Cheniere Energy Q3 Earnings Dip on Lower LNG and Gas Prices

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Cheniere Energy News

LNG,Q3 Earnings,Revenues

Cheniere Energy reported a decline in Q3 profits and revenue due to lower LNG prices and a shift towards long-term contracts, but remains optimistic about long-term Asian gas demand, especially in China.

The biggest U.S. LNG exporter, Cheniere Energy Inc NYSE LNG, reported on Thursday a decline in third-quarter revenues and profits amid decreased market volatility and lower international LNG and natural gas prices. Cheniere Energy booked $3.763 billion in total revenues for Q3, down from $4.159 billion for the same period last year. LNG revenues dropped to $3.554 billion from $3.

The drop in revenues was the result of declining international LNG and gas prices and a reduction of volumes sold under short-term agreements as a result of additional long-term agreements commencing after the third quarter of 2023, Cheniere Energy said. Part of the decline was attributable to declining Henry Hub pricing, the U.S. natural gas benchmark, to which the majority of Cheniere’s long-term LNG sales contracts are indexed.

 

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