Cheniere Energy Revenues Slump 39% as Natural Gas Prices Drop - OilPrice.com
Cheniere Energy Revenues Slump 39% as Natural Gas Prices Drop | OilPrice.com
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Cheniere Energy ( NYSE: LNG), the biggest U.S. LNG exporter, reported on Thursday a 39% plunge in its revenues for 2023, dragged down by lower natural gas prices.
Cheniere Energy’s revenues fell to $20.4 billion last year from $33.4 billion booked in 2022, primarily due to lower U.S. and international natural gas prices in 2023.
Last year, natural gas prices dropped in the United States amid record-high production, and fell on international markets, too, due to a warmer 2022/2023 winter, high inventory levels in both Europe and Asia, and weaker demand in Europe.
Cheniere’s revenues for the fourth quarter of 2023 slumped by 47% year-on-year to $4.823 billion.
Cheniere Energy saw a drop in revenues, as well as in consolidated adjusted EBITDA at $8.8 billion for 2023, despite the higher LNG volumes it exported in the fourth quarter of last year and flat exports throughout 2023 compared to 2022.
The company announced a full year 2024 consolidated adjusted EBITDA guidance of $5.5 billion - $6.0 billion and full year 2024 distributable cash flow guidance of $2.9 billion - $3.4 billion.
Last year, Cheniere Energy “significantly advanced” its growth projects at both Sabine Pass and Corpus Christi, Jack Fusco, Cheniere’s president and chief executive officer, said in a statement.
“2024 is off to an excellent start, and we expect to once again deliver financial results above the midpoint of our 9-train run-rate guidance ranges,” the executive added.
“The structural shift to natural gas is progressing, and the market continues to call for additional reliable, flexible and price-certain LNG from the United States in order to facilitate energy security and environmental priorities the world over,” Fusco noted.
Cheniere’s expansion projects at Sabine Pass and Corpus Christi will further enable the world “to realize the energy security and environmental benefits of U.S. LNG,” according to the executive.
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By Tsvetana Paraskova for Oilprice.com
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.