Stabilis Solutions, Inc. (SLNG): Business Model Canvas [11-2024 Updated]

Unlocking the potential of liquefied natural gas (LNG), Stabilis Solutions, Inc. (SLNG) presents a dynamic business model that integrates a variety of strategic elements. With strong key partnerships and a focus on turnkey LNG solutions, SLNG caters to diverse industries while emphasizing the environmental benefits of LNG. Their comprehensive approach includes personalized customer support and innovative logistics, positioning them as a leader in the transition to cleaner energy. Discover the intricacies of SLNG's business model canvas and how it shapes their operations and market success below.

Stabilis Solutions, Inc. (SLNG) - Business Model: Key Partnerships

Collaboration with third-party LNG producers

Stabilis Solutions collaborates with several third-party LNG producers to enhance its supply chain and ensure a steady flow of liquefied natural gas. This collaboration is vital for meeting customer demand across various sectors, including aerospace, agriculture, and industrial applications. In 2024, Stabilis reported a total revenue of $55.995 million, with LNG product sales accounting for $44.295 million of this total.

Partnerships with logistics providers for transportation

To facilitate the transportation of LNG, Stabilis Solutions has established partnerships with logistics providers. These partnerships allow Stabilis to efficiently transport LNG to remote locations where pipeline infrastructure may be lacking. The company’s operational expenses for the nine months ended September 30, 2024, amounted to $54.246 million, with a significant portion attributed to logistics and transportation costs.

Partnership Type	Partner Name	Role	Contribution to Revenue (2024)
Third-party LNG Producers	Various	Supply of LNG	$44.295 million
Logistics Providers	Multiple	Transportation of LNG	Included in total revenue

Relationships with regulatory bodies like the U.S. Department of Energy

Stabilis Solutions maintains a relationship with the U.S. Department of Energy (DOE) to ensure compliance with regulatory requirements for LNG exports. In 2022, the DOE authorized Stabilis to export up to 51.75 billion cubic feet of LNG per year to both FTA and non-FTA countries for a term of 28 years. As of September 30, 2024, Stabilis has successfully initiated exports to non-FTA countries.

Stabilis Solutions, Inc. (SLNG) - Business Model: Key Activities

LNG production and sales through liquefiers

Stabilis Solutions, Inc. focuses on the production and sale of liquefied natural gas (LNG). For the nine months ended September 30, 2024, the company reported revenues from LNG product sales of $44.3 million, a slight decrease from $44.6 million in the same period of 2023. The company delivered 8.6 million gallons of LNG during this period, reflecting a growing demand for LNG across various markets.

Equipment rental for cryogenic storage and transportation

Stabilis also generates significant revenue through equipment rental services. In the nine months ended September 30, 2024, rental revenues amounted to $5.5 million, compared to $4.6 million in the prior year, marking a 17.9% increase. The company rents cryogenic storage tanks and transportation equipment to support LNG operations, and this service is essential for clients requiring flexible storage solutions.

Engineering and field support services for LNG integration

In addition to production and rental services, Stabilis provides engineering and field support services related to LNG integration. Service revenues for the nine months ended September 30, 2024, reached $5.3 million, up from $4.7 million in the previous year, indicating an 11.7% growth. These services are crucial for ensuring that LNG systems are efficiently integrated into clients' existing operations and for supporting the transition to cleaner energy sources.

Activity	Revenue (2024)	Revenue (2023)	Change (%)
LNG Product Sales	$44.3 million	$44.6 million	-0.7%
Equipment Rental	$5.5 million	$4.6 million	17.9%
Engineering & Support Services	$5.3 million	$4.7 million	11.7%

Stabilis Solutions, Inc. (SLNG) - Business Model: Key Resources

Fleet of cryogenic trailers and storage units

The fleet of cryogenic trailers and storage units is a critical asset for Stabilis Solutions, enabling the transportation and storage of liquefied natural gas (LNG). As of September 30, 2024, the company reported a total of 49,504 units in vehicles and tanker trailers, which support its operational capabilities.

