Cheniere: 2023 net profit jumps, revenue down

US LNG exporting giant Cheniere reported a 39 percent drop in its 2023 revenue due to lower prices, while its net profit jumped compared to the year before.

The owner of the Sabine Pass and Corpus Christi LNG export terminals said on Thursday its full-year 2023 revenue reached $20.39 billion.

This compares to 2022 revenue of $33.4 billion, which doubled compared to $15.8 billion in the year before.

Cheniere said the drop was mainly due “$9.1 billion decrease in Henry Hub pricing, to which the majority of our long-term LNG sales contracts are indexed.”

Net income was at $9.88 billion in 2023 and compares to $1.42 billion in the year before.

Cheniere said the favorable variance of $8.5 billion for 2023 as compared to the same period of 2022 was primarily attributable to a favorable variance of $14.4 billion, from changes in fair value and settlement of derivatives between the periods.

“The majority of the variance related to derivatives was due to non-cash favorable changes in fair value of our IPM agreements as a result of lower volatility in international gas prices and declines in international forward commodity curves, which changed from a loss of $5 billion in the year ended December 31, 2022 to a gain of $7 billion in the year ended December 31, 2023,” it said.