Cheniere’s Q2 earnings jump, raises guidance again

US LNG exporting giant Cheniere has again raised its 2022 financial guidance as it reported a surge in its second-quarter earnings due to a strong LNG market.

Cheniere boosted 2022 consolidated adjusted Ebitda guidance to $9.8-$10.3 billion and distributable cash flow guidance to $6.9 – $7.4 billion, it said on Thursday.

This is due to primarily to the expected proceeds from the early termination of the Sabine Pass LNG terminal use agreement with Chevron, and sustained higher margins on LNG throughout 2022, Cheniere said.

Cheniere reported consolidated adjusted Ebitda of $2.5 billion and $5.7 billion for the three and six months ended June 30, 2022, respectively.

This marked a rise of 147 percent and 130 percent, respectively, primarily due to increased margins per MMBtu of LNG and to a lesser extent from increased volumes of LNG delivered, it said.

Also, the company’s net income reached $741 million in the second quarter, compared to a net loss of $323 million last year.

Revenues surged 165 percent year-on-year to $8 billion in the second quarter.

Cheniere shipped 156 LNG cargoes from its Sabine Pass and Corpus Christi terminals in the second quarter and 316 in the first half, up by 12 percent and 16 percent, respectively.

About 70 percent of these shipments landed in Europe due to high prices and as European countries look to slash reliance on Russian gas.

Cheniere’s loaded LNG volumes reached 564 trillion British thermal unit (TBtu) in the April-June period, up 13 percent compared to the previous year.

Since March 31, 2022, Cheniere and its subsidiaries signed new long-term contracts representing an aggregate of approximately 140 million tonnes of LNG through 2050, the firm said.

These include deals with Posco, Equinor, Chevron, PetroChina, and PTT.

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