- LNG exporter says derivative contracts soared to boost profit
- Company exported a record number of cargoes in first quarter
According to Bloomberg article published on May 2, 2023, Cheniere Energy Inc. announced record profit even as liquified natural gas prices plummeted, boosted by hedging gains.
The largest US exporter of liquefied natural gas reported first-quarter net income attributable to common stockholders of $5.4 billion, beating estimates by a wide margin, the company said in a statement.
The value of outstanding contracts aimed at protecting it from lower commodity prices surged by $4.7 billion, the company said. Prices for the heating and power-generation fuel have fallen by half this year both in the US and Europe mostly because of mild winter conditions.
The terminal developer and operator, which exported a record number of LNG cargoes in the first quarter amid booming demand overseas, raised its forecast for 2023 earnings before items including derivative gains by $200 million to a midpoint $8.5 billion.
