U.S.-based liquefied natural gas (LNG) firm New Fortress Energy disclosed on Tuesday that it had received a non-compliance notification from Nasdaq. The notice, which the company anticipated, stems from its failure to file the required quarterly report with the U.S. Securities and Exchange Commission (SEC), a key requirement for maintaining its stock market listing status. The delay has raised concerns over transparency and regulatory adherence among investors and market watchers.
The company had previously indicated it would miss the quarterly filing deadline, citing a combination of operational and personnel challenges. Specifically, the delay was attributed to complications in finalizing the sale of its Jamaican business, along with the recent resignation of its chief accounting officer. These disruptions have temporarily hindered its ability to compile and verify financial disclosures in line with regulatory standards.
According to Nasdaq rules, New Fortress Energy now has a 60-day window to present a formal compliance plan. If Nasdaq accepts this plan, the company will be granted until November 11—a full 180 days from the original deadline—to submit its Form 10-Q and regain compliance with listing standards. However, company representatives maintain confidence that the report will be filed well before this final cut-off date.
The financial instability facing New Fortress Energy is not a new development. Last year, the company began exploring restructuring options such as asset sales and seeking strategic partners. It also deferred dividends in an effort to preserve liquidity while negotiating with bondholders to push back debt maturities. These measures were part of a broader effort to stabilize the company’s financial footing amid mounting operational challenges.
A significant part of the company’s financial strain comes from its inability to secure long-term LNG supply agreements for its Latin American power projects. This challenge is compounded by the fact that New Fortress Energy lacks investment-grade credit, which restricts its ability to lock in favorable contract terms. As a result, it has been forced to purchase gas at elevated spot market prices, cutting into profitability and putting pressure on its cash flow.
Despite the regulatory setback, New Fortress Energy insists it remains committed to resolving the issue promptly and restoring investor confidence. The company is aiming to complete all outstanding filings swiftly while continuing its broader restructuring efforts. Whether these actions will be enough to stabilize its operations and reassure Nasdaq remains to be seen in the coming months.