Cheniere’s quarterly earnings surge, raises guidance

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

Cheniere boosted 2022 consolidated adjusted Ebitda guidance to $8.2-$8.7 billion and distributable cash flow guidance to $5.5-$6 billion, it said on Wednesday.

This is primarily due to increased volumes from maintenance optimization, the accelerated ramp-up of the sixth train at its Sabine Pass export plant in Louisiana, and general outperformance, Cheniere said.

Cheniere reported consolidated adjusted Ebitda of about $3.15 billion, a rise of 117 percent year-on-year.

Also, the company’s revenues surged 142 percent to $7.48 billion in the first quarter.

However, the firm reported a net loss of $865 million during the quarter, compared to a profit of $393 million last year.

The firm attributed this to an increase in derivative losses from changes in fair value and settlements of about $3.5 billion and a lower contribution from certain portfolio optimization activities.

About 75 percent of Q1 LNG cargoes landed in Europe

Cheniere exported in total 160 LNG cargoes, a record number of quarterly shipments, from its Sabine Pass and Corpus Christi facilities, compared to 133 cargoes in the first quarter of 2020.

About 75 percent of these cargoes landed in Europe due to high prices and as European countries look to slash reliance on Russian gas.

Its loaded LNG volumes reached 585 trillion British thermal unit (TBtu) in the January-March period, up 23 percent compared to the previous year.

“Today we are raising our 2022 financial guidance due to the sustained strength in the global LNG market and an increase in expected LNG production,” CEO Jack Fusco said.

He said the current volatility in the global energy markets signals the need for additional investment in new LNG capacity, underscoring the “power of the Cheniere platform”.

Fusco also touched upon the planned expansion at its Corpus Christi facility.

Under the expansion, Cheniere plans to add up to seven midscale trains, each with an expected liquefaction capacity of about 1.49 mtpa, with a total production capacity of more than 10 mtpa.

Becthel has already started early engineering, procurement and other site works under the limited notice to proceed.

“We expect to complete the remaining steps necessary to reach FID on Corpus Christi Stage 3 in the coming months,” he said.

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