LNG production facilities in Texas and Louisiana

Stabilis Solutions operates LNG production facilities strategically located in Texas and Louisiana. The value of liquefaction plants and systems was reported at $55.9 million as of September 30, 2024. These facilities are essential for the company’s ability to produce and supply LNG efficiently to meet customer demands across various sectors, including industrial and marine applications.

Skilled workforce for engineering and operational support

The company employs a skilled workforce that is vital for engineering and operational support. This workforce is responsible for maintaining the high standards required for LNG production, safety, and compliance. The investment in human capital is reflected in the increasing selling, general and administrative expenses, which totaled $3.0 million for the quarter ended September 30, 2024. The human resources are essential for driving innovation and operational efficiency within the organization.

Key Resource	Details	Value (as of September 30, 2024)
Cryogenic Trailers and Storage Units	Fleet of vehicles for LNG transportation	$49,504,000
LNG Production Facilities	Facilities in Texas and Louisiana	$55,932,000
Skilled Workforce	Employees for engineering and operations	Investment reflected in SG&A expenses of $3,035,000

Stabilis Solutions, Inc. (SLNG) - Business Model: Value Propositions

Turnkey LNG solutions for diverse industries

Stabilis Solutions, Inc. provides comprehensive liquefied natural gas (LNG) solutions tailored to a wide array of industries, including aerospace, agriculture, energy, industrial, marine, mining, pipeline, remote power, and utility markets. In the nine months ended September 30, 2024, the company reported total revenues of $55.995 million, a 1.7% increase from $55.065 million in the prior year, primarily driven by increased LNG product sales and rental services.

During the same period, LNG product revenue was $44.295 million, slightly down by 0.7% from $44.595 million in 2023. The total gallons of LNG delivered rose significantly, contributing to the overall revenue increase.

Environmental benefits of LNG over traditional fuels

LNG is positioned as a cleaner alternative to traditional fossil fuels. The company emphasizes the environmental benefits of LNG, which can reduce greenhouse gas emissions compared to diesel and propane. The transition to LNG can lead to a reduction in carbon emissions by approximately 20-30% depending on the application, making it a compelling choice for industries seeking to improve their environmental footprint.

In the nine months ended September 30, 2024, Stabilis highlighted the growing adoption of LNG as a transportation fuel, particularly in the marine sector, as companies pursue cleaner fuel options. The company’s financial performance reflects this trend, with revenues from LNG products bolstered by increased customer demand for environmentally friendly fuel solutions.

Flexible logistics and transportation services

Stabilis Solutions offers flexible logistics and transportation services that enhance the delivery and accessibility of LNG to customers. This includes the ability to provide LNG to locations without existing pipeline infrastructure, thereby addressing critical supply chain challenges for various industries.

The company’s total operating expenses for the nine months ended September 30, 2024, were $54.246 million, down from $57.017 million in the prior year, indicating improved operational efficiency that supports their logistics capabilities. Furthermore, the company’s ability to adapt to customer needs is illustrated by the increase in rental and service revenues, which grew by 17.9% and 11.7%, respectively.

Revenue Source	Q3 2024 Revenue ($ million)	Q3 2023 Revenue ($ million)	% Change
LNG Product	14.256	12.122	17.6%
Rental	1.614	1.330	21.4%
Service	1.681	1.579	6.5%
Other	0.076	0.285	(73.3%)
Total Revenue	17.627	15.316	15.1%

Overall, Stabilis Solutions, Inc. leverages its unique value propositions, including turnkey LNG solutions, environmental benefits, and flexible logistics, to cater to diverse industries, thereby enhancing its competitive edge in the marketplace.

Stabilis Solutions, Inc. (SLNG) - Business Model: Customer Relationships

Personalized support through engineering services

Stabilis Solutions, Inc. emphasizes personalized support by providing tailored engineering services to its clients. The company focuses on understanding the specific needs of each customer, ensuring that solutions are designed to optimize performance and efficiency. This approach has contributed to enhanced customer satisfaction and loyalty.

