HOUSTON, Nov. 5, 2010 /PRNewswire-FirstCall/ -- For the quarter and nine months ended September 30, 2010, Cheniere Energy Partners, L.P. ("Cheniere Partners") (NYSE Amex: CQP) reported a net loss of $7.0 million and net income of $110.2 million, or $(0.04) and $0.67 per common unit, respectively, compared with net income of $69.5 million and $125.0 million, or $0.43 and $0.77 per common unit, respectively, for the same periods in 2009. Revenues for the quarter and nine months ended September 30, 2010, decreased by $62.8 million as a result of the assignment of the terminal use agreement ("TUA") from Cheniere Marketing, LLC ("Cheniere Marketing") to Cheniere Energy Investments, LLC ("Investments"), our wholly owned subsidiary, which required us to eliminate for consolidated reporting purposes the TUA revenues under this contract to Sabine Pass LNG, L.P. ("Sabine Pass LNG"), our wholly owned subsidiary. The assignment is not expected to have an impact on distributable cash flows available for common unit holders. Quote:
Results
Cheniere Partners reported income from operations of $36.4 million and $240.1 million for the quarter and nine months ended September 30, 2010, respectively, compared to income from operations of $106.4 million and $224.0 million, respectively, for the comparable 2009 periods.
Revenues for the quarter and nine months ended September 30, 2010, were $66.6 million and $327.2 million, respectively, compared to revenues of $128.5 million and $286.8 million, respectively, for the comparable 2009 periods. Revenues primarily include capacity payments received from customers in accordance with their TUAs. Payments under the TUAs commenced in October 2008, April 2009 and July 2009 for Cheniere Marketing, Total Gas and Power North America, Inc.("Total") and Chevron U.S.A., Inc., ("Chevron"), respectively. For the quarter and nine months ended September 30, 2010, revenues were reduced by $62.8 million when compared to the comparable 2009 periods due to the assignment of Cheniere Marketing's TUA to Investments.
Total operating costs and expenses for the quarter and nine months ended September 30, 2010, were $30.2 million and $87.1 million, respectively, compared to $22.2 million and $62.7 million, respectively, for the comparable 2009 periods. Development expense increased $4.6 million and $5.7 million for the quarter and nine months ended September 30, 2010, respectively, compared to the comparable 2009 periods primarily due to expenses related to the proposed liquefaction project. Operating and maintenance expenses increased $1.3 million and $6.4 million for the quarter and nine months ended September 30, 2010, respectively, compared to the comparable 2009 periods. Depreciation expenses increased $1.6 million and $9.0 million for the quarter and nine months ended September 30, 2010, respectively, compared to the comparable 2009 periods. General and administrative expenses increased $0.5 million and $3.2 million in the quarter and nine months ended September 30, 2010, compared to the comparable 2009 periods. The increase in expenses during the quarter and nine months ended September 30, 2010, resulted from the achievement of full operability of the Sabine Pass LNG receiving terminal in the third quarter of 2009.
Interest expense, net for the quarter and nine months ended September 30, 2010, was $43.5 million and $130.6 million, respectively, compared to $38.1 million and $104.4 million, respectively, for the comparable 2009 periods. The increase in the 2010 periods resulted from achieving full operability of the Sabine Pass LNG receiving terminal in the third quarter of 2009 and thereby ending the capitalization of interest payments.
Derivative gains decreased $1.2 million and $4.0 million in the quarter and nine months ended September 30, 2010, respectively, compared to the same periods in 2009 due to changes in natural gas commodity prices associated with hedges on LNG inventory and the subsequent settlement of these respective hedges.
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Cheniere Energy Partners LP. (CQP)
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