Venture Global's quarterly core profit nearly triples on higher LNG sales volumes

By Pooja Menon and Curtis Williams

March 2 (Reuters) - Venture Global VG.N said on Monday that adjusted core profit nearly tripled in the fourth quarter due to higher LNG sales volumes at the Plaquemines project in Louisiana. Its shares soared as much as 22% in morning trading.

Plaquemines, the second-largest export plant in the U.S., delivered 16.4 million metric tons in 2025 after sending its first cargo in December 2024. All 36 of the separate production trains at the facility are now operating, CEO Mike Sabel told analysts on a conference call on Monday.

The company has already applied to federal regulators to increase peak production at Plaquemines from 28 mtpa to 35 mtpa during the colder winter months, with annual production projected to average 31 mtpa, Sabel said. It is on track to move Phase 1 to commercial operations by the fourth quarter this year, Sabel said.

In 2025, the U.S. became the first country to export more than 100 million metric tons of liquefied natural gas in a single year, powered by the startup of production from new plants including Venture Global's Plaquemines facility.

Venture Global plans to double its LNG exports by 2029 and the first phase of its CP2 export facility under construction in Louisiana is on schedule and within budget, Sabel said. The company continues to expect a final investment decision for CP2 LNG Phase 2 by the first half of 2026, while construction at Phase 1 remains on track for first production in late 2027.

Venture Global said on Monday it has signed an agreement to supply commodity trader Trafigura with about 0.5 million metric tons per annum of LNG for five years, starting in 2026, bringing total new contracted quantities from 2025 to the present to nearly 9.75 mtpa. It expects to sign more long-term deals in the coming months, Sabel said.

The company's adjusted core profit rose 191% to $2.0 billion in the quarter, with net income rising about 23% to $1.07 billion.

It expects to export 145 to 156 cargoes from the Calcasieu Pass project in Louisiana and 341 to 371 cargoes from the Plaquemines project in 2026.

However, Venture Global forecast 2026 adjusted core profit below Wall Street expectations, due to impacts from winter storm Fern and margin compression in the first quarter.

Fern cost the company $500 million because of higher natural gas prices and some foregone cargoes, CFO Jonathan Thayer told the earnings call.

The Arlington, Virginia-based company now expects current-year adjusted core earnings at 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.

Venture Global expects all remaining arbitration cases filed against it to come to an end this year and is confident of its ability to win the remaining cases following a victory over Repsol REP.MC, Sabel said.

Several of the world's largest energy companies have filed legal claims against Venture Global over its alleged failure to abide by the terms of long-term contracts. The LNG producer has blamed the delays on technical challenges.

BP BP.L so far is the only company to have won its case, and the award for damages is expected in 2027, said Sabel, who added that BP had increased its claims for damages, without elaborating.

Venture Global shares were up 14.1% at $11.06 on Monday afternoon, off an earlier high at $11.92.