Cheniere Energy Inc. widened its loss in the second quarter over a year ago, blaming the decline on the cost of developing its liquefied natural gas (LNG) receiving terminals. The Houston-based producer reported a net loss of $8.05 million (minus 43 cents/share) versus a net loss of $1.62 million (minus 11 cents) in 2Q2003.

Factors that contributed to the quarterly decline included LNG terminal development costs of $5.45 million, which were offset by a $751,907 minority interest in the operations of the Corpus Christi facility. Cheniere also lost $1.6 million in general and administrative expenses and another $1.49 million for its equity share in the net loss of the Freeport development.

However, working capital climbed higher at the end of the second quarter, to $8.45 million from $155,526 on Dec. 31, 2003, primarily because of the sale of common stock through a private placement offering in January 2004 and stock options that resulted in net proceeds of $16.4 million. Cheniere also received a $2.5 million payment from Freeport LNG for selling its 60% interest in the project, as well as $2.19 million in partnership contributions from its Corpus LNG minority owner.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.