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Sep 30, 2020

Cheniere Q3 2020 Earnings Report

Reported a net loss and decreased revenues due to accelerated recognition of revenues in prior periods related to elections by long-term SPA customers.

Key Takeaways

Cheniere Energy reported a net loss of $463 million for the third quarter of 2020, compared to a net loss of $318 million for the comparable 2019 period. Consolidated Adjusted EBITDA was $477 million, compared to $694 million for the comparable 2019 period.

Net loss increased primarily due to decreased total margins and increased loss on modification or extinguishment of debt.

Total margins decreased primarily due to the accelerated recognition of revenues in prior periods related to elections by long-term SPA customers.

Consolidated Adjusted EBITDA decreased primarily due to the accelerated recognition of revenues in prior periods related to elections by long-term SPA customers.

Reconfirmed full year 2020 financial guidance and provided robust financial guidance for full year 2021.

Total Revenue
$1.46B
Previous year: $2.17B
-32.7%
EPS
-$1.84
Previous year: -$1.14
+61.4%
LNG Cargoes Exported
55
LNG Volumes Exported
193
Gross Profit
$2.23B
Previous year: $3.44B
-35.2%
Cash and Equivalents
$2.09B
Previous year: $2.54B
-17.6%
Free Cash Flow
-$717M
Previous year: -$747M
-4.0%
Total Assets
$35.9B
Previous year: $34.7B
+3.5%

Cheniere

Cheniere

Cheniere Revenue by Segment

Forward Guidance

Cheniere reconfirmed its full year 2020 financial guidance and provided robust financial guidance for full year 2021. They also raised their run rate Consolidated Adjusted EBITDA and Distributable Cash Flow guidance.

Positive Outlook

  • Consolidated Adjusted EBITDA 2020: $3.8 - $4.1 billion
  • Distributable Cash Flow 2020: $1.0 - $1.3 billion
  • Consolidated Adjusted EBITDA 2021: $3.9 - $4.2 billion
  • Distributable Cash Flow 2021: $1.2 - $1.5 billion
  • Revised Run Rate Consolidated Adjusted EBITDA: $5.3 - $5.7 billion

Revenue & Expenses

Visualization of income flow from segment revenue to net income