Summary
Cheniere Energy, Inc. (LNG) reported a significant net loss of $865 million for the first quarter of 2022, a substantial decrease from the $393 million net income in the prior year's quarter. This loss was primarily driven by a sharp increase in derivative losses, amounting to $3.5 billion (pre-tax), largely due to the appreciation of international LNG commodity curves. Despite the reported net loss, total revenues saw a substantial increase to $7.48 billion from $3.09 billion in Q1 2021, driven by higher LNG prices and increased delivery volumes, including contributions from new liquefaction trains. Operationally, the company achieved substantial completion of Train 6 at the Sabine Pass LNG Terminal in February 2022, boosting its total production capacity. Financially, Cheniere used $1.1 billion of cash to reduce outstanding indebtedness, including early redemption of convertible notes, and continued its share repurchase program and dividend payments. The company maintained a strong liquidity position with $6.66 billion in available liquidity as of March 31, 2022, and reported compliance with all debt covenants.
Financial Highlights
52 data points| Revenue | $7.48B |
| R&D Expenses | $5.00M |
| SG&A Expenses | $96.00M |
| Operating Expenses | $8.10B |
| Operating Income | -$613.00M |
| Interest Expense | $349.00M |
| Net Income | -$865.00M |
| EPS (Basic) | $-3.41 |
| EPS (Diluted) | $-3.41 |
| Shares Outstanding (Basic) | 254.00M |
| Shares Outstanding (Diluted) | 254.00M |
Key Highlights
- 1Reported a net loss of $865 million for Q1 2022, a significant decline from a net income of $393 million in Q1 2021, largely due to $3.5 billion in derivative losses.
- 2Total revenues increased significantly to $7.48 billion in Q1 2022 from $3.09 billion in Q1 2021, driven by higher LNG prices and increased volumes.
- 3Achieved substantial completion of Train 6 at the Sabine Pass LNG Terminal in February 2022, increasing total production capacity.
- 4Used $1.1 billion of cash for debt reduction, including the early redemption of convertible notes.
- 5Maintained a robust liquidity position with $6.66 billion in available liquidity as of March 31, 2022.
- 6Repurchased $25 million of common stock and paid a quarterly dividend of $0.33 per share.
- 7Corpus Christi Stage 3 project advanced with an EPC contract signed with Bechtel in March 2022.