Summary
Cheniere Energy, Inc. (LNG) reported a net loss of $53.9 million for the third quarter of 2011, an increase from the $40.6 million loss in the same period last year. This widened loss was primarily driven by increased development expenses related to the liquefaction project at the Sabine Pass LNG terminal and a decrease in marketing and trading revenues. Despite the quarterly loss, the company reported positive developments in its liquefaction project, including a significant LNG sale and purchase agreement with BG Gulf Coast LNG, LLC and authorization from the Department of Energy to export LNG to countries with import capacity. The company also raised capital through a public offering of its common stock and common units by Cheniere Partners, strengthening its liquidity position. Financially, Cheniere's balance sheet shows total assets of $2.65 billion and a total deficit of $446.9 million as of September 30, 2011. A significant portion of its liabilities are long-term debt, totaling approximately $2.47 billion. The company is actively managing its debt, having reclassified substantial amounts to current liabilities due to upcoming maturities in 2012, and is exploring options for refinancing or retiring this debt. Management expressed confidence in its ability to meet its obligations through existing cash, operations, and access to capital markets.
Financial Highlights
52 data points| Revenue | $65.81M |
| R&D Expenses | $11.14M |
| Operating Expenses | $55.46M |
| Operating Income | $10.36M |
| Interest Expense | $65.13M |
| Net Income | -$53.94M |
| EPS (Basic) | $-0.67 |
| EPS (Diluted) | $-0.67 |
| Shares Outstanding (Basic) | 80.47M |
| Shares Outstanding (Diluted) | 80.47M |
Key Highlights
- 1Net loss for Q3 2011 was $53.9 million, compared to a $40.6 million loss in Q3 2010, primarily due to increased development expenses and lower marketing/trading revenues.
- 2Secured a significant LNG Sale and Purchase Agreement (SPA) with BG Gulf Coast LNG, LLC for 182.5 million MMBtu per year (approximately 3.5 mtpa) for 20 years, commencing upon first delivery.
- 3Received authorization from the U.S. Department of Energy (DOE) to export domestically produced natural gas as LNG to any country with import capabilities.
- 4Raised approximately $123.1 million in net cash proceeds from a public offering of common stock in June 2011 and approximately $60 million from Cheniere Partners' sale of common units in September 2011.
- 5Reclassified $298.0 million (2007 Term Loan) and $190.7 million (Convertible Senior Unsecured Notes) of debt from long-term to current liabilities due to upcoming maturities in 2012, highlighting near-term debt management needs.
- 6Total assets stood at $2.65 billion, with total liabilities and deficit at $2.65 billion, indicating a substantial debt load relative to equity.
- 7The company is actively developing its liquefaction project at the Sabine Pass LNG terminal, estimating construction costs of $4.5 billion to $5.0 billion for the first two LNG trains.