LNG producer Cheniere's export volumes fuel core profit beat
May 3 (Reuters) - Top U.S. liquefied natural gas producer Cheniere Energy beat adjusted core profit estimates on Friday, as higher-than-expected export volumes countered lower natural gas prices.
The U.S. emerged as the top LNG exporter in 2023 as buyers scrambled to find alternate sources after Western sanctions squeezed supplies from Russia.
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Cheniere's overall loaded LNG volumes remained roughly flat year-on-year at 601 trillion British thermal units (BTU), but higher than Wall Street expectations.
Earnings were stronger than estimated on 56 trillion Btu higher volumes contributing $190 million more margin than forecast, TD Cowen analysts said in a note.
Cheniere reported adjusted earnings before interest, taxes, depreciation, and amortization of $1.77 billion, down 51% from a year earlier but ahead of the average analyst estimate of $1.54 billion, according to LSEG data.
The Houston, Texas-based firm reported LNG revenue of $4.04 billion for the three months ended March 31, compared with $7.09 billion in the year-ago quarter, due to lower U.S. natural gas prices.
The company attributed a $697 million reduction in revenue to U.S. Henry Hub gas pricing to which the majority of its long-term LNG sales contracts are indexed.
Cheniere's revenue from short-term agreements slumped 75.6% to $793 million as international gas prices scaled back from the peaks of 2022 and global LNG supplies improved.
Shares were down marginally at $159.29 in early trading.
Cheniere currently has the capacity to produce about 45 million tons per annum (MTPA) of LNG at Corpus Christi in Texas and Sabine Pass in Louisiana. It plans to expand capacity at both the facilities.
(Reporting by Sourasis Bose in Bengaluru; Editing by Sriraj Kalluvila)