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A Look Into Cheniere Energy’s Recent Operating Performance

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Cheniere Energy’s 4Q16 revenue

Cheniere Energy’s (LNG) 4Q16 revenue rose to $571.6 million from $68.4 million in 4Q15, and eightfold increase YoY (year-over-year). The rise in Cheniere Energy’s 4Q16 revenue was mainly driven by the commencement of LNG (liquefied natural gas) exports from Train 1 and Train 2 at Sabine Pass. Cheniere Energy exported 24 cargoes in 4Q16, all of which were operational cargoes. The total LNG volume lifted in 4Q16 was 82 TBtu (trillion British thermal units). In fiscal 2016, it exported ~196 TBtu of LNG, comprising 151 TBtu of operational LNG and 45 TBtu of commissioned LNG.

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Cheniere Energy is expected to build seven train platforms, with five at Sabine Pass and two at Corpus Christi. Train 3 at Sabine Pass was commissioned in January 2017. The partnership is expecting the substantial completion of Train 3 in the first quarter of 2017 while Train 4’s substantial completion is expected in the second half of 2017. We’ll look into this further in the next article.

Cheniere Energy’s 4Q16 earnings

Cheniere Energy reported a net profit for the first time. Its net income in 4Q16 was $109.7 million, compared with a net loss of $291.1 million in the same quarter last year. However, the company reported a net loss of $610 million for the 12-month period ended December 2016, compared with a net loss of $975.1 million in the prior year. Moreover, its operating cash flow remained negative in 2016. The situation is expected to improve in coming quarters with the commencement of LNG exports from Train 3 and 4.

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