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LNG NYSE· Cheniere Energy Inc.
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LNG NYSE· Cheniere Energy Inc.
Earnings report Q4 2023

LNG Revenues Decline by $12.2 Billion in Latest Quarter

Segments of revenue

In the latest quarter, LNG revenues for the company totaled $19.6 billion, representing a significant decrease of $12.2 billion compared to the same period last year. The breakdown of the different segment revenues is as follows:

  • LNG from the Liquefaction Projects sold under third-party long-term agreements: $12.8 billion
  • LNG from the Liquefaction Projects sold by the integrated marketing function under short-term agreements: $6.0 billion
  • LNG procured from third parties: $359 million
  • Net derivative gains (losses): $110 million
  • Other revenues: $252 million

Strengths

Despite the decline in LNG revenues, the company's management highlighted a favorable variance of $8.5 billion in net income attributable to common stockholders for the year ended December 31, 2023, compared to the same period in 2022. This variance was primarily driven by changes that were not specified in the report. It is worth noting that the company's long-term agreements for LNG sales continue to contribute a significant portion of their revenues.

Challenges

The company faced a significant decline in LNG revenues in the latest quarter, with a decrease of $12.2 billion compared to the same period last year. This decline can be attributed to various factors, such as lower volumes delivered as LNG revenues and a decrease in LNG prices. The report does not provide specific details regarding the reasons behind the decline.

Noteworthy

The company reported a decrease in volumes delivered as LNG revenues, with a difference of 36 TBtu compared to the previous quarter. Additionally, there was a decrease in volumes loaded during the current period but recognized in the current period, indicating potential delays in the recognition of revenues.

Summary

In the latest quarter, the company experienced a significant decline in LNG revenues, amounting to $12.2 billion. This decline can be attributed to various factors, including lower volumes delivered as LNG revenues and a decrease in LNG prices. Despite this decline, the company reported a favorable variance in net income attributable to common stockholders for the year, indicating potential strengths in other areas of their business. However, the report does not provide specific details regarding the reasons behind the decline in LNG revenues.

Source documents

Form 10-K  filed on Feb 21, 2024
141 pages scanned

Reference data

Company financials Q4 revenue 4.48B
Analyst estimates Q4 EPS missed by -17.84%
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