For the second quarter and first half of this year, US LNG plant developer, Cheniere Energy, generated revenues of around $4.1 bill and $11.4 bill, respectively, compared to around $741 mill and a negative $124 mill for the corresponding 2022 months.
In addition, the company reported net income of about $1.4 bill and $6.8 bill, consolidated adjusted EBITDA of around $1.9 bill and $5.5 bill, and distributable cash flow of about $1.4 bill and $4.3 bill, respectively for the two periods.
Cheniere also raised its full year 2023 consolidated adjusted EBITDA guidance to $8.3 bill - $8.8 bill and full year 2023 distributable cash flow guidance to $5.8 bill - $6.3 bill.
During the 2Q23 and 1H23, Cheniere pre-paid about $201 mill and $1.1 bill, respectively, of consolidated long-term debt, repurchased an aggregate of around 2.3 mill shares and 5.4 mill shares of common stock for around $337 mill and $788 mill, respectively, and paid a quarterly dividend of $0.395 per share of common stock attributable to 1Q23 on 17th May, 2023.
In 2Q23, Cheniere’s subsidiaries signed new long-term contracts totalling up to around 76 mill tonnes of LNG with expected deliveries between 2026 and 2049:
“The outstanding financial, commercial and operational results announced are a product of our team’s commitment to safe, efficient and strategic execution throughout the second quarter,” said Jack Fusco, Cheniere’s President and CEO.
“In addition to the safe and successful completion of our planned maintenance turnaround at Sabine Pass, our team achieved several key milestones on construction and development across our growth projects at both sites, as well as building significant commercial momentum, all of which supports the continued growth of our market-leading LNG platform and further evidences the long-term role of our reliable, cleaner-burning LNG in the global energy mix,” he said.
The company explained that the net income increases were primarily due to changes in fair value of Cheniere’s derivative portfolio of about $782 mill and $5.5 bill for 2Q23 and 1H23, before tax and non-controlling interests, compared to a negative $728 mill and a negative $4.2 bill of changes in the previous year’s periods.
These were partially offset by decreased total margins per MMBtu of LNG delivered, higher provisions for income tax, as well as higher net income attributable to non-controlling interests in both periods.
Consolidated adjusted EBITDA decreased by about $671 mill and $225 mill for the periods, compared to 2Q22 nd 1H22, respectively.
This fall was primarily due to decreased total margins per MMBtu of LNG delivered driven by a higher proportion of volumes sold under long-term contracts, lower total volumes sold into short-term markets, and lower international gas prices.
The decreases were partly offset by an increased contribution from certain portfolio optimisation activities.
As of 30th June, 2023, Cheniere’s total consolidated available liquidity was about $12.7 bill. Cash and cash equivalents were $4.5 bill, of which $1.8 bill was held by Cheniere Partners.
In addition, the company had restricted cash and cash equivalents of $640 mill, $1.3 bill of available commitments under the Cheniere revolving credit facility, $1.3 bill of available commitments under the Cheniere Corpus Christi Holdings working capital facility, $3.3 bill of available commitments under CCH’s term loan credit facility, $1 bill of available commitments under the CQP revolving credit facility and $671 mill of available commitments under the SPL revolving credit facility.
