Venture Global forecast higher-than-expected current-year core profit on Tuesday, on the back of higher LNG demand and shipments from its projects.
Shares of Venture Global, which became one of the most valuable U.S. LNG companies when it listed in January, were up marginally in premarket trading.
The U.S. is the world’s top exporter of LNG and commercial activity in the sector has gained further momentum after President Donald Trump lifted a moratorium on new export permits in January.
While Venture lowered its current-year adjusted core profit forecast to be between $6.4 billion and $6.8 billion from its previous expectation of between $6.8 billion and $7.4 billion, the midpoint was still above Wall Street expectations of $6.54 billion according to data compiled by LSEG.
Venture said changes in domestic and international natural gas prices could impact its adjusted core profit forecast and added the spread between domestic and international prices for gas and LNG have compressed since last quarter.
The firm expects to export 145 to 150 cargos from the Calcasieu project and 222 to 239 cargos from the Plaquemines project this year. Its previous forecasts were 140 to 148 cargos from the Calcasieu project and 219 to 239 cargos from the Plaquemines project this year.
The company sold 228.3 trillion British Thermal Units (TBtu) of LNG in the first-quarter, a 62% jump from a year earlier. Combined with higher LNG sales prices, the company almost doubled its core profit to $1.35 billion.
However, the quarterly adjusted core profit missed estimates of $1.38 billion, weighed down by higher operating costs related to ramping up LNG production at Plaquemines project and commercialization of the Calcasieu project.
Last month, Venture began commercial operations at Calcasieu Pass project, providing relief to the company after being locked up in contract disputes with customers.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Krishna Chandra Eluri)