Summary
Cheniere Energy, Inc. (LNG) reported its first quarter 2019 financial results, showing a decrease in net income attributable to common stockholders to $141 million from $357 million in the prior year's quarter. This decline was primarily driven by lower margins per MMBtu due to decreased LNG pricing and higher cost of sales, increased operating and maintenance expenses, higher derivative losses, and elevated interest expenses. Despite the dip in profitability, the company made significant operational progress, achieving substantial completion of Train 5 at the Sabine Pass LNG (SPL) Project and Train 1 at the Corpus Christi LNG (CCL) Project, both commencing operations. This expansion contributed to an increase in LNG revenues, though offset by lower per-unit pricing. The company also highlighted substantial progress in its liquidity position and capital resources, with strong available commitments under various credit facilities and significant long-term LNG sales agreements in place, providing a solid foundation for future growth as additional liquefaction trains come online.
Financial Highlights
50 data points| Revenue | $2.26B |
| Cost of Revenue | $1.20B |
| Gross Profit | $1.06B |
| R&D Expenses | $1.00M |
| SG&A Expenses | $73.00M |
| Operating Expenses | $1.66B |
| Operating Income | $606.00M |
| Interest Expense | $247.00M |
| Net Income | $141.00M |
| EPS (Basic) | $0.55 |
| EPS (Diluted) | $0.54 |
| Shares Outstanding (Basic) | 257.10M |
| Shares Outstanding (Diluted) | 258.50M |
Key Highlights
- 1Net income attributable to common stockholders decreased to $141 million from $357 million year-over-year, primarily due to lower LNG margins and increased operating and interest expenses.
- 2Revenues saw a slight increase to $2.261 billion from $2.242 billion, driven by higher volumes from newly operational LNG trains, partially offset by lower per-unit pricing.
- 3Significant operational milestones achieved include substantial completion and commencement of operations for Train 5 of the SPL Project and Train 1 of the CCL Project.
- 4Total operating costs and expenses increased by $160 million to $1.655 billion, mainly due to increased operating and maintenance expenses related to expanded operations and higher depreciation.
- 5Interest expense, net of capitalized interest, increased by $31 million to $247 million, driven by higher outstanding debt and less interest capitalized due to completed construction phases.
- 6The company ended the quarter with $1.093 billion in cash and cash equivalents and $3.011 billion in total cash, cash equivalents, and restricted cash.
- 7Significant future revenue is secured, with $108.8 billion in unsatisfied transaction price for future performance obligations, primarily from LNG revenues over an 11-year weighted average recognition period.