FTAI Infrastructure Inc.: Revenue of $780M, 57% from Railroad business, 25% from Ports and Terminals. Plans for continued investment.
Mar 9th 2023, 11:10 am
Performance Analysis: During the period, FTAI Infrastructure Inc. reported a total revenue of $780.2 million, out of which 57% was contributed by its Railroad business, and 25% by its Ports and Terminals business. The company also reported assets worth $2.5 billion and total redeemable preferred stock and equity of $789.4 million as of December 31, 2022. FTAI Infrastructure Inc.'s operations consist of four primary business lines, namely Railroad, Ports and Terminals, Power and Gas, and Sustainability and Energy Transition. The Railroad business primarily invests in and operates short line and regional railroads in North America, whereas the Ports and Terminals business stores and handles for third parties a variety of energy products, including crude oil, refined products, and clean fuels. The company's Sustainability and Energy Transition business focuses on investments in companies and assets that utilize green technology, produce sustainable fuels and products or enable customers to reduce their carbon footprint. Forward-looking Analysis: Despite the challenging market conditions due to the COVID-19 pandemic, FTAI Infrastructure Inc. performed well during the period, driven by the strategic acquisitions it made and the robust operational performance of its businesses. Going forward, the company's management believes that there are significant opportunities in its markets, and its expertise and business and financing relationships, together with its access to capital and available capital for infrastructure projects in the current market, will allow them to take advantage of these opportunities. The company plans to continue to invest in the transportation and energy industries, and it also plans to pursue additional investment opportunities in other infrastructure businesses and assets that meet its investment objectives. According to the CEO of FTAI Infrastructure Inc., "We are excited to be a standalone public company, and we remain committed to our strategy of investing in high-quality, long-lived infrastructure assets and businesses that provide critical services to transportation and energy networks. We believe that our focus on sustainability and the energy transition puts us in a strong competitive position to benefit from changing market dynamics and customer preferences. Our management team and our external Manager have a track record of identifying attractive opportunities, executing on value-maximizing strategies, and delivering strong returns for our shareholders, and we look forward to continuing to do so as an independent company." The transportation and energy industries remain competitive, and FTAI Infrastructure Inc. will face competition from other companies operating in the same sectors. However, the company's focus on acquiring long-lived assets or operating businesses that provide mission-critical services or functions to infrastructure networks, along with high barriers to entry, strong margins, stable cash flows, and earnings growth, positions it well against its competitors. The ongoing trend towards sustainability and the energy transition also presents significant growth opportunities for the company, as it continues to invest in companies and assets that utilize green technology or produce sustainable fuels and products. Overall, FTAI Infrastructure Inc.'s strong portfolio of assets and businesses, along with its strategic focus on sustainability and the energy transition, should position it well to deliver strong returns for its shareholders in the coming years.