Cheniere Energy (LNG) Earnings Surprise In Q1, Sales Jump
Zacks Investment Research | May 07, 2017 10:37PM ET
U.S. gas exporter Cheniere Energy Inc. (NYSE:LNG) reported strong first-quarter results amid the commencement of three of its units at Sabine Pass - North America’s first large-scale liquefied gas export facility. The 2.6 billion cubic feet per day Sabine Pass terminal in Cameron Parish, Louisiana opened in Feb 2016.
The company’s net income per share came in at 23 cents, contrary to the Zacks Consensus Estimate for a loss of 37 cents. The Mar quarter profitability was also an improvement over the year-ago period when Cheniere Energy reported a loss.
Revenues of $1,211 million dwarfed the Zacks Consensus Estimate of $811 million and the first-quarter 2016 sales of a mere $69 million. The top line surge led the company’s adjusted EBITDA to jump to $483 million compared to a loss of $45 million in the first quarter of 2016.
During the quarter, the company shipped 43 cargoes from Sabine Pass liquefied natural gas terminal in Louisiana, of which 7 were commissioning cargoes associated with Unit 3. Total volumes lifted in the Jan-Mar period were 154 trillion British thermal units.
Costs & Expenses
Overall costs and expenses soared 422% to $835 billion from the same quarter last year, mainly reflecting the commencement of operations at Sabine Pass liquefied natural gas terminal in Louisiana. Depreciation and amortization expense increased big time – from $24 million a year ago to $70 million now. However, SG&A costs fell 18 on the back of organizational changes and lower professional service fees.
Balance Sheet
As of Mar 31, 2017, Cheniere Energy had approximately $923 million in cash and cash equivalents and $24.1 billion in net long-term debt.
Guidance
Cheniere Energy reaffirmed its guidance for full-year 2017. While adjusted EBITDA is expected to be between $1.4 billion and $1.7 billion, distributable cash flow is likely to be between $500 million to $700 million ($2.10 to $2.80 per share).
Progress Report
Cheniere Energy achieved a significant milestone in the first quarter with the substantial completion of Train 3. Train 4 is likely to be placed in service during the second half of this year. Altogether, Cheniere Energy intends to construct seven production units - five at Sabine Pass and two at the liquefaction and export terminal in Corpus Christi, TX.
Cheniere Energy, Inc. Price, Consensus and EPS Surprise
Get The News You Want
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.