Cheniere Energy Inc. releases 2Q16 report

Cheniere Energy Inc. reported a net loss of US$298.4 million, or US$1.31 per share (basic and diluted), for the three months ended 30 June 2016. Net Loss, As Adjusted was US$140.2 million, or US$0.61 per share (basic and diluted).

For the six months ended 30 June 2016, Cheniere reported a net loss of US$619.3 million, or US$2.71 per share (basic and diluted). For the six months ended 30 June 2016, Net Loss, As Adjusted was US$278.3 million, or US$1.22 per share (basic and diluted).

For the three and six months ended 30 June 2016, Net Loss, As Adjusted excludes the impact of changes in the fair value of our interest rate, commodity and FX derivatives, loss on early extinguishment of debt, share-based compensation related to employee separations, and impairment expense (recovery). Loss on early extinguishment of debt was associated with the write-off of debt issuance costs by Sabine Pass Liquefaction, LLC (SPL) and Cheniere Corpus Christi Holdings, LLC (CCH) in connection with the refinancing of a portion of their credit facilities and by Cheniere Creole Trail Pipeline LP as a result of the prepayment of its outstanding term loan. For the three and six months ended June 30, 2015, Net Loss, As Adjusted excludes the impact of changes in the fair value of interest rate, commodity and FX derivatives, loss on early extinguishment of debt related to the write-off of debt issuance costs by SPL primarily in connection with the refinancing of a portion of its credit facilities in March 2015, and impairment expense.

"The second quarter of 2016 saw Cheniere's continued transition from a development company into an operating one. During the quarter we took over care, custody, and control of Train 1 of the Sabine Pass Liquefaction Project and commenced commercial sales of LNG. After substantial completion, we exported 5 cargoes of LNG under our contract with BG Gulf Coast LNG, LLC (Shell) as of the end of the second quarter. Commissioning activities at Train 2 continue with first LNG achieved in late July, and our remaining Trains under construction continue on time and on budget," commented Jack Fusco, Cheniere's President and CEO. "On the financial front, we continued to manage our debt maturity profile by successfully issuing bonds to prepay a portion of the outstanding borrowings under credit facilities for both the Sabine Pass Liquefaction Project and the CCL Project."

Edited from press release by Angharad Lock

Read the article online at: https://www.hydrocarbonengineering.com/refining/15082016/cheniere-energy-inc-releases-2q16-report-2922/