Cheniere raises 2022 guidance as earnings surge

US LNG exporter Cheniere raised its 2022 financial guidance as it logged a surge in its earnings due to a strong LNG market.

Cheniere boosted 2022 consolidated adjusted Ebitda guidance to $7-$7.5 billion and distributable cash flow guidance to $4.3-$4.8 billion, it said on Thursday.

This is primarily due to the accelerated substantial completion of the sixth train at its Sabine Pass export plant in Louisiana, further improvement in LNG market margins across 2022, and the timing of delivery of certain LNG cargoes around year end 2021, Cheniere said.

Cheniere reported consolidated adjusted Ebitda of about $1.3 billion and $4.9 billion for the fourth quarter and 2021, a rise of 27 percent and 23 percent year-on-year respectively.

The company’s revenues surged 135 percent to $6.55 billion in the fourth quarter, and 70 percent to $15.86 billion in January-December.

However, it reported a wider net loss in 2021. Net loss increased $2.3 billion in 2021 and $1.1 billion for the fourth quarter when compared to 2020, Cheniere said.

The operator of the 30 mtpa Sabine Pass and the 15 mtpa Corpus Christi LNG terminals attributed the increase in 2021 net loss primarily to a rise in derivative losses from changes in fair value and settlements of $5.8 billion.

In addition, net loss also rose due to $969 million related to the non-recurrence of revenues recognized from canceled LNG cargoes during 2020, Cheniere said.

Cheniere exported in total 566 LNG cargoes last year, compared to 391 shipments in 2020.

“Defining year”

CEO Jack Fusco said, “2021 proved to be a defining year for Cheniere, marked by significant milestones across our business, including the realization of our initial 9-train platform across Sabine Pass and Corpus Christi, and the implementation of our comprehensive capital allocation plan.”

According to Fusco, the company’s 2021 financial results “are the product of a relentless focus on execution throughout the Cheniere organization and a fundamentally strong global LNG market.”

“LNG market strength provides significant long-term growth tailwinds for our business, reinforcing our confidence in a positive FID on Corpus Christi Stage 3 this year, and our excitement about our opportunities to leverage the platform for growth beyond Stage 3 in the future,” he said.

Cheniere just announced a new gas supply deal with compatriot EOG Resources for the proposed Stage 3 expansion at its Corpus Christi export plant in Texas.

The Corpus Christi liquefaction plant now consists of three operational trains with each having a capacity of about 5 mtpa.

Under the expansion project, Cheniere plans to build up to seven mid-scale liquefaction trains with a total expected nominal production capacity of about 10 mtpa.

In December, Cheniere asked US energy regulators for an extension to construct the proposed expansion at its Corpus Christi plant until June 2027.

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