KEY POINTS
- Venture Global’s stock fell over 22 percent after a weak profit outlook.
- The company raised the cost estimate for its Plaquemines LNG plant.
- Fourth-quarter revenue and profit figures missed analysts’ expectations.
Venture Global’s stock took a sharp dive on Thursday after the company released a 2025 earnings forecast that fell short of Wall Street’s expectations.
The liquefied natural gas (LNG) producer saw its shares drop by as much as 22.5 percent, hitting a low of $11.02 during morning trading.
The company projected an adjusted core profit between $6.8 billion and $7.4 billion for 2025, significantly lower than analysts’ estimates of $8.66 billion, according to data compiled by LSEG.
This disappointing outlook marks a major setback for the company, which made a strong debut in January and quickly became one of the most valuable U.S. LNG firms.
Rising costs add pressure to company’s operations
Adding to the challenges, Venture Global has revised the estimated cost of its Plaquemines LNG plant in Louisiana, increasing it by about $2 billion.
The facility, initially expected to cost between $21 billion and $22 billion, is now projected to require between $23.3 billion and $23.8 billion. As of December 31, the company had already invested $19.8 billion into the project.
Despite these rising costs, the company recently received approval from U.S. federal regulators to expand the export capacity of the Plaquemines plant from 24 million metric tons per year to 27.2 million metric tons.
While this increase may provide future growth opportunities, it does little to alleviate investor concerns about the company’s current financial struggles.
Revenue and profit figures fail to meet expectations
Venture Global released fourth-quarter financials showing their total revenue declined by 6.6 percent and settled at $1.52 billion. Company revenue decreased 13 percent because of diminished LNG sales volume and surpassed analyst projections of $1.92 billion by a wide margin.
According to Reuters, the company’s adjusted core profit for the quarter came in at $700 million—far below the expected $1.34 billion.
However, the company benefited from decreased expenses to achieve a $871 million net income result in the fourth quarter while showing a $50 million loss in the same period last year.
Looking ahead, the company expects to export between 140 and 148 LNG cargos from its Calcasieu project and between 219 and 239 cargos from the Plaquemines project in 2025.
Meanwhile, the company handles ongoing legal disputes with main customers, including BP, Shell and Edison, which create financial and legal uncertainties.
