Venture Global missed analysts’ estimates for quarterly revenue and adjusted core profit on Tuesday, as lower LNG prices at its Calcasieu Pass facility and higher operating and borrowing costs offset stronger sales volumes from its Plaquemines project.
Shares of the LNG company fell about 7% in premarket trading.
Venture Global reported second-quarter adjusted core profit of $2.49 billion, slightly below analysts’ estimate of $2.50 billion, according to data compiled by LSEG.
Revenue rose 48% to $4.58 billion in the second quarter, butmissed expectations of $4.66 billion.
Calcasieu’s operating income fell 63% from a year earlier due to lower U.S. natural gas prices and a decline in facility fees after it started commercial operations.
Operating expenses rose 15.9% to $2.39 billion, while interest expense jumped 58% to $489 million.
GROWTH DRIVES OUTLOOK
Plaquemines drove most of Venture Global’s growth as it continued commissioning and ramping up production.
The company’s LNG sales soared 42% to 466.4 trillion British thermal units (Btu) in the quarter.
Supply disruptions linked to the Middle East conflict and growing European demand have boosted appetite for U.S. LNG, prompting buyers to seek long-term contracts. New export projects are also bringing more supply to the global market.
Venture Global raised its 2026 adjusted core profit forecast for the second consecutive quarter, to a range of $8.7 billion to $9.1 billion, from its previous outlook between $8.2 billion and $8.5 billion.
The company also raised its Calcasieu export forecast to 149-154 cargoes from 147-154 and narrowed its Plaquemines forecast to 351-364 cargoes from 349-369.
Venture Global now expects fixed liquefaction fees of $12.50-$13.50 per million Btu for its remaining unsold 2026 cargoes, up from $9.50-$10.50 previously.
Liquefaction fees, a key source of earnings for U.S. LNG exporters, are largely secured through long-term contracts. But operators can adjust some pricing elements in response to global market conditions.
(Reporting by Sumit Saha in Bengaluru; Editing by Leroy Leo)