Venture Global Beats Estimates on Plaquemines LNG Surge; Arbitration Ruling Near

Venture Global Inc. beat Wall Street expectations for the June quarter, reporting adjusted earnings before interest, taxes, depreciation and amortization of $1.39 billion on revenue of $3.1 billion. Analysts surveyed by LSEG had projected $1.25 billion in EBITDA and $2.89 billion in revenue. The stock gained between 4% and 6% in Tuesday trading, though it remains about 50% below the price set at the company’s January initial public offering. The outperformance was driven by a sharp increase in liquefied natural-gas volumes from the company’s 27.2-million-metric-ton Plaquemines export terminal in Louisiana, which is running at 77% of capacity after the Biden administration lifted a moratorium on new LNG export permits earlier this year. Venture Global sold 329 trillion British thermal units of LNG during the quarter, a 149% jump from the year-earlier period. Management said Plaquemines is on track to ship 227 to 240 cargos of LNG this year, while the older Calcasieu Pass facility is expected to load 144 to 149 cargos. Lower fixed liquefaction fees are now forecast to trim full-year adjusted EBITDA by $230 million to $240 million, roughly half the impact the company had previously signaled. Investors are also watching a series of contract arbitration disputes brought by BP, Shell and other buyers who allege Venture Global delayed commercial start-up at Calcasieu Pass to profit from spot sales. The company told analysts a ruling in the first case is expected “imminently”; an unfavorable decision could carry penalties of as much as $1.6 billion and set a precedent for the remaining actions.