Summary
Cheniere Energy, Inc. (LNG) reported strong revenue growth in its second quarter of 2019, driven by increased LNG volumes from its operational liquefaction facilities. Total revenues reached $2.29 billion, a significant increase from $1.54 billion in the prior year period, reflecting the ramp-up of Train 5 at Sabine Pass and Train 1 at Corpus Christi. Despite the revenue growth, the company reported a net loss attributable to common stockholders of $114 million for the quarter, compared to a $18 million loss in the prior year period. This widened loss was primarily due to increased operating expenses, including higher depreciation and amortization, as well as unfavorable changes in derivative gains/losses and higher interest expenses. For the first six months of 2019, net income attributable to common stockholders was $27 million, a decrease from $339 million in the same period of 2018. This decline is attributed to similar factors as the quarterly results, including increased operational costs and financing expenses. The company's balance sheet shows a substantial increase in cash and cash equivalents to $2.28 billion, up from $0.98 billion at year-end 2018, reflecting strong financing activities. Despite the reported net loss for the quarter, the company's strategic focus on expanding its LNG infrastructure and securing long-term contracts positions it for future growth. The company also announced a new $1 billion share repurchase program, signaling confidence in its financial outlook.
Financial Highlights
50 data points| Revenue | $2.29B |
| Cost of Revenue | $1.28B |
| Gross Profit | $1.01B |
| R&D Expenses | $3.00M |
| SG&A Expenses | $77.00M |
| Operating Expenses | $1.86B |
| Operating Income | $432.00M |
| Interest Expense | $372.00M |
| Net Income | -$114.00M |
| EPS (Basic) | $-0.44 |
| EPS (Diluted) | $-0.44 |
| Shares Outstanding (Basic) | 257.40M |
| Shares Outstanding (Diluted) | 257.40M |
Key Highlights
- 1Total revenues increased significantly to $2.29 billion in Q2 2019 from $1.54 billion in Q2 2018, driven by higher LNG volumes from expanded operational capacity.
- 2Net loss attributable to common stockholders widened to $114 million ($0.44/share) in Q2 2019 from $18 million ($0.07/share) in Q2 2018, mainly due to increased operating costs and higher interest expenses.
- 3For the six months ended June 30, 2019, net income attributable to common stockholders decreased to $27 million from $339 million in the prior year period, largely due to increased operating and financing expenses.
- 4Cash and cash equivalents significantly increased to $2.28 billion as of June 30, 2019, from $0.98 billion as of December 31, 2018.
- 5The company announced a new three-year, $1 billion share repurchase program, indicating a commitment to returning capital to shareholders.
- 6Train 6 of the SPL Project received a positive Final Investment Decision (FID) and construction is underway, along with Train 2 of the CCL Project nearing commissioning and Train 3 under construction, pointing to future growth potential.
- 7Total long-term debt increased to $29.94 billion as of June 30, 2019, from $28.18 billion as of December 31, 2018, reflecting ongoing capital investments and financing activities.