Cheniere Posts Surprise Loss on Natural Gas Derivatives
(Bloomberg) -- Cheniere Energy Inc., the largest U.S. liquefied natural gas exporter, increased its full-year profit forecast on higher output and growing global demand for shipments of the super-chilled fuel.
The Houston-based company said that earnings before interest, taxes, depreciation, and amortization will be as much as $8.7 billion, compared with a previous view of up to $7.5 billion, and well ahead of analysts' estimates compiled by Bloomberg. The shares rose as much as 6.8% in New York trading.
The U.S. LNG industry is enjoying a lift in demand as Europe is seeking to diversify its energy supplies away from Russia. The U.S., which was a net LNG importer less than a decade ago, sent a record number of ships to supply fuel overseas last year and is expected to have the world's largest export capacity by the end of 2022.
“The current volatility in the global energy markets signals the need for additional investment in new LNG capacity,” Chief Executive Officer Jack Fusco said in a statement.
Cheniere sent a record 160 cargoes during the first quarter, with 75% of them landing in Europe, the company said in an investor presentation. The company is an active participant in the U.S.-European Union task force on energy security, Fusco said in an investors call.
The EU's plan to replace Russian gas imports, combined with growth in demand from Asia will lead to tight and potentially volatile natural gas market in the near term, the company said.
“The demand for our flexible and reliable LNG on a long-term basis has only been amplified this year, given the outlook for continued market volatility,” Anatol Feygin, the company's executive vice president, told analysts during the earnings call.
Cheniere reported a net loss of $3.41 per share, while analysts expected earnings of $3.51 per share. The company said increased margins on delivered LNG and a higher volume of LNG delivered during the quarter weren't sufficient to offset the loss on natural gas derivatives.
©2022 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
