Summary
Cheniere Energy, Inc.'s Q1 2015 report shows a significant increase in net loss compared to the prior year, largely due to increased derivative losses, early debt extinguishment charges, and higher interest expenses. The company continues to invest heavily in property, plant, and equipment, particularly for the construction of its liquefaction trains at the Sabine Pass (SPL) and Corpus Christi (CCL) projects. Despite the reported net loss, the company ended the quarter with a substantial cash balance and has secured significant financing through the issuance of new debt and convertible notes. Key financial developments include a substantial increase in long-term debt to fund ongoing construction projects, particularly the issuance of $2.0 billion in 2025 SPL Senior Notes and $625.0 million in 2045 Convertible Senior Notes. The company also experienced a large loss on early debt extinguishment related to the termination of commitments under its 2013 Liquefaction Credit Facilities. Investors should note the ongoing capital expenditures and the company's reliance on debt financing to fund its ambitious growth plans, while also monitoring the progress and commencement of commercial operations for its liquefaction facilities.
Financial Highlights
51 data points| Revenue | $68.37M |
| Cost of Revenue | $693K |
| Gross Profit | $67.68M |
| R&D Expenses | $16.10M |
| Operating Expenses | $128.61M |
| Operating Income | -$60.24M |
| Interest Expense | $59.61M |
| Net Income | -$267.71M |
| EPS (Basic) | $-1.18 |
| Shares Outstanding (Basic) | 226.33M |
| Shares Outstanding (Diluted) | 226.33M |
Key Highlights
- 1Net loss attributable to common stockholders significantly increased to $(267.7) million for Q1 2015, from $(97.8) million in Q1 2014.
- 2Total assets grew to $14.9 billion as of March 31, 2015, up from $12.6 billion at the end of 2014, driven by continued investment in property, plant, and equipment.
- 3Long-term debt increased substantially to $12.1 billion net as of March 31, 2015, reflecting significant debt issuances during the quarter, including $2.0 billion in 2025 SPL Senior Notes and $625.0 million in 2045 Convertible Senior Notes.
- 4Cash and cash equivalents increased to $2.2 billion as of March 31, 2015, from $1.7 billion at the end of 2014, boosted by debt issuances.
- 5Operating cash flow remained negative, with a cash outflow of $14.2 million for Q1 2015, compared to $18.2 million in Q1 2014.
- 6A loss of $89.0 million on early extinguishment of debt was recorded due to the termination of commitments under the 2013 Liquefaction Credit Facilities.
- 7Construction continues on the Sabine Pass Liquefaction (SPL) Project, with Trains 1-4 nearing completion, and significant progress and authorization for Trains 5 and 6.