Summary
Cheniere Energy, Inc. (LNG) reported a net loss of $73.0 million for the three months ended June 30, 2012, an increase from the $47.2 million net loss in the prior year's comparable period. This deterioration in earnings was primarily driven by a significant loss on the early extinguishment of debt, higher LNG terminal and pipeline development expenses, and decreased marketing and trading revenues. Despite the increased net loss, the company made substantial progress in its strategic initiatives, including significant debt repayments and securing financing for its liquefaction project. Financially, the company's balance sheet shows total assets of $3.03 billion, with total liabilities of $2.52 billion. A key event subsequent to the quarter was the repayment of the Convertible Senior Unsecured Notes and the successful closing of $3.6 billion in debt financing for its liquefaction facilities. The company also raised substantial capital through common stock offerings. While operational losses persisted, the strategic moves indicate a strong focus on de-risking the balance sheet and advancing its large-scale LNG export projects.
Financial Highlights
50 data points| Revenue | $62.33M |
| R&D Expenses | $21.09M |
| Operating Expenses | $68.45M |
| Operating Income | -$6.12M |
| Interest Expense | $55.86M |
| Net Income | -$73.04M |
| EPS (Basic) | $-0.43 |
| EPS (Diluted) | $171001000.00 |
| Shares Outstanding (Basic) | 171.00M |
| Shares Outstanding (Diluted) | 171.00M |
Key Highlights
- 1Net loss for the quarter increased to $73.0 million compared to $47.2 million in the prior year, largely due to a $14.6 million loss on early extinguishment of debt.
- 2Significant progress was made in repaying debt, including the full repayment of the 2007 Term Loan and the 2008 Loans, totaling over $300 million in principal and interest.
- 3The company raised substantial capital through equity offerings, including $351.9 million in March 2012 and $468.1 million in May 2012 from stock purchases.
- 4A major development was the closing of $3.6 billion in debt financing in July 2012 for the first two LNG trains of the liquefaction facilities at Sabine Pass.
- 5The company announced a positive final investment decision for the development and construction of the first two LNG trains at Sabine Pass, subject to financing and equity investments.
- 6Total assets grew to $3.03 billion, while long-term debt remained substantial at $2.19 billion (net of discount).
- 7Revenue from LNG terminal operations was $66.1 million, while marketing and trading revenues experienced a loss of $4.0 million for the quarter.