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Cheniere Energy Partners’ latest results

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LNG Industry,


Cheniere Energy Partners, L.P. (Cheniere Partners) reported net income of US$23 million and US$116 million for the three and nine months ended 30 September 2017, respectively, compared to net losses of US$82 million and US$257 million for the comparable periods in 2016. Adjusted EBITDA1 for the three and nine months ended 30 September 2017 was US$298 million and US$900 million, respectively, compared to US$100 million and US$164 million for the comparable 2016 periods.

During the three and nine months ended 30 September 2017, 44 and 135 LNG cargoes, respectively, were exported from the SPL Project, of which 5 and 12, respectively, were commissioning cargoes.

Variances in results of operations for the three and nine months ended 30 September 2017, as compared to the three and nine months ended 30 September 2016, were primarily driven by increased income from operations, due primarily to the timing of completion of Trains and the length of each Train's operations within the periods being compared, partially offset by increased interest expense, net of amounts capitalised. Total revenues increased US$572 million and US$2.2 billion during the three and nine months ended 30 September 2017, respectively, as compared to the three and nine months ended 30 September 2016, respectively, primarily due to the increased volume of LNG sold that was recognised as revenues following the achievement of substantial completion of these Trains.

Total operating costs and expenses increased US$423 million and US$1.7 billion during the three and nine months ended 30 September 2017, respectively, compared to the three and nine months ended 30 September 2016. The increase in total operating costs and expenses was primarily due to an increase in cost of sales and, to a lesser extent, from increases in operating and maintenance expense and depreciation and amortisation expense, partially offset by a decrease in general and administrative expense.

Recent achievements

Strategic

  • As of 31 October 2017, more than 200 cumulative LNG cargoes had been produced, loaded, and exported from the SPL Project (defined below), with deliveries completed to 25 countries worldwide. Sabine Pass Liquefaction, LLC has successfully fulfilled its obligations to the foundation customers of Trains 1 – 3 and provided LNG to the marketing function of Cheniere Energy, Inc.

Operational

  • Substantial completion of Train 4 of the SPL Project was achieved in October 2017, more than five months ahead of the guaranteed completion date.
  • LNG production operations at the SPL Project continued uninterrupted during Hurricane Harvey.

Financial

  • In August 2017, the Date of First Commercial Delivery (DFCD) relating to Train 2 of the SPL Project was reached under the respective 20-year Sale and Purchase Agreements (SPAs) with Gas Natural Fenosa LNG GOM, Limited and BG Gulf Coast LNG, LLC.
  • In September 2017, we issued an aggregate principal amount of US$1.5 billion of 5.25% Senior Notes due 2025 (the 2025 CQP Senior Notes). Net proceeds of the offering, after deducting commissions, fees and expenses, were used to prepay a portion of the outstanding indebtedness under our credit facilities.
  • In September 2017, Moody's Investors Service, S&P Global Ratings and Fitch Ratings assigned ratings of Ba2/BB/BB, respectively to the 2025 CQP Senior Notes.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/14112017/cheniere-energy-partners-latest-results/


 

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