Summary
Cheniere Energy, Inc. reported its financial results for the second quarter and first half of 2017, highlighting significant operational progress and substantial growth in LNG revenues. The company continued to advance its Sabine Pass LNG (SPL) and Corpus Christi LNG (CCL) projects, with multiple liquefaction trains in various stages of operation, construction, or commissioning. This operational expansion directly translated into a dramatic increase in LNG revenues, which surged by over tenfold year-over-year in the second quarter, reflecting increased volumes and higher pricing. Financially, Cheniere generated positive operating cash flows in the first half of 2017, a marked improvement from the prior year's cash outflow, driven by higher LNG sales. The company also successfully raised significant capital through debt issuances to fund its ongoing capital expenditure programs. Despite substantial ongoing investments in property, plant, and equipment, the company managed its liquidity, demonstrating progress towards commercial operation and revenue generation for its key infrastructure projects.
Financial Highlights
48 data points| Revenue | $1.24B |
| Cost of Revenue | $692.00M |
| Gross Profit | $549.00M |
| R&D Expenses | $1.00M |
| SG&A Expenses | $61.00M |
| Operating Expenses | $967.00M |
| Operating Income | $274.00M |
| Interest Expense | $188.00M |
| Net Income | -$285.00M |
| EPS (Basic) | $-1.23 |
| EPS (Diluted) | $-1.23 |
| Shares Outstanding (Basic) | 232.50M |
| Shares Outstanding (Diluted) | 232.50M |
Key Highlights
- 1Revenue Growth: Total revenues increased significantly to $1,241 million in Q2 2017 from $177 million in Q2 2016, driven by a substantial ramp-up in LNG revenues.
- 2Operational Milestones: Train 3 at the Sabine Pass LNG (SPL) Project achieved substantial completion and commenced operations in March 2017. Train 4 at SPL began commissioning in March 2017, with first LNG achieved in July 2017.
- 3Capital Raising: The company successfully issued $800 million in 2037 SPL Senior Notes and $1.35 billion in 2028 SPL Senior Notes, and $1.5 billion in 2027 CCH Senior Notes, bolstering liquidity for project development.
- 4Improved Operating Cash Flow: Net cash provided by operating activities was $536 million for the first six months of 2017, a significant improvement from a net cash used of $295 million in the same period of 2016.
- 5Reduced Net Loss: Consolidated net loss attributable to common stockholders narrowed to $231 million for the first six months of 2017, from $619 million in the prior year's comparable period, reflecting improved operational performance and revenue generation.
- 6Project Development: Construction continues on Train 5 of the SPL Project and Stages 1 (Trains 1 & 2) of the Corpus Christi LNG (CCL) Project.
- 7Investment in Midship Pipeline: Cheniere made an equity investment in Midship Pipeline Company, LLC, supporting a natural gas pipeline project connecting Anadarko Basin production to Gulf Coast markets.