Cheniere slips to loss in third quarter

Houston-based LNG exporter Cheniere Energy slipped into the red during the quarter ending September 30.

The company reported a $318 million loss during the quarter under review, which compares to $65 million profit in the corresponding quarter of 2018.

For the first nine months of the year, the company reported a $291 million loss, which compares to $404 million profit in the corresponding period the previous year.

Net loss increased during the three months ended September 30, 2019 as compared to the comparable 2018 period primarily due to increased total operating costs and expenses primarily as a result of additional trains in operation and certain maintenance and related activities at the Sabine Pass liquefaction project, net losses from changes in fair value of commodity and foreign exchange derivatives, increased interest expense, increased net derivative loss related to interest rate derivatives, increased other expense primarily related to an impairment of our equity method investment in Midship Holdings, and decreased margins per MMBtu of LNG recognized in income primarily due to decreased pricing on LNG sold by our marketing affiliate.

This was partially offset by increased volumes of LNG recognized in income and decreased net income attributable to non-controlling interest.

During the three months ended September 30, 2019, 108 LNG cargoes were exported from Cheniere’s liquefaction projects, five of which were commissioning cargoes.

During the nine months ended September 30, 2019, 299 LNG cargoes were exported from Cheniere’s liquefaction projects, thirteen of which were commissioning cargoes.

Cheniere noted in its report that ten cargoes exported from its liquefaction projects and sold on a delivered basis were in transit as of September 30, 2019, none of which were commissioning cargoes.