Stabilis Solutions, Inc. (NASDAQ:SLNG) Q2 2023 Earnings Call Transcript

Barry Haimes: Thanks so much for taking my questions and apologize if I missed something earlier. My line was going in and out, I had to redial in. But I had a couple questions. One is I don’t think I heard you guys talk about the space market. Could you give an update on how that’s been in the quarter and what the outlook is for the year? And then second question is in terms of the export license, any plans to take advantage of that? Where does that stand? Thank you.

Westy Ballard: Yes, no, thank you. Good morning. The space business is incredibly exciting from our perspective. We’ve been servicing that market since early 2018, and it’s a relevant element of kind of the way we think about things. I’ll say this, it’s really got a similar complexion to our industrial business though, meaning, and it’s a fairly lumpy business right now. It’s a lot of fits and starts and stops. And so until there’s more consistency and longer-term contracts, it’s a challenge to really think more strategically about. But it’s certainly, it’s relevant. It’s exciting. I think over the ensuing years, you’ll have a much larger and broader audience of customer right now. There’s kind of a one large consumer of our goods and our LNG we think that changes.

I don’t think that changes today, but it does change as others come online and they’re rocket and programs come online as satellites continue to get more and more robust and launched in a space. And so it’s a great business. We’re excited about it. It’s just going to be lumpy and choppy and it’s very similar to kind of our industrial business now. I think moving forward, the other question was in and around, what was the other question? Excuse me?

Barry Haimes: The export license?

Westy Ballard: Yes, export, excuse me. That’s also we are very bullish on that. We think the structural elements of supply and demand, certainly in the European continent are real. It didn’t really materialize last year because you saw a massive build of inventories, and then this winter was a fairly mild winter in Europe. We don’t think that mild nature of weather in Europe is sustainable. Ultimately, it’s going to get chilly again in Eastern Europe and the drawdowns and those inventory levels will happen. It’s hard to predict when but we have spent a lot of time interacting with offtake to take our molecules and third-party molecules that we can source pretty seamlessly to fill that market. We’d like to get two, three year kind of contracts on that.

It’s just, I think you’ve got some gun shy offtake right now, given, as I mentioned, the full tanks in Europe and really kind of the expectations or lack thereof of cold winter again. So it’s a kind of wait and see. But the punchline here is we are incredibly bullish on that aspect of our business when and how it materializes is still developing.

Barry Haimes: Got it. And then one last question. I didn’t catch what was the equipment that you bought related to the new train and if you talked about either what was the cost of that and what the all-in costs would be of this next train? Thanks.