Cheniere’s adjusted profit, revenue more than double on soaring LNG demand

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The top U.S. exporter of LNG said it took a $2.2 billion loss on derivatives and recognized a $5 billion change in the value of long-term gas contracts. Shares fell more than 2% in early trading to $174.75.

It reported a net loss of $2.39 billion for the quarter ended Sept.30, up from a loss of $1.08 billion in the same quarter a year ago.

Revenue rose to $8.85 billion for the three months, from $3.20 billion a year earlier, on higher volumes and prices for its LNG.

Its LNG volumes increased by 12% during the third quarter versus a year earlier, and its number of cargoes shipped rose by 11% to 156, the company said.

Its outlook for 2022 consolidated adjusted profit remains at up to $11.5 billion and full year 2022 distributable cash flow at up to $8.6 billion, each of which were increased by about $1.2 billion in September.

Cheniere owns liquefaction terminals capable of producing about 45 million tonnes per annum (MTPA) of LNG at Sabine Pass in Louisiana and Corpus Christi in Texas.

The company is adding seven mid-scale liquefaction trains at Corpus Christi, which it calls the Stage 3 project, which will have a production capacity of over 10 MTPA of LNG.

“We look forward to … bringing much-needed new LNG supply to the market from Corpus Christi Stage 3 beginning in late 2025,” Cheniere CEO Jack Fusco said in a news release.

In addition, Cheniere also is developing two additional liquefaction trains at that facility that could produce another 3 MTPA.