Cheniere's South Texas LNG Project 62% Complete, Ahead of Schedule
(Reuters) — Cheniere Energy missed second-quarter core profit estimates on Thursday, as weaker margins hurt the liquefied natural gas (LNG) producer.
Lower natural gas prices NGc1, which are down about 16% this year due to higher global inventories and lower demand forecasts, hurt the company's LNG delivery margins.
LNG revenue fell to $3.04 billion in the quarter ended June 30 from $3.92 billion a year earlier, and Cheniere's adjusted core profit of $1.32 billion missed LSEG estimate of $1.35 billion.
Cheniere's marginally raised full-year core profit forecast of $5.7 billion to $6.1 billion, up from $5.5 billion to $6 billion previously, also came below analysts' expectations of $6.01 billion at midpoint, according to LSEG data.
The company, however, said it had a more constructive outlook for the remainder of the year, betting on higher demand from Asia.
"Cheniere continues to execute on its capital return strategy through its share repurchase and previously announced dividend. LNG should perform in line with the broader group on generally inline quarterly results and full year expectations," RBC Capital Market analyst Elvira Scotto said.
The company also added that its Corpus Christi Stage 3 project, an export facility in South Texas, was progressing ahead of schedule, and was 62.4% complete as of June 30.
The project is expected to add 10 million metric tons per annum (mtpa) of LNG to Cheniere's existing production capacity of 15 mtpa.
It had said in June it will not know until September when it can start producing at the export facility, citing labor shortages particularly among skilled construction workers.
Related News
Related News
- Williams' $1 Billion Gas Pipeline Blocked by U.S. Appeals Court, Derailing Five-State Project
- Texas Waha Hub Gas Prices Plunge to Record Lows, Hit Negative Territory
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
- U.S. Buys Nearly 5 Million Barrels of Oil for Emergency Stockpile
- U.S. Appeals Court Strikes Down Controversial Biden Pipeline Safety Rules
- Report: Houston Region Poised to Become a Global Clean Hydrogen Hub
- Exxon Mobil to Start Gas Reserve Seismic Surveys in Greece
- LaPorte, Texas, Issues Shelter in Place After Altivia Plant Leaks Toxic Gas
- Texas Startup Endeavors Again to Build First Major U.S. Oil Refinery Since 1977
- Second Gas Pipeline Rupture in Texas’ Reeves County Raises Environmental Concerns
Comments