Source: Houston Chronicle


Houston liquefied natural gas company Cheniere Energy posted a $318 million loss during the third quarter amid higher operating expenses, depreciation of assets and interest payments.

Cheniere Energy posts $318 million loss amid higher expenses-oag360

Source: Houston Chronicle

In an early Friday morning filing with the U.S. Securities and Exchange Commission, Cheniere reported posting a $318 million loss on nearly $2.2 billion of revenue during the third quarter. The figures were mixed compared to the $65 million profit on nearly $1.8 billion of revenue during the third quarter of 2018.

This quarter’s figures translated into a loss per share of $1.25 for stockholders, which were down compared to the earnings per share of 26 cents during the same time period last year.

Cheniere hit Wall Street expectations of $2.2 billion of revenue but missed expectations for earnings per share of 32 cents.

During the third quarter, Cheniere saw a nearly one-third drop in LNG export volumes year-over-year but higher prices allowed the company to earn more revenue from the shipments.

Cheniere’s third quarter LNG revenue of $2.1 billion was 23 percent higher than the $1.7 billion of LNG revenue during the same time period last year.

Meanwhile, the company reported $308 million in operating expenses, an 81 percent increase from the $170 million during the third quarter of 2018. Cheniere reported that it brought the second production unit at its Corpus Christi LNG export terminal into service in August, which accounted some some of that increase.

Third quarter expenses for depreciation and amortization grew from $113 million in 2018 to $213 million in 2019.

Cheniere also paid $395 million of interest during the third quarter, a 78 percent increase over the $221 million during third quarter of 2018.

Cheniere’s earnings report comes at time when the liquefied natural gas industry is undergoing a tremendous expansion along the U.S. Gulf Coast.

There are now five LNG export terminals in operation across the United States and Cheniere owns two of them – Sabine Pass LNG in Cameron Parish, La., and Corpus Christi LNG in Texas.

Cheniere became the first LNG exporter in the Lower 48 states with a February 2016 shipment from its Sabine Pass LNG export terminal. The company reported that it has sent out 850 export cargoes carrying 60 million tons of LNG since that time.

Founded in 1996 and headquartered in Houston, Cheniere Energy employs nearly 1,400 people.

The company closed 2018 with a $471 million profit on $8.0 billion of revenue.


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