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Cheniere Energy’s Earnings Turned Positive in 3Q16

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Nov. 4 2016, Published 5:20 p.m. ET

Cheniere Energy’s 3Q16 revenue

Cheniere Energy (LNG) and its MLP subsidiaries, Cheniere Energy Partners (CQP) and Cheniere Energy Partners Holdings (CQH), reported their 3Q16 earnings on November 3, 2016. Cheniere Energy’s 3Q16 revenue increased to $465.7 million from $66.1 million in 3Q15, a six-fold YoY (year-over-year) increase. Additionally, Cheniere Energy beat its 3Q16 revenue estimate by 99.6%.

The YoY jump in Cheniere Energy’s 3Q16 revenue was mainly driven by the commencement of LNG (liquefied natural gas) export from Train 1 and commissioning of Train 2 at Sabine Pass. The company announced the substantial completion of Train 2 on September 15, 2016. Cheniere Energy exported 18 cargoes in 2Q16, which comprised 15 operational cargoes from Train 1 and three commissioning cargoes from Train 2. The total LNG volume lifted in 3Q16 was 61 MMBtu (million British thermal units), including 51 MMBtu of operational volume and 10 MMBtu of commissioning volume. YTD (year-to-date), it has exported ~114 million MMBtu of LNG.

Cheniere Energy is expected to build seven train platforms, with five at Sabine Pass and two at Corpus Christi. It is expecting the substantial completion of Train 3 at Sabine Pass in mid-2017.

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Cheniere Energy’s 3Q16 EBITDA

Cheniere Energy’s EBITDA (earnings before interest, taxes, depreciation, and amortization) turned positive in 3Q16 after a long time. It reported EBITDA of $19.4 million in 3Q16, compared with -$138.0 million in 3Q15. The YoY change in its EBITDA was mainly driven by the inclusion of LNG revenue in 3Q16 results.

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