By Curtis Williams
Nov 10 (Reuters) – Venture Global (VG.N) reported a profit for the third quarter on Monday. This news comes as the company benefits from record liquefied natural gas (LNG) exports and several new long-term supply contracts.
As the second-largest LNG exporter in the U.S., Venture Global saw its net profit increase to $429 million for the quarter ending September 30, reversing a loss of $347 million during the same time last year. Revenue also surged by 260% to reach $3.3 billion.
In the third quarter, Venture Global exported an all-time high of 100 cargoes, thanks in part to the increased capacity at its Plaquemines LNG facility.
However, the company adjusted its full-year forecast for core profit down to between $6.35 billion and $6.50 billion, from the previous estimate of $6.40 billion to $6.80 billion. This change is due to lower liquefaction fees and reserves linked to ongoing arbitration issues.
CEO Mike Sabel mentioned during the earnings call, “While there has been some mild easing in winter 2026 LNG spreads, the demand remains strong, and the margins are healthy.”
Initially, the company's shares jumped by 10% in premarket trading but settled to a 1% increase from its Friday close during regular trading hours.
Sabel reassured investors, stating that Venture Global is not worried about its ability to grow, even if it loses the pending arbitration cases, thanks to its strong cash position and future earning potential.
ARBITRATION CASES LOOM
Customers of its Calcasieu Pass plant, such as Repsol (REP.MC), Galp (GALP.LS), Orlen (PKN.WA), and Edison (EDNn.MI), are seeking billions in damages. They claim delays in the delivery of contracted cargoes allowed Venture Global to profit from spot market sales after Russia's invasion of Ukraine.
Venture Global has denied these claims. The company stated that a power issue at the plant prevented it from starting formal commercial operations, despite exporting billions worth of LNG. So far, BP (BP.L) has won its case, while Shell (SHEL.L) faced a defeat.
Sabel mentioned, “There are four separate ongoing cases that we expect will be resolved over the next few years unless settled.”
Even if the company loses all pending cases, it estimates that liabilities from these unresolved issues should be limited to $765 million. The total damages being sought have been reduced from $6.7 billion to $7.4 billion down to $4.8 billion to $5.5 billion.
NEW SUPPLY DEALS
Venture Global recently secured new 20-year supply contracts with Naturgy (NTGY.MC) from Spain and Atlantic-SEE LNG Trade from Greece, adding to existing agreements with Petronas, SEFE Energy, and Eni (ENI.MI). These new contracts boost the company's long-term sales commitments to 5.25 million metric tons per year starting in the latter half of 2025.
Sabel emphasized that these agreements demonstrate the market's confidence in Venture Global's ability to deliver products on schedule and at competitive prices. He also indicated that the company does not need many more sales contracts to move forward with a financial investment decision for the second phase of its CP2 facility.
Currently, 34 out of 36 liquefaction trains at the Plaquemines project are producing LNG, and the CP2 project received final approval from the U.S. Department of Energy to export to countries without free trade agreements.
Sabel announced that the CP2 facility, which is under construction in Louisiana, will have an output capacity of 30 million tons per year, increased from the previous design of 28 mtpa.