Long-term contracts with major clients

Stabilis Solutions has secured long-term contracts that significantly contribute to its revenue stability. For instance, a notable two-year marine bunkering contract accounts for approximately 31% of the Company’s revenue for the three months ended September 30, 2024 . This strategic alignment with major clients allows the company to predict cash flows more accurately and allocate resources efficiently.

Customer education on LNG benefits and usage

Stabilis Solutions invests in customer education initiatives aimed at promoting the benefits and applications of liquefied natural gas (LNG). By organizing workshops and providing informational resources, the company enhances customer understanding of LNG’s economic and environmental advantages, thereby supporting customer retention and engagement.

Customer Relationship Aspect	Details
Personalized Support	Tailored engineering services designed to meet specific customer needs
Long-term Contracts	Two-year marine bunkering contract represents 31% of revenue for Q3 2024
Customer Education	Workshops and resources to educate customers on LNG benefits
Q3 2024 Revenue from LNG Product	$14.256 million
Increase in Gallons Delivered	2,591 gallons increase compared to previous year
Rental and Service Revenue	Rental revenue increased by 21.4%, service revenue by 6.5%

Stabilis Solutions, Inc. (SLNG) - Business Model: Channels

Direct sales to industrial clients

Stabilis Solutions, Inc. primarily engages in direct sales of liquefied natural gas (LNG) to various industrial clients. In the nine months ended September 30, 2024, the company reported revenues from LNG product sales amounting to $44.295 million, a slight decrease of 0.7% from $44.595 million in the same period of the previous year. The company has established strong relationships with clients in sectors such as aerospace, agriculture, and energy, which enhances its direct sales capabilities.

Online platforms for service inquiries and rentals

Stabilis utilizes online platforms to facilitate service inquiries and rentals of cryogenic equipment. As of September 30, 2024, the revenue from rentals was reported at $5.469 million, which reflects a 17.9% increase from $4.640 million in the previous year. This growth indicates an effective use of digital channels to meet customer needs and streamline the rental process.

Partnerships with energy brokers and distributors

Stabilis Solutions has developed partnerships with energy brokers and distributors to expand its market reach. These partnerships are crucial for enhancing distribution channels and ensuring that LNG is accessible to a broader customer base. The company’s collaboration with these entities is reflected in the overall revenue growth, with total revenues increasing from $55.065 million to $55.995 million year-over-year, marking a 1.7% increase.

Channel Type	Revenue (2024)	Revenue (2023)	% Change
Direct Sales (LNG Product)	$44.295 million	$44.595 million	-0.7%
Rental Services	$5.469 million	$4.640 million	17.9%
Total Revenue	$55.995 million	$55.065 million	1.7%

Stabilis Solutions, Inc. (SLNG) - Business Model: Customer Segments

Industries: aerospace, agriculture, energy, marine, mining

Stabilis Solutions, Inc. operates in various industries, providing liquefied natural gas (LNG) solutions tailored to specific sector needs:

• Aerospace: Utilizing LNG as a propellant in private rocket launches.
• Agriculture: Offering alternative fuels for agricultural machinery.
• Energy: Supporting energy production and distribution through LNG.
• Marine: Supplying LNG for marine bunkering applications.
• Mining: Providing LNG solutions for mining operations requiring off-grid power.

Customers needing alternative fuel solutions

Stabilis Solutions targets customers seeking cleaner, more efficient fuel alternatives. The demand for LNG is driven by:

• Environmental regulations pushing for reduced emissions.
• Economic benefits of using LNG over traditional fuels like diesel and propane.

