Summary
Cheniere Energy, Inc. (LNG) reported a net loss of $109.0 million for the third quarter of 2012, an increase from the $53.9 million net loss in the same period of 2011. This widened loss was primarily driven by higher general and administrative expenses, significantly impacted by the vesting of long-term commercial bonus pool awards. Despite increased development expenses related to the Liquefaction Project and a loss on early debt extinguishment, the company saw a reduction in interest expenses due to deleveraging efforts. Financially, the company significantly improved its liquidity and balance sheet. During the first nine months of 2012, Cheniere Energy raised substantial capital through equity offerings, totaling approximately $1.2 billion, and also secured a $3.6 billion Liquefaction Credit Facility. These actions were instrumental in repaying or converting all outstanding debt (excluding Cheniere Partners' debt) and provided funds to invest in the crucial Liquefaction Project. The company's asset base grew substantially, primarily due to significant capital expenditures on property, plant, and equipment, particularly for the Liquefaction Project.
Financial Highlights
50 data points| Revenue | $66.00M |
| R&D Expenses | $11.72M |
| Operating Expenses | $120.52M |
| Operating Income | -$54.52M |
| Interest Expense | $45.50M |
| Net Income | -$109.00M |
| EPS (Basic) | $-0.52 |
| EPS (Diluted) | $208712000.00 |
| Shares Outstanding (Basic) | 208.71M |
| Shares Outstanding (Diluted) | 208.71M |
Key Highlights
- 1Net loss for Q3 2012 increased to $109.0 million ($0.52/share) from $53.9 million ($0.67/share) in Q3 2011, mainly due to higher General and Administrative (G&A) expenses.
- 2Significant capital raises of approximately $1.2 billion from equity offerings and a $3.6 billion Liquefaction Credit Facility were secured in the first nine months of 2012.
- 3The company repaid or converted all of its debt (excluding Cheniere Partners' debt) during the first nine months of 2012, including the 2007 Term Loan, 2008 Loans, and Convertible Senior Unsecured Notes.
- 4Capital expenditures were substantial, with $871.2 million invested in LNG trains 1 and 2 of the Liquefaction Project during the first nine months of 2012.
- 5Total assets grew significantly to $4.38 billion as of September 30, 2012, from $2.91 billion as of December 31, 2011, driven by investments in property, plant, and equipment.
- 6Substantial non-controlling interest of $1.27 billion exists, largely due to Blackstone's investment in Class B Units of Cheniere Partners.
- 7The company is actively developing its Liquefaction Project, with LNG trains 1 and 2 expected to commence operations in late 2015.