Cheniere Reports Strong 1Q Gains
US LNG developer Cheniere Energy on May 4 reported 1Q 2018 net income of $357mn, up more than 500% from the comparable period last year. First quarter revenues rose 85% year-on-year, to $2.24bn.
The improvement was primarily due to income from additional operational trains at the Sabine Pass Liquefaction (SPL) project in Louisiana, the company said.
Cheniere delivered 30 cargos from SPL in the first quarter, representing more than 2mn metric tons of LNG. And by the end of April, it said, about 90 cargos had been produced, loaded and exported from SPL in 2018. The terminal has delivered more than 350 cargos to 26 countries and regions worldwide since it was commissioned in early 2016.
“Our record first quarter 2018 results are the product of a robust LNG market and superior execution throughout the company, and we are raising our full year 2018 guidance to reflect our year-to-date performance coupled with LNG market pricing that is stronger and more durable than we previously forecast,” Cheniere CEO Jack Fusco said.
Consolidated adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) was $907mn in the first quarter, up 88% year-on-year, and Cheniere’s new guidance calls for full-year Ebitda of between $2.3bn and $2.5bn in 2018.
Fusco also said progress continues to be made on the company’s Train 3 at the Corpus Christi Liquefaction Project (CCLP) in Texas, with positive FID expected “in the coming weeks.”
CCLP consists of up to three trains, each with a nominal capacity of 4.5mn metric tons/year (mt/yr) of LNG. Trains 1 and 2 are under construction, while Train 3 has been commercialised and is in the process of being financed, ahead of taking FID.
Cheniere is also developing up to seven mid-scale liquefaction trains adjacent to CCLP, each with a nominal production capacity of 1.4mn mt/yr of LNG. The regulatory process associated with those trains is currently underway, but no timeline for commercialisation or FID has been set.
At Sabine Pass, six trains are being developed, each with a nominal production capacity of 4.5mn mt/yr. Trains 1 through 4 are operational, Train 5 is under construction, while Train 6 is fully permitted and is being commercialised. Train 5 is expected to be substantially complete by the first half next year, and to deliver its first commercial cargo in the second half of 2019.