HOUSTON, May 4, 2012 /PRNewswire/ -- For the quarter ended March 31, 2012, Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE Amex: CQP) reported a net loss of $19.3 million compared with a net loss of $2.2 million for the same period in 2011. Results include development expenses for the Sabine Pass Liquefaction Project ("Liquefaction Project") of $17.9 million for the quarter ended March 31, 2012 and $7.5 million for the comparable 2011 period.
Overview of Significant 2012 Events
Q1 2012 Results
Cheniere Partners reported income from operations of $24.9 million for the quarter ended March 31, 2012, compared to income from operations of $41.1 million for the comparable 2011 period. The decrease in income from operations of $16.2 million quarter over quarter was primarily due to an increase in development expenses of $10.4 million and a decrease in revenues of $5.1 million. Development expenses include costs incurred to develop the Liquefaction Project.
We continue to make progress on the Liquefaction Project, which is being developed for up to four liquefaction trains, each with a nominal production capability of approximately 4.5 mtpa. We anticipate LNG exports from the Sabine Pass LNG terminal could commence as early as 2015, with each liquefaction train commencing operations approximately six to nine months after the previous train.
We are advancing towards commencing construction on the first two liquefaction trains. The Liquefaction Project recently received approval from the FERC. One of the last steps needed to proceed with construction is to obtain financing. We expect to fund the first two liquefaction trains with a combination of debt and equity and are actively pursuing financing for the first two liquefaction trains. Construction of the first two liquefaction trains is expected to commence in the first half of 2012.
Commencement of construction for LNG trains three and four is subject, but not limited to, entering into an engineering procurement and construction agreement, obtaining financing and reaching a positive final investment decision. We have engaged Bechtel Oil, Gas and Chemicals, Inc. to complete front-end engineering and design work and to negotiate a lump sum turnkey contract. Construction for liquefaction trains three and four is targeted to begin early 2013.
Summary Project Timeline
Trains 1 & 2
Trains 3 & 4
DOE export authorization
Definitive commercial agreements
Completed 7.7 mtpa
Completed 8.3 mtpa
- BG Gulf Coast LNG, LLC
- Gas Natural Fenosa
- GAIL (India) Ltd.
- Certificate to commence construction
We estimate that the annualized distribution to common unitholders for fiscal year 2012 will be $1.70 per unit. We will pay a cash distribution per common unit of $0.425 to unitholders of record as of May 1, 2012, and the related general partner distribution on May 15, 2012.
Cheniere Partners owns 100 percent of the Sabine Pass LNG terminal located in western Cameron Parish, Louisiana on the Sabine Pass Channel. The terminal has sendout capacity of 4.0 Bcf/d and storage capacity of 16.9 Bcfe. Additional information about Cheniere Partners may be found on its website: www.cheniereenergypartners.com.
This press release contains certain statements that may include "forward-looking statements" within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are "forward-looking statements." Included among "forward-looking statements" are, among other things, (i) statements regarding Cheniere Partners' business strategy, plans and objectives and (ii) statements expressing beliefs and expectations regarding the development of Cheniere Partners' LNG terminal business and liquefaction project. Although Cheniere Partners believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere Partners' actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere Partners' periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere Partners does not assume a duty to update these forward-looking statements.
(Financial Table Follows)
Cheniere Energy Partners, L.P.
Selected Financial Information
(in thousands, except per unit data) (1)
Three Months Ended
Operating and maintenance expense
Operating and maintenance expense—affiliate
General and administrative expense
General and administrative expense—affiliate
Income from operations
Interest expense, net (4)
Basic and diluted net income per common unit
Weighted average number of common units outstanding used for basic and diluted
net income per unit calculation:
As of March 31,
As of December 31,
Cash and cash equivalents
Restricted cash and cash equivalents
Other current assets (4)
Non-current restricted cash and cash equivalents
Property, plant and equipment, net
Debt issuance costs, net
Current liabilities (4)
Long-term debt, net of discount
Deferred revenue, including affiliate
Other liabilities (4)
Total partners' deficit
Total liabilities and partners' deficit
Please refer to Cheniere Energy Partners, L.P. Annual Report on Form 10-Q for the period ended March 31, 2012, filed with the Securities and Exchange Commission.
Consolidated operating results of Cheniere Energy Partners, L.P. and its consolidated subsidiaries for the three months ended March 31, 2012 and 2011.
Consolidated balance sheets of Cheniere Energy Partners, L.P. and its consolidated subsidiaries.
Amounts include transactions between Cheniere Partners and Cheniere Energy, Inc. or subsidiaries of Cheniere Energy, Inc.
SOURCE Cheniere Energy Partners, L.P.