© Reuters. FILE PHOTO: A sign of U.S LNG company Cheniere is seen at the registration counter at the International Conference & Exhibition on Liquefied Natural Gas (LNG2019) in Shanghai, China April 1, 2019. REUTERS/Stringer
(Reuters) -U.S. liquefied (LNG) company Cheniere Energy (NYSE:) Inc on Thursday reported a third-quarter loss on derivative contracts while delivering revenue and adjusted profit that more than doubled on surging LNG demand.
The top U.S. exporter of LNG said it took a $5.49 billion loss on derivatives and foreign exchange from mark-to-market declines in the value of its long-term gas contracts.
Shares fell more than 3% in early trading to $172.50.
Cheniere reported a net loss of $2.39 billion for the quarter ended Sept. 30, up from a loss of $1.08 billion in the same quarter a year ago.
Revenue rose to $8.85 billion for the three months, from $3.20 billion a year earlier, on higher volumes and prices for its LNG.
Company Chief Executive Jack Fusco said he was confident “in a strong finish to 2022” and expects that expansion projects now under way in Texas and Louisiana will add to its future results.
Third-quarter earnings benefited from higher-margin LNG sales into the spot market and from a partial payment from Chevron Corp (NYSE:) to exit a terminal contract, Jefferies analyst Sam Burwell said in a note.
Its LNG volumes increased by 12% during the third quarter versus a year earlier, and its number of cargoes shipped rose by 11% to 156, the company said.
Its outlook for 2022 consolidated adjusted profit remains at up to $11.5 billion and full-year 2022 distributable cash flow at up to $8.6 billion, each of which were increased by about $1.2 billion in September.
Cheniere owns liquefaction terminals capable of producing about 45 million tonnes per annum (MTPA) of LNG at Sabine Pass in Louisiana and Corpus Christi in Texas.
The company is adding seven mid-scale liquefaction trains at Corpus Christi, called the Stage 3 project, which will have a production capacity of over 10 MTPA of LNG.
Cheniere is also developing two additional liquefaction trains at that facility that could produce another 3 MTPA.