Cheniere Energy swung to a loss in the first quarter from year-ago profit on Thursday, hurt by billions of dollars in losses tied to LNG-linked derivative contracts as geopolitical tensions and volatile global gas prices rattled energy markets.
The company said results were mainly hurt by a $4.8 billion unfavorable change in the value of derivative agreements linked to its long-term LNG contracts.
Volatility in global liquefied natural gas markets following the US-Israeli war on Iran is affecting energy companies, even as demand for US LNG exports remains strong.
The company said global gas price swings were driven by tight supply conditions, shipping disruptions and geopolitical tensions in the Middle East, which widened the gap between US and global gas prices.
Cheniere warned that global LNG prices would remain volatile if the disruptions continue, which could affect future earnings and cash flow.
The company's LNG revenue was at $5.72 billion in the quarter, compared with $5.31 billion a year earlier, while regasification revenues remained flat year-over-year.
The Houston, Texas-based company posted a net loss of $3.5 billion for the quarter ended March 31, compared with a profit of $353 million last year.
(Reporting by Pooja Menon in Bengaluru; Editing by Leroy Leo)
