Liquefied Natural Gas Limited (ASX: LNG) has provided its quarterly report for the 2018 December Quarter. For the December Quarter, the company reported net operating cash outflow of A$10.5 million. At the end of the December quarter, the company had a total cash balance of A$36.6 million which was A$9.8 million lower than the cash balance of September quarter. Further, the company’s liquidity management plan in place to fund operating requirements in the second quarter of 2020.
In December 2018, Magnolia LNG LLC and Meridian LNG Holdings Corp decided not to extend the deadline to satisfy the conditions of the Liquefaction Tolling Agreement which was signed on 22 July 2015 and entered into six extensions since then. 31 December 2018 was the deadline for the satisfaction of conditions. The company did not extend its offtake agreement with Meridian LNG so that it could free the desired capacity from Magnolia LNG for off-takers.
As per the announcement, during the December quarter, Bear Head LNG continued to market capacity primarily to major Western Canadian Sedimentary Basin producers and address gas path solution opportunities with Canadian pipeline companies.
According to the Company’s CEO Mr. Gregory M Vesey, the company’s LNG capacity contract pricing offer is very market competitive. This pricing, when combined with the company’s execution and delivery strategy, mature regulatory status, and financing plans, provides buyers with a very attractive commercial opportunity – Magnolia LNG.
During the quarter, the company was focused on signing long-term offtake contracts for Magnolia LNG while ensuring that the company’s best in class project execution and delivery strategy is fully ready to meet customer needs arising in this LNG market environment.
Mr. Gregory M Vesey also told that most LNG industry participants are bullish on the prospects for execution of new long-term offtake agreements in 2019. Consistent with this thesis, the company is negotiating for the Magnolia LNG capacity while focusing on Asian and European customers. During the December quarter, Magnolia LNG, LLC filed an application with the US Federal Energy Regulatory Commission (FERC) for increasing the authorized capacity of the facility to 8.8 mtpa and it also filed an application with Department of Energy (DOE) Office of Fossil Energy for increasing the quantity of authorized exports of domestically produced LNG up to 8.8 mtpa.
In November 2018, the company announced the issuance of 1,600,000 Incentive Rights to Gregory Matthew Vesey which was approved by shareholders at the 2018 Annual General Meeting which was held on November 15, 2018.
In the past six months, the share price of the company decreased by 23.53% as on 30 January 2019. LNG’s shares traded at $0.510 (-1.923% intraday) with a market capitalization of circa $297.31 million as on 31 January 2019. It has a 52-week high of $0.875 and a 52-week low of $0.385.
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