Cheniere Energy Inc. (LNG) saw its loss narrow to $100.44 million, or $0.44 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $297.81 million, or $1.31 a share. On the other hand, adjusted net loss for the quarter narrowed to $94.22 million, or $0.41 a share from a loss of $164.61 million or $0.72 a share, a year ago. Revenue during the quarter surged 604.93 percent to $465.67 million from $66.06 million in the previous year period. Operating margin for the quarter period stood at positive 3.28 percent as compared to a negative 78.83 percent for the previous year period.
Operating income for the quarter was $15.28 million, compared with an operating loss of $52.07 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $67.26 million compared to negative $51.48 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 14.44 percent for the quarter compared to negative 77.94 percent in the last year period.
"The third quarter of 2016 was significant for Cheniere on multiple fronts. Our transition to operations continues, highlighted in the third quarter by the substantial completion of Train 2 at Sabine Pass and the generation of approximately $67 million in Adjusted EBITDA2. Commissioning activities commenced on Train 3, and our remaining Trains under construction continue on time and on budget," said Jack Fusco, Cheniere's president and chief execuitve officer. "In addition, we continued to manage our debt maturity profile by successfully issuing bonds to prepay outstanding borrowings under credit facilities for the Sabine Pass liquefaction project, with the issuing entity having earned its first investment-grade credit rating during the quarter."
Working capital turns negative
Working capital of Cheniere Energy Inc. has turned negative to $504.15 million on Sep. 30, 2016 from positive $1,556.05 million on Sep. 30, 2015. Current ratio was at 0.81 as on Sep. 30, 2016, down from 3.93 on Sep. 30, 2015. Cash conversion cycle (CCC) has increased to 16 days for the quarter from 14 days for the last year period. Days sales outstanding went up to 16 days for the quarter compared with 9 days for the same period last year.
Days inventory outstanding has decreased to 12 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 67 for the same period last year.
Debt increases substantially
Cheniere Energy Inc. has witnessed an increase in total debt over the last one year. It stood at $20,815.02 million as on Sep. 30, 2016, up 31.44 percent or $4,979.11 million from $15,835.91 million on Sep. 30, 2015. Short-term debt stood at $1,781.51 million as on Sep. 30, 2016. Total debt was 91.74 percent of total assets as on Sep. 30, 2016, compared with 85.82 percent on Sep. 30, 2015. Debt to equity ratio was at 29.49 as on Sep. 30, 2016, up from 8.49 as on Sep. 30, 2015.
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