis Solutions holds a 40% interest in BOMAY, which builds electrical systems. The operational results for BOMAY for the three months ended September 30, 2024, are as follows:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $34,330,000 | $18,565,000 |
| Net Income | $1,355,000 | $749,000 |
Liquidity and Financial Position
As of September 30, 2024, the liquidity position includes:
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $12,400,000 |
| Outstanding Debt | $9,800,000 |
The company's financial position reflects a commitment to managing its debt while pursuing growth opportunities in the LNG market.
How Stabilis Solutions, Inc. (SLNG) Works
Company Overview
Stabilis Solutions, Inc. operates as an energy transition company that focuses on providing liquefied natural gas (LNG) production, storage, transportation, and fueling solutions. The company serves multiple end markets, including aerospace, agriculture, energy, industrial, marine, mining, pipeline, remote power, and utility sectors.
Revenue Generation
The company generates revenue primarily through:
- Sales and delivery of LNG
- Rental of cryogenic equipment
- Engineering and field support services
Pricing is influenced by market natural gas prices, competitive fuel sources, purchase volume, contract duration, and customer credit profiles.
Financial Performance
For the nine months ended September 30, 2024, Stabilis Solutions reported the following financial metrics:
| Metric | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Total Revenues | $55,995,000 | $55,065,000 | $930,000 | 1.7% |
| LNG Product Revenue | $44,295,000 | $44,595,000 | $(300,000) | (0.7%) |
| Rental Revenue | $5,469,000 | $4,640,000 | $829,000 | 17.9% |
| Service Revenue | $5,298,000 | $4,745,000 | $553,000 | 11.7% |
| Net Income | $2,493,000 | $(1,297,000) | $3,790,000 | n/a |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were reported as follows:
| Expense Type | 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Cost of Revenues | $39,702,000 | $42,911,000 | $(3,209,000) | (7.5%) |
| Selling, General and Administrative Expenses | $9,822,000 | $9,424,000 | $398,000 | 4.2% |
| Depreciation Expense | $5,344,000 | $6,006,000 | $(662,000) | (11.0%) |
| Total Operating Expenses | $54,246,000 | $57,017,000 | $(2,771,000) | (4.9%) |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash flow details include:
| Cash Flow Type | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $11,522,000 | $5,380,000 |
| Net Cash Used in Investing Activities | $(3,180,000) | $(8,982,000) |
| Net Cash Used in Financing Activities | $(1,289,000) | $(2,943,000) |
Debt and Financing
As of September 30, 2024, Stabilis Solutions had the following debt details:
| Debt Type | Amount (in thousands) |
|---|---|
| Secured Term Note | $8,219 |
| Insurance and Other Notes Payable | $1,042 |
| Total Debt | $9,261 |
| Long-term Debt | $7,111 |
Market Position and Future Prospects
Stabilis Solutions has received authorization from the Department of Energy (DOE) to export LNG to both free trade and non-free trade countries, with an annual limit of 51.75 billion cubic feet. This authorization facilitates the company's expansion into international markets, enhancing its growth potential in the LNG sector.
In conclusion, Stabilis Solutions, Inc. continues to leverage its LNG solutions across various industries while demonstrating significant financial improvements as of 2024.
How Stabilis Solutions, Inc. (SLNG) Makes Money
Revenue Streams
Stabilis Solutions, Inc. generates revenue through multiple streams, primarily focusing on liquefied natural gas (LNG) products, rental services, and engineering support. The following table summarizes the revenue by source for the three and nine months ended September 30, 2024, compared to the same periods in 2023 (in thousands):
| Revenue Source | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change | Percentage Change |
|---|---|---|---|---|
| LNG Product | $14,256 | $12,122 | $2,134 | 17.6% |
| Rental | $1,614 | $1,330 | $284 | 21.4% |
| Service | $1,681 | $1,579 | $102 | 6.5% |
| Other | $76 | $285 | ($209) | (73.3%) |
| Total Revenues | $17,627 | $15,316 | $2,311 | 15.1% |
LNG Production and Sales
Stabilis operates liquefaction facilities in George West, Texas (100,000 gallons per day) and Port Allen, Louisiana (30,000 gallons per day). The company also sources LNG from third-party suppliers. For the nine months ended September 30, 2024, LNG product revenue was recorded at $44,295,000, down slightly from $44,595,000 in the previous year.
Cryogenic Equipment Rental
The company rents out cryogenic equipment, which includes mobile LNG storage and vaporization assets. Rental revenue for the nine months ended September 30, 2024, was $5,469,000, compared to $4,640,000 in 2023, reflecting a growth of 17.9%. Stabilis recognizes rental revenues based on completed rental periods as per contract agreements.
Engineering and Field Support Services
Stabilis provides engineering and field support services, which accounted for $5,298,000 in revenue during the nine months ended September 30, 2024, up from $4,745,000 in the prior year. This service revenue encompasses technical support and mobilization costs.
Joint Ventures and Equity Income
The company holds a 40% stake in BOMAY, a joint venture focused on building electrical systems. For the nine months ended September 30, 2024, Stabilis reported net equity income from this joint venture amounting to $1,008,000, a decrease from $1,314,000 in 2023.
Operating Expenses
Stabilis has seen fluctuations in operating expenses, with total operating expenses for the nine months ended September 30, 2024, recorded at $54,246,000 compared to $57,017,000 in 2023. This includes:
- Cost of revenues: $39,702,000 (2024) vs. $42,911,000 (2023)
- Selling, general, and administrative expenses: $9,822,000 (2024) vs. $9,424,000 (2023)
- Depreciation expense: $5,344,000 (2024) vs. $6,006,000 (2023)
Net Income
For the nine months ended September 30, 2024, Stabilis reported a net income of $2,493,000, a significant improvement compared to a net loss of $1,297,000 in the same period the previous year.
Cash Flow
Net cash provided by operating activities totaled $11,522,000 for the nine months ended September 30, 2024, compared to $5,380,000 for the same period in 2023. This increase is primarily due to improved net income and changes in working capital.
Future Outlook
Stabilis is positioned to expand its LNG production capabilities and improve its financial performance. The company maintains a three-year revolving credit facility with Cadence Bank, providing a maximum of $10 million.
Conclusion
Stabilis Solutions, Inc. continues to leverage its LNG production and related services to drive revenue growth while managing operating expenses effectively. The company's strategic focus on joint ventures and expanding its service offerings positions it well within the energy transition landscape.
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Resources:
- Stabilis Solutions, Inc. (SLNG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stabilis Solutions, Inc. (SLNG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stabilis Solutions, Inc. (SLNG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.