Cheniere turns to profit, ups guidance
Houston-based LNG exporter Cheniere Energy reported a $65 million profit for the third quarter of the year, as more production volumes come online.
The company swung to a profit in the third quarter after reporting a $289 million loss in the corresponding quarter last year.
In the first nine months of the year, the company reported a net income of $404 million which compares to $520 million loss in 2017, Cheniere said in its quarterly report.
During the three and nine months ended September 30, 2018, 65 and 193 LNG cargoes, respectively, were exported from the Sabine Pass LNG project, none of which were commissioning cargoes. One cargo exported from the project, sold on a delivered basis, was in transit as of September 30, 2018.
The financial results have prompted the company to raise its consolidated adjusted EBITDA and distributable cash flow guidance from $2.45 billion to $2.55 billion and $0.5 billion to $0.6 billion, respectively, for the year 2018.
For the year 2019, Cheniere raised its consolidated adjusted EBITDA guidance from $2.9 billion to $3.2 billion and its distributable cash flow guidance from $0.6 to $0.8 billion.
Jack Fusco, Cheniere’s president and CEO, speaking of the results said, “Our commercial momentum continues, with SPAs recently completed with CPC and Vitol, and today we’re pleased to announce a long-term SPA with PGNiG.“
He further added, “As we look forward to 2019, we expect to build upon our reputation of superior execution by placing Corpus Christi Trains 1 and 2 and Sabine Pass Train 5 into service.”
Cheniere said production of liquefied natural gas from Sabine Pass Train 5 was already achieved in October. The Train is currently undergoing commissioning while the 6th Train is being commercialized and has all necessary approvals in place.
The company is also developing the Corpus Christi facility in Texas where the first liquefaction Train is undergoing commissioning and the remaining two Trains are under construction.