US LNG export project developer Tellurian saw net losses widen in the first quarter of this year to $40.7 million.
This compares to a net loss of $34.1 million in the January-March period of 2019.
Tellurian attributed the widening of its net loss to rise in costs of sales, expenses, and reorganization charges.
The company is implementing a cost reduction and reorganization plan. It incurred about $5.5 million of charges due to a reduction in workforce.
The plan has been implemented due to the sharp decline in oil and natural gas prices. But it was also due to the growing negative economic effects of the Covid-19 coronavirus pandemic
The LNG company raised $50 million through issuance of $56 million unsecured notes in a push to build cash reserves during the uncertain environment caused by the pandemic.
Tellurian chief executive Meg Gentle said the company has taken actions to strengthen its balance sheet in the “midst of extreme energy and financial market conditions”.
“We are lean, resolved, and focused on delivering our first project, Driftwood LNG,” Gentle said.
Tellurian expects the total cost of its Driftwood LNG export project in Louisiana to be about $28.9 billion.
The proposed Driftwood terminal will have a liquefaction capacity of approximately 27.6 million tonnes per year.