Part 1: Performance Analysis
Stabilis Solutions, Inc. is an energy transition company that provides turnkey clean energy production, storage, transportation, and fueling solutions using liquefied natural gas (LNG) to multiple end markets across North America. The company generates revenue by selling and delivering LNG to customers, renting cryogenic equipment, and offering engineering and field support services. The company had a successful year in 2022, with a significant highlight being the approval to export domestically produced LNG to all free trade and non-free trade countries, including Asian, European, and Latin American importing nations for up to 51.75 billion cubic feet per year of natural gas equivalent. The company's LNG solutions provide environmental and economic benefits, making it an ideal replacement for other alternative fuels, such as propane and distillate fuel oil.
Moreover, the company operates a fleet of mobile LNG storage and vaporization assets, including transportation trailers, electric and gas-fired vaporizers, ambient vaporizers, storage tanks, and mobile vehicle fuelers. Stabilis Solution's fleet consists primarily of trailer-mounted mobile assets, making delivery to and between customer locations more efficient. The company's engineers are experts in integrating LNG into fueling operations, while field service technicians help customers mobilize, commission and reliably operate on the job site. Additionally, the company offers turnkey transportation and logistics services, making it easy for its customers to move LNG to locations that are not serviced by pipelines or require additional fuel supplementation.
In Q4 2022, the company sold its operations in Brazil for approximately $0.9 million, resulting in discontinued operations presentation of the Brazil Operations and an impairment charge of $1.4 million. Nonetheless, this did not impede the company's overall positive performance.
Part 2: Forward-Looking Analysis
Stabilis Solutions, Inc. is well-positioned in the market, with its cost-effective and reliable small-scale LNG solutions providing a viable balance between environmental sustainability, security, accessibility, and economic viability. The LNG solutions are gradually gaining more recognition globally due to their environmental and economic benefits. Furthermore, the company's DOE authorization to export domestically produced LNG to all free-trade and non-free-trade countries presents a significant growth opportunity. The approval opens up new potential revenue streams, expands the company's reach, and facilitates access to new markets in Asia, Europe, and Latin America while also providing access to additional importing nations.
Recently, Stabilis Solutions also partnered with Chart Industries, Inc. in a joint venture to build a new 30,000 LNG gallon per day liquefaction plant in Texas. The partnership with Chart Industries will provide Stabilis Solutions with additional LNG production capacity, which will be important for meeting the growing demand for its solutions. The collaboration will boost performance potential, as the market continues to grow, with increasing demand for cleaner and affordable energy sources.
Overall, the future outlook for Stabilis Solutions looks promising. The company's innovative, cost-effective, and eco-friendly energy solutions, coupled with its turnkey transportation and logistics services, place it in a strong position to capitalize on the evolving energy transition. The expertise and experience of its engineers and field service technicians provide a unique value proposition that is sure to attract a growing clientele base. As such, investors should consider Stabilis Solutions, Inc. as a sound investment opportunity with significant growth potential in the foreseeable future.