Cheniere Energy Posts Strong 2Q17 Results, Increases Guidance
Cheniere Energy’s 2Q17 revenue
Cheniere Energy (LNG) and its subsidiaries Cheniere Energy Partners (CQP) and Cheniere Energy Partners LP Holdings (CQH) reported their 2Q17 earnings on August 8, 2017. Cheniere Energy’s 2Q17 revenue rose to $1.2 billion from $176.8 million in 2Q16. It beat its revenue estimate by 37.8%.
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The YoY (year-over-year) rise in Cheniere Energy’s 2Q17 revenue is due to the commencement of LNG (liquefied natural gas) exports from Trains 1, 2, and 3 of the SPL (Sabine Pass Liquefaction) facility. Cheniere Energy exported 48 cargoes in 2Q17; all of them were operational cargoes. Total LNG volume lifted in 2Q17 was 170.0 TBtu (trillion British thermal units). The company has exported 160 cargoes through July 2017. It has exported LNG to 24 of the 40 importing countries in the world.
Cheniere Energy’s 2Q17 EBITDA
Cheniere Energy’s 2Q17 adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose to $371.0 million compared to -$4.0 million in 2Q16. The YoY change in its EBITDA was mainly driven by an increase in LNG exports over the recent quarters.
The company also increased its 2017 guidance, driven by a strong first half of the year and the early placement of projects. Cheniere Energy now expects its 2017 adjusted EBITDA to be between $1.6 billion and $1.8 billion and its distributable cash flow to be between $0.50 billion and $0.70 billion.
Cheniere Energy’s project update
Cheniere Energy plans to complete seven LNG trains, including five at Sabine Pass and two at Corpus Christi, by the end of 2019. The company began commissioning Train 4 in July 2017 and is expecting its substantial completion in the second half of 2017. The first DFCD (date of ﬁrst commercial delivery) from Train 4 is expected in the first half of 2018. Cheniere recently achieved DFCD for Train 3 by exporting the first LNG cargo to KOGAS (Korea Gas) under a 20-year SPA (sale and purchase agreement).