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A Look into Cheniere Energy’s Recent Operating Performance

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Dec. 26 2017, Updated 7:32 a.m. ET

Cheniere Energy’s 3Q17 revenues

Cheniere Energy’s (LNG) revenues increased to ~$1.4 billion in 3Q17 from $465.0 million in 3Q16, a 201.7% YoY (year-over-year) increase. The YoY jump in Cheniere Energy’s 3Q17 revenues mostly resulted from the increased number of LNG shipments and higher LNG volumes.

Cheniere Energy exported 44 LNG shipments in 3Q17 compared to 18 in 3Q16. Total LNG volume lifted in 3Q17 were 160 TBtu (trillion British thermal units). Overall, the company had exported 200 LNG shipments through October 31, 2017.

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Cheniere Energy’s 3Q17 EBITDA

Cheniere Energy’s adjusted EBITDA[1. earnings before interest, tax, depreciation, and amortization] increased to $442.0 million in 3Q17 compared to $67.0 million in 3Q16. The YoY increase in the company’s EBITDA is mainly due to higher LNG export revenues in 2017.

Cheniere Energy’s 3Q17 net income

Despite strong revenue growth, Cheniere Energy’s net loss widened to $289.0 million in 3Q17 compared to $101.0 million in 3Q16. This trend was mostly due to increased interest expenses and increased derivative losses.

As a C corporation, Cheniere Energy is expected to benefit from the US tax cut once it posts a profit. On the other hand, Cheniere Energy’s subsidiaries, Cheniere Energy Partners (CQP) and Cheniere Energy Partners LP Holdings (CQH), operate as pass-through entities and are less likely to benefit from the tax reform.

In the next article, we’ll look into Cheniere Energy’s EBITDA and distributable cash flow guidance for 2017 and 2018.

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