Direktnyheter • Jun 05
Cheniere Energy Partners Moves Forward With US$4.69b Sabine Pass LNG Expansion Contract Cheniere Energy Partners’ subsidiary Sabine Pass Liquefaction Stage V (SPLV) has awarded a US$4.69b lump sum, turnkey EPC contract to Bechtel Energy for Phase 1 of the Sabine Pass Liquefaction Expansion Project in Cameron Parish, Louisiana.
Phase 1 includes construction of Train 7 and is part of a broader plan to add up to three major liquefaction trains, targeting a combined peak LNG production capacity of about 20 million tonnes per annum.
Bechtel, which previously delivered six liquefaction trains and the original LNG receiving terminal at Sabine Pass for Cheniere-related entities, will continue its long-running role on the site as Cheniere prepares to make a final investment decision on Phase 1.
The EPC award signals that Cheniere is moving the Sabine Pass expansion closer to execution, with defined project scope and cost for the initial phase.
For investors, key considerations include construction risk, timing and cost discipline on this large US$4.69b project, along with how potential additional capacity could affect Cheniere Energy Partners’ long-term contract mix and cash flow resilience once the project is fully sanctioned and completed. Reported Earnings • May 11
First quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2026 results: EPS: US$0.38 (down from US$1.09 in 1Q 2025). Revenue: US$3.60b (up 20% from 1Q 2025). Net income: US$186.0m (down 65% from 1Q 2025). Profit margin: 5.2% (down from 18% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) missed analyst estimates by 83%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Tillkännagivande • May 09
Cheniere Energy Partners, L.P. Reconfirms Distribution Guidance for the Full Year 2026 Cheniere Energy Partners, L.P. reconfirmed Distribution guidance for the full year 2026. For the year, company expected distribution guidance of $3.10 to $3.40 per common unit, maintaining a base distribution of $3.10 per common unit. Declared Dividend • Apr 30
Fourth quarter dividend of US$0.79 announced Shareholders will receive a dividend of US$0.79. Ex-date: 8th May 2026 Payment date: 15th May 2026 Dividend yield will be 4.9%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (64% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 6.9% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 11% over the next 3 years. However, it would need to fall by 29% to increase the payout ratio to a potentially unsustainable range. Tillkännagivande • Apr 30
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on May 15, 2026 Cheniere Energy Partners, L.P. declared a cash distribution of $0.790 per common unit to unitholders of record as of May 8, 2026, comprised of a base amount equal to $0.775 and a variable amount equal to $