Cheniere Energy Posts Strong 4Q16 Earnings, Misses Estimates



Cheniere Energy’s 4Q16 revenue

Cheniere Energy (LNG) and its MLP subsidiaries, Cheniere Energy Partners (CQP) and Cheniere Energy Partners Holdings (CQH), reported their 4Q16 earnings on February 28, 2017.

Cheniere Energy’s 4Q16 revenue rose to $571.6 million, compared to $68.4 million in 4Q15, an 8x YoY (year-over-year) rise. However, Cheniere Energy missed its 4Q16 revenue estimate by 3.2%.

The YoY rise in Cheniere Energy’s 4Q16 revenue was mainly driven by the commencement of its LNG (liquefied natural gas) exports from its Train 1 and Train 2 at Sabine Pass. Cheniere Energy exported 24 cargoes in 4Q16, all of which were operational cargoes. Its total LNG volumes lifted in 4Q16 were 82 TBtu (trillion British thermal units). In 2016, it exported ~196 TBtu of LNG, including 151 TBtu that were operational and 45 TBtu that were commissioned.

Cheniere Energy is expected to build seven train platforms, including five at Sabine Pass and two at Corpus Christi. Its Train 3 at Sabine Pass was commissioned in January 2017. The partnership is expecting the substantial completion of its Train 3 in 1Q17, while its Train 4’s substantial completion is expected to come in 2H17.

Cheniere Energy’s 4Q16 earnings

Cheniere Energy reported a net profit for the first time in 4Q16. It reported net income of $109.7 million in 4Q16, compared to its net income of -$291.1 million in 4Q15. 

The partnership’s 4Q16 adjusted EBITDA rose to $134.2, compared to -$90.6 in 4Q15. The YoY change in its EBITDA was mainly driven by strong LNG revenue growth.

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