Cheniere Posts Q2 Profit on Strong LNG Demand

(Reuters) — Cheniere Energy Inc., the largest U.S. liquefied natural gas (LNG) exporter, reported a second-quarter profit on Thursday, and raised its full-year outlook, boosted by demand from buyers seeking to replace gas from Russia.

Western sanctions imposed on Moscow in response to its war on Ukraine has fueled a scramble for alternatives to Russian gas, sending global gas prices soaring, with forecast for LNG demand expected to double by 2040.

The United States, which has committed to deliver additional liquefied natural gas (LNG) to European countries, became the top exporter of the supercooled fuel in the first half of 2022.

Cheniere, which accounts for around 50% of U.S shipments of LNG, said it loaded 570 trillion British thermal unit (TBtu) of LNG volumes, up from 499 TBtu a year earlier.

It disclosed contracts during the quarter to sell 140 million tonnes of LNG through 2050 and raised its full-year earnings outlook for a second time this year. Cheniere now forecasts adjusted earnings in a range of $9.8 billion to $10.3 billion, up from guidance of $7-$7.5 billion earlier in the year.

The Houston-based company's quarterly net income attributable to common stockholders came in at $741 million, or $2.9 per share, compared with a loss of $329 million, or $1.30 per share, a year earlier.

 

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