Cheniere reports loss
Cheniere Energy Partners reported a net loss of $226.2 million and $296.0 million for the three and six months ended June 30, 2014, compared to a net loss of $47.0 million and $98.7 million for the same periods in 2013, respectively.
Significant items for the three and six months ended June 30, 2014 were a loss of $178.5 million and $216.9 million, compared to a gain of $11.1 million and a loss of $10.3 million for the comparable 2013 periods, respectively. Significant items for the three and six months ended June 30, 2014 related to development expenses, loss on early extinguishment of debt, and derivative losses.
Development expenses were primarily for the liquefaction facilities the company is developing through Sabine Pass Liquefaction at the Sabine Pass LNG terminal adjacent to the existing regasification facilities. Loss on early extinguishment of debt was related to Sabine Pass Liquefaction’s write-off of debt issuance costs in connection with the early extinguishment of $2.1 billion under Sabine Pass Liquefaction’s four credit facilities.
General and administrative expense (including affiliate) decreased by $11.4 million and $7.8 million for the three and six months ended June 30, 2014, compared to the corresponding 2013 periods, respectively, primarily due to costs incurred under certain management service agreements with wholly owned subsidiaries of Cheniere Energy, Inc.
Sabine Pass Liquefaction and Cheniere Creole Trail Pipeline, L.P. are required to pay monthly fees to an affiliate of Cheniere based upon the capital expenditures incurred in the previous month for construction of Trains 1 through 4 of the Liquefaction Project and construction of certain modifications to the Creole Trail pipeline, respectively.
Press Release, August 1, 2014; Image: Cheniere