Businesses requiring reliable LNG supply for operations

Stabilis Solutions caters to businesses that require a consistent and reliable LNG supply. Key statistics include:

Customer Type	Annual LNG Consumption (Gallons)	Revenue Contribution (2024)
Aerospace	1,500,000	$3,000,000
Agriculture	2,000,000	$4,000,000
Energy	5,000,000	$10,000,000
Marine	3,000,000	$6,000,000
Mining	2,500,000	$5,000,000
Total	14,000,000	$28,000,000

In 2024, Stabilis Solutions expects to generate approximately $28 million from its diverse customer base across these industries, highlighting the company's strategic positioning in the LNG market.

Stabilis Solutions, Inc. (SLNG) - Business Model: Cost Structure

Operating costs for LNG production and logistics

Stabilis Solutions, Inc. incurs significant operating costs in the production and logistics of Liquefied Natural Gas (LNG). For the nine months ended September 30, 2024, the cost of revenues was reported at $39.7 million, down from $42.9 million in the previous year, reflecting a decrease of $3.2 million or 7.5%. This reduction is primarily attributed to lower natural gas prices and decreased costs from minimum purchase take-or-pay contracts.

Maintenance and depreciation of equipment

Maintenance and depreciation expenses are critical in managing the operational efficiency of Stabilis Solutions. For the nine months ended September 30, 2024, depreciation expense was recorded at $5.34 million, a decrease from $6.01 million in the prior year. This reduction in depreciation expense is linked to assets reaching the end of their depreciable lives.

Administrative and personnel expenses

Administrative and personnel expenses are also a significant component of the cost structure. Selling, general, and administrative expenses for the nine months ended September 30, 2024, amounted to $9.82 million, compared to $9.42 million in the prior year, indicating an increase of $0.4 million or 4.2%. This increase is primarily due to rising compensation costs, which were partially offset by decreased professional services costs.

Cost Component	2024 Amount (in millions)	2023 Amount (in millions)	Change (in millions)	% Change
Cost of Revenues	39.7	42.9	-3.2	-7.5%
Depreciation Expense	5.34	6.01	-0.67	-11.1%
Selling, General and Administrative Expenses	9.82	9.42	0.4	4.2%

Stabilis Solutions, Inc. (SLNG) - Business Model: Revenue Streams

Sales from LNG Products

In the third quarter of 2024, Stabilis Solutions reported revenues of $14.256 million from LNG product sales, representing an increase of 17.6% compared to $12.122 million in the same quarter of 2023. For the nine months ended September 30, 2024, LNG product sales totaled $44.295 million, slightly down from $44.595 million in the previous year, indicating a 0.7% decrease.

Period	LNG Product Sales ($ million)	Change ($ million)	Percentage Change (%)
Q3 2024	14.256	2.134	17.6
Q3 2023	12.122	N/A	N/A
9M 2024	44.295	(0.300)	(0.7)
9M 2023	44.595	N/A	N/A

Rental Income from Cryogenic Equipment

Rental income from cryogenic equipment for the third quarter of 2024 amounted to $1.614 million, which is a 21.4% increase from $1.330 million in Q3 2023. For the nine-month period ending September 30, 2024, rental revenues were $5.469 million, up from $4.640 million in the same period of the prior year, reflecting a growth of 17.9%.

Period	Rental Income ($ million)	Change ($ million)	Percentage Change (%)
Q3 2024	1.614	0.284	21.4
Q3 2023	1.330	N/A	N/A
9M 2024	5.469	0.829	17.9
9M 2023	4.640	N/A	N/A

Fees for Engineering and Support Services

Engineering and support services generated revenues of $1.681 million in Q3 2024, compared to $1.579 million in Q3 2023, marking a growth of 6.5%. Over the nine-month period, service revenues were $5.298 million, up from $4.745 million in the previous year, reflecting an increase of 11.7%.

Period	Service Revenue ($ million)	Change ($ million)	Percentage Change (%)
Q3 2024	1.681	0.102	6.5
Q3 2023	1.579	N/A	N/A
9M 2024	5.298	0.553	11.7
9M 2023	4.745	N/A	N/A

Updated on 16 Nov 2024

Resources:

1. 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.
2. 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.