Summary
Cheniere Energy, Inc. (LNG) reported its third-quarter 2013 financial results, showing continued significant investment in its Sabine Pass Liquefaction Project. While total revenues remained relatively stable year-over-year, the company incurred a substantial net loss, largely due to increased general and administrative expenses, derivative losses, and higher LNG terminal operating costs. The balance sheet reflects a significant increase in property, plant, and equipment, as well as a substantial rise in long-term debt, primarily to finance the ongoing construction of liquefaction trains. Financially, the company's focus is on securing and deploying capital for its ambitious liquefaction project. This period saw substantial debt issuances, including $2.0 billion in Senior Secured Notes due 2021 and $1.0 billion due 2023, alongside the closing of $5.9 billion in credit facilities for the first four liquefaction trains. Despite these efforts, the company continues to operate at a loss, with significant cash used in investing activities for project development, offset by strong proceeds from debt and equity financings. Investors should monitor the progress of the liquefaction project construction and the company's ability to secure future revenue streams through long-term SPAs.
Financial Highlights
52 data points| Revenue | $67.71M |
| R&D Expenses | $11.05M |
| Operating Expenses | $113.59M |
| Operating Income | -$45.88M |
| Interest Expense | $52.53M |
| Net Income | -$100.82M |
| EPS (Basic) | $-0.46 |
| EPS (Diluted) | $220734000.00 |
| Shares Outstanding (Basic) | 220.73M |
| Shares Outstanding (Diluted) | 220.73M |
Key Highlights
- 1Net loss attributable to common stockholders was $100.8 million for the three months ended September 30, 2013, compared to $109.0 million in the prior year period.
- 2Total assets significantly increased to $8.13 billion from $4.64 billion at the end of 2012, primarily driven by the growth in property, plant, and equipment related to the Liquefaction Project.
- 3Long-term debt more than doubled to $5.57 billion from $2.17 billion at the end of 2012, reflecting substantial debt issuances to finance project development.
- 4The company capitalized $125.0 million of interest expense during the first nine months of 2013 related to the construction of the Liquefaction Project.
- 5Significant financing activities occurred, including $2.0 billion and $1.0 billion in Senior Secured Notes for Sabine Pass Liquefaction, and $5.9 billion in 2013 Liquefaction Credit Facilities.
- 6Progress on the Liquefaction Project: Train 1 and 2 were approximately 45% complete, and Train 3 and 4 were approximately 10% complete as of September 30, 2013, both ahead of schedule.