Cheniere Energy (NYSE:LNG) has released its financial results for the second quarter of 2023, showcasing an adjusted profit of $5.61 per share. This figure surpassed the expected estimate of $2.37 as per Zacks Consensus. Notably, the earnings also showcased a significant improvement from the $2.90 reported during the same quarter last year. This impressive performance can be attributed primarily to a substantial 72.6% year-on-year reduction in costs and expenses.
In terms of revenues, the company’s second-quarter earnings revealed a total of $4.10 billion, falling short of the Zacks Consensus Estimate of $4.81 billion. The top-line figure also demonstrated a notable 48.8% decline from the $8.01 billion reported during the comparable period in the previous year. The decline in revenues can be linked to decreased cargo shipments, along with reductions in both volumes and prices.
Cheniere’s adjusted EBITDA for the quarter stood at $1.86 billion, surpassing initial predictions of $1.41 billion. The distributable cash flow (DCF) for the same period amounted to $1.35 billion. During this quarter, the company successfully shipped 149 cargoes, slightly fewer than the 156 recorded in the same quarter of the preceding year. Furthermore, the total volumes of LNG exported came to 534 trillion British thermal units (TBtu), down from 564 TBtu during the same period in 2022.
The company announced a quarterly cash dividend of 39.5 cents per common share, scheduled for payment on August 16, 2023, to shareholders on record as of August 9, 2023.
Financial Overview
During the second quarter, costs and expenses totaled $1.8 billion, marking a substantial 72.6% decrease from the figures reported in the prior-year quarter. However, this figure fell short of the anticipated prediction of $2.9 billion.
As of June 30, 2023, Cheniere held approximately $4.5 billion in cash and cash equivalents, with net long-term debt amounting to $23.4 billion. In the same reporting period, the company noted a cost (recovery) of sales amounting to $912 million.
Future Outlook Cheniere anticipates its adjusted EBITDA for the entirety of 2023 to fall within the range of $8.2 billion to $8.7 billion. The company also expects its DCF to be in the range of $5.7 billion to $6.2 billion.
Project Updates: Sabine Pass Liquefaction Project (SPL)
Cheniere operates six natural gas liquefaction trains at the Sabine Pass LNG terminal, collectively boasting a production capacity of approximately 30 million tons per annum (mtpa) of LNG. A notable achievement for the company was the substantial completion of Sabine Pass Train 6, which occurred over a year ahead of the scheduled timeline. Cheniere efficiently achieved full utilization and stable operations for the train well in advance of the original plan.
CCL and CCL Stage 3 Project
In the Corpus Christi LNG terminal vicinity, Cheniere currently manages three natural gas liquefaction trains, capable of producing around 15 mtpa of LNG. Furthermore, Cheniere is in the process of expanding alongside the CCL Project, introducing seven midscale Trains that are projected to increase the total production capacity by over 10 mtpa of LNG.
CCL Midscale Trains 8 & 9 Project
Cheniere is actively engaged in the construction of two midscale trains adjacent to the CCL Stage 3 Project. Once operational, these trains are estimated to jointly produce around 3 mtpa of LNG.
Featured Image: Megapixl @Timonschneider
Author Faith Yakubu 
