Energy & Commodities
Venture Global raises profit forecast after third-quarter beat
Venture Global beat third-quarter profit and revenue estimates and lifted its full-year forecast, with nearly all of its available cargoes for the year already under contract.
Quick Read
- Venture Global beat analyst estimates for third-quarter profit and revenue.
- The liquefied natural gas exporter raised its full-year forecast for adjusted EBITDA, a profit measure.
- Nearly all of its available cargoes for the year are already contracted, the company said.
- CEO Mike Sabel said the company plans to explore off-grid power for AI data centers.
What did Venture Global report?
Venture Global (NYSE: VG), an exporter of liquefied natural gas (LNG), earned 96 cents a share in the third quarter. That beat the analyst estimate of 51 cents.
Why it matters: Revenue came in at $4.8 billion, above the $4.687 billion estimate. The shares rose Tuesday after the report.
Output landed at the top of what the company expected, CEO Mike Sabel said. The company said it shipped more cargoes than a year earlier.
Why did the company raise its forecast?
Venture Global now forecasts full-year adjusted EBITDA of $10 billion-$10.3 billion, up from $8.7 billion-$9.1 billion. Adjusted EBITDA is a profit measure before interest, taxes and depreciation.
The initial phase of its Plaquemines plant began commercial operations Oct. 31 and has already loaded cargoes for customers, the company said. Its Calcasieu Pass plant met expectations in the quarter.
Contracts take much of the guesswork out of the number. About 99% of available cargoes for this year are already contracted, the company said.
What could change the outlook?
The forecast assumes a range of liquefaction fees, the charge for turning gas into LNG, on cargoes not yet sold. Those unsold cargoes are where the estimate could still move.
Growth also rests on projects still being built. The company said its CP2 plant remains under construction and targets initial LNG production there next year. Its planned Plaquemines expansion depends on regulatory approvals.
Sabel also said the company plans to explore off-grid power for AI data centers, using its gas and existing infrastructure. Exploring is not the same as a signed deal.
What comes next?
What’s next: The company said it expects higher fourth-quarter output at Calcasieu Pass after summer maintenance. Venture Global also declared a quarterly dividend, payable Dec. 31 to shareholders of record on Dec. 15.
For readers
What it could mean for you: If you own Venture Global shares directly, its results reach you in full, with no other holdings to offset them. The raised forecast leans on cargoes already sold under contract, which may make this year's profit less exposed to swings in LNG prices. What could still move the stock is delivery on its plants. The questions are whether Plaquemines keeps ramping up, whether Calcasieu Pass output rises after maintenance as the company said, and whether CP2 starts production on the timeline it gave.
Questions and answers
Did Venture Global beat third-quarter earnings estimates?
Yes. The company's earnings per share and revenue both came in above the analyst estimates, and the shares rose Tuesday after the report.
Why did Venture Global raise its profit forecast?
Nearly all of the year's available cargoes are already contracted, the company said. The initial phase of its Plaquemines plant also began commercial operations on Oct. 31.
What is Venture Global planning for AI data centers?
CEO Mike Sabel said the company plans to explore off-grid power for AI data centers using its natural gas and existing infrastructure.
The numbers
| GE Vernova (GEV) price | $797.04 |
|---|---|
| GE Vernova (GEV) change | −3.89% |
| GE Vernova (GEV) market value | $210 billion |
| GE Vernova (GEV) 52-week high | $1,174.86 |
| S&P 500 change | −0.38% |
| 10-year Treasury yield | 4.98% |
Tuesday’s close
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