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Cheniere Energy Beat Analysts’ 4Q17 Estimates

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Cheniere Energy’s 4Q17 revenue

Cheniere Energy (LNG) and its subsidiaries, Cheniere Energy Partners LP Holdings (CQH) and Cheniere Energy Partners (CQP), reported their 4Q17 earnings on February 21, 2018. Cheniere Energy’s revenue increased to $1.746 billion in 4Q17 from $572.0 million in 4Q16—a 205.5% YoY (year-over-year) increase. The company beat its revenue estimate by 8.6%.

The YoY jump in Cheniere Energy’s 4Q17 revenue was mainly due to an increase in the number of cargoes shipped and higher LNG volumes due to the commencement of LNG exports from Train 2 and Train 3 at Sabine Pass and higher LNG demand. Cheniere Energy exported 70 cargoes in 4Q17—compared to 23 in 4Q16. The total LNG volume lifted in 4Q17 was 252 trillion British thermal units. Overall, Cheniere Energy has exported 300 cargoes through February 21, 2018.

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4Q17 EBITDA

Cheniere Energy’s adjusted EBITDA increased to $523.0 million in 4Q17—compared to $136.0 million in 4Q16. The YoY increase in Cheniere Energy’s EBITDA was mainly due to an increase in LNG export revenues.

2018 guidance

Cheniere Energy announced an increase in its 2018 adjusted EBITDA during the 4Q17 earnings release. The company expects its 2018 adjusted EBITDA to be $2.0 billion–$2.2 billion—compared to the previous guidance of $1.9 billion–$2.1 billion. The increase in the 2018 EBITDA guidance is due to a higher contribution from Cheniere Marketing following higher LNG prices. Cheniere Energy had “higher-than-expected DES volumes on the water during the end of 2017, 43 TBtu or 12 cargoes, which will be recognized in the first quarter of 2018 upon delivery, and that is also contributing to the increase,” as noted in the 4Q17 earnings call.

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