Venture Global lowers its 2026 profit forecast due to the winter storm and LNG margin squeeze

Venture Global, a U.S.-based company that produces LNG, reported a core profit for 2026 below Wall Street's expectations due to the?impacts of Winter Storm Fern?and margin compression during?the first quarter.

Last month, it was reported that the U.S. exports of natural gas liquefied in January fell to 11.3 mmt from 11.5 mmt during December due to a winter freeze which closed some plants and reduced output in others.

As a result of the trend to sell LNG on long-term contracts, margins are squeezed and companies like Venture Global cannot capitalize on price spikes in the short term.

The company's revenue almost tripled in the?fourthquarter to $4.4 billion. Net income rose 23% to $1.07 Billion due to increased LNG sales volumes in Louisiana at the Plaquemines?Project, which started shipping in December 2024.

In premarket trading, shares of the company based in Arlington, Virginia rose by?7.2%.

The U.S. will be the first nation to export over 100 million metric tonnes (mmt) in one year by 2025. This is due to the start-up of new LNG plants.

The company announced on Monday that it had signed an agreement with commodity trader Trafigura to supply about 0.5 million tons of LNG per year (mtpa), starting in 2026. This brings the total number of new contracts?from 2025 until now to almost 9.75 mtpa.

The company continues to 'anticipate a final?investment?decision for CP2 LNG phase II in Louisiana in the first half of 2026. Construction at Phase I'remains on schedule for first production by late 2027.

Venture?Global anticipates exporting 145-156 cargoes of the Calcasieu Project, Louisiana and 341-371 cargoes of the Plaquemines Project by 2026.

LSEG data shows that the company expects a core profit of between $5.20 and $5.80 Billion in?2026, compared to an average analyst estimate of $6.03 Billion. (Reporting from Bengaluru by Pooja menon; editing by Vijay Kishore).

(source: Reuters)