Venture Global forecasts downbeat 2026 profit due to winter storm, LNG margin squeeze

March 2 (Reuters) - U.S.-based LNG company Venture Global's VG.N forecast 2026 adjusted core profit below Wall Street expectations on Monday, due to impacts from Winter Storm Fern and margin compression in the first quarter.

Reuters had reported last month that exports of liquefied natural gas from the U.S. fell in January to 11.3 million metric tonnes from 11.5 mmt in December as a winter freeze shuttered some plants and lowered output at others.

The trend of selling LNG under long-term contracts is squeezing margins, preventing companies like Venture Global from capitalizing on short-term price surges.

However, the company's revenue nearly tripled to $4.4 billion in the fourth quarter, with net income rising 23% to $1.07 billion, due to higher LNG sales volumes at the Plaquemines Project in Louisiana, which began shipping in December 2024.

In 2025, the U.S. became the first country to export more than 100 million metric tons (mmt) of LNG in a single year, powered by the startup of production from new plants.

Commercial activity in the sector has gained further momentum after U.S. President Donald Trump lifted a moratorium on new LNG export permits after taking office last year.

The company on Monday said it signed an agreement to supply commodity trader Trafigura with about 0.5 million metric tons per annum (mtpa) of LNG for five years starting in 2026, bringing total new contracted quantities from 2025 to the present to nearly 9.75 mtpa.

Venture Global expects to export 145 to 156 cargoes from the Calcasieu Project in Louisiana and 341 to 371 cargoes from the Plaquemines Project in 2026.

The Arlington, Virginia-based company now expects 2026 adjusted core earnings to be between $5.20 billion and $5.80 billion, compared with the average of analysts' estimates of $6.03 billion, according to data compiled by LSEG.