Cheniere Energy reports rise in third-quarter profit on strong LNG demand

By Curtis Williams and Tanay Dhumal

Oct 30 (Reuters) - Cheniere Energy LNG.N on Thursday reported a rise in third-quarter profit, citing strong demand for liquefied natural gas, and its shares rose 1% by early afternoon.

Cheniere's LNG revenue jumped to $4.30 billion in the third quarter from $3.55 billion a year earlier. The company's adjusted core profit of $1.61 billion missed the analysts' average estimate of $1.66 billion, according to data compiled by LSEG. The company blamed lower contributions from some portfolio optimization activities.

In 2026, Cheniere expects it will export more than 50 million metric tons of LNG for the first time, CEO Jack Fusco told an earnings call.

The increase in output is being driven by projected completion of an expansion at the company's Corpus Christi facility in Louisiana that will add 10 million metric tons per year of capacity. The U.S. is the world's largest LNG exporter, and Cheniere is the country's largest producer of the superchilled gas.

Cheniere said it exported 163 cargoes of LNG in the three months ended September 30, up 3% from a year earlier.

The company said it still plans for further expansion but only if future projects meet clear criteria. Specifically, 95% of any new facility's capacity must be sold on long-term contracts, Cheniere must fund 50% of the project, and return on investment needs to be based on lower margins and must be at least 10%, said CFO Zach Davis.

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Cheniere Chief Commercial Officer Anatol Feygin said many other LNG developers had been undisciplined in greenlighting new projects.

"It seems like projects are getting over the FID finish line with a very broad array of counterparties and at times no counterparties," Feygin said.

With an additional 30 to 40 million mtpa of LNG expected on the market annually through 2030, LNG prices are likely to start falling in 2026, he added.

Cheniere's long-term contracting and efficiency will provide some protection from falling LNG prices, Feygin continued. Lower prices will boost demand in some Asian markets that are more price sensitive.

Recent talks between U.S. President Donald Trump and several Asian leaders including China's President Xi Jinping have given U.S. LNG producers more optimism about increased exports to the region, CEO Fusco said.

Net income attributable to Cheniere was $1.05 billion, or $4.75 per share, for the quarter ended September 30, compared with $893 million, or $3.93 per share, a year earlier.