Jack Fusco, President and CEO of Cheniere Energy, said global LNG demand was still „very high“ and the North Hemisphere summer slowdown was being offset by South American nations seeking cargoes. In the first quarter, Cheniere posted a 14 percent rise in revenue to more than $3 billion as it shipped 133 cargoes.
Revenues from its Sabine Pass liquefaction plant in Louisiana and its Corpus Christi facility in Texas as well as other activities amounted to $3.09Bln for the first three months of 2021 versus $2.71Bln in the same quarter of 2020.
Cheniere reported a 5 percent increase in quarterly net income to $393 million compared with $375M in the prior-year quarter.
“The global LNG market has recovered significantly for 2021 and beyond as demand has outstripped supply, resulting in higher prices even during the shoulder and summer months,” the Cheniere CEO told analysts.
“As a result of the winter storm, there was no material impact on our assets or operations, and we were able to fill some cargoes at Sabine Pass and restore Corpus Christi to normal operating levels quickly to mitigate impacts on our delivery obligations,” added Fusco.
“During the first quarter, we exported a quarterly record of 133 cargoes of LNG from our two facilities, with production incentivized by strong global LNG margins and we had the benefit of Corpus Christi Train Three commissioning volumes,” said the CEO.
Due to a sustained stronger LNG margin environment, together with results for the first quarter, the company was raising its full-year 2021 financial guidance for the second consecutive quarter. Fusco said he was optimistic on earnings because of attractive elements of the market for the rest of 2021 and beyond.
Fusco explained that there was “constructive LNG demand tension” between Europe and Asia earlier in 2021 that left some countries short of natural gas. “In addition, South America is entering its winter demand month and is contributing to the tightness in the global LNG market,” he concluded.