Venture Global LNG earned $4.85 billion from operations in 2023, document shows
Financial documents disclose rapid growth in revenue and profit
Risks include lawsuits by big-name customers BP, Shell and Edison
Estimated costs for building three new US LNG export facilities to top $100 bln
Adds analysts quotes, new financial details at paragraphs 5, 9-12
By Echo Wang and Curtis Williams
NEW YORK/HOUSTON, Nov 15 (Reuters) -Venture Global LNG, which has rocketed into the top ranks of U.S. natural gas exporters, earned $4.85 billion in its second year of operations, according to financial documents prepared for its initial public offering of shares.
Founded 11 years ago by an energy lawyer and investment banker, the company has quickly become a major exporter of liquefied natural gas, competing against larger rivals Cheniere Energy LNG.N, Freeport LNG and Sempra SRE.N.
Venture Global LNG is expected to announce on Friday its plans for a stock market listing in New York, according to a source familiar with the matter.
A spokesperson for the Arlington, Virginia-based firm did not have immediate comment.
The documents show Venture Global had operating income of $4.85 billion on revenue of $7.9 billion last year. This compares with operating profits of $3.56 billion on sales of $6.45 billion in 2022.
Estimated costs for building three new liquefiednatural gas (LNG) export facilities in the United States were revealed forthe first time to top$100 billion, the documents show.
Venture Global LNG has one operating plant in Louisiana and another expected to soon start producing LNG. The projected volumes from the two plants could next year rank it as the second largest U.S. exporter of the superchilled gas.
The company, which has a controversial history with four contract arbitration cases with customers, has on the drawing board enough future volumes that if completed could make it one of the three largest LNG producers in the world by 2030.
The Venture Global share offering could find significant interest from institutional investors, said analysts. The Virginia based company will become one of just a handful of options in the U.S. to invest in a pure LNG play.
A big draw for investors could be the "strategic advantages the sector may experience with the incoming Trump administration," said Alex Munton director of global gas and LNG research at consulting firm Rapidan Energy Group.
But the company is embroiled in contract disputes including BP BP.L, Shell SHEL.L, Edison EDNn.MI and Orlen PKN.WA that could cost it hundreds of million of dollars. If it loses the cases, the "amounts required to pay may be substantial ... and lead to the acceleration of all our debt for the relevant project," Venture Global warned.
Investors will weigh the potential loses because they could be significant, said Jason Feer, Poten and Partners Global head of business intelligence.
Reporting by Echo Wang in New York and Curtis Williams in Houston; Editing by Chizu Nomiyama and Nick Zieminski
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