The major factors contributing to the net loss during the first quarter of 2004 were: (1) LNG receiving terminal development expenses of $3,875,776 (which were offset by a $1,481,472 minority interest in the operations of Corpus Christi LNG, L.P.), (2) non-cash compensation of $1,825,834 related to 2004 stock awards and (3) other general and administrative expenses of $1,635,570. These factors were offset by a $2,500,000 reimbursement from Cheniere's limited partnership investment in Freeport LNG Development, L.P. ("Freeport LNG") and the Company's equity share of the net income in Freeport LNG of $2,155,175.
Net income was recorded in the first quarter of 2003 as a result of a $4,760,000 gain on the sale of 60% of the Freeport LNG assets coupled with a $423,454 gain on the sale of a 10% limited partnership interest in the Freeport LNG terminal. These gains were partially offset by Cheniere's equity share of the loss in Freeport LNG of $1,200,000, and LNG receiving terminal development expenses and other general and administrative expenses totaling $914,172.
Cheniere's working capital at March 31, 2004 was $13,301,242 compared to $155,526 at December 31, 2003. The increase is primarily attributable to the previously announced sale of Cheniere common stock through a private placement offering in January 2004 and exercises of warrants and stock options that resulted in aggregate net proceeds of $15,272,308. Cheniere also received a $2,500,000 payment from Freeport LNG, which was payable pursuant to the sale of the 60% interest in the Freeport LNG project.
Most Popular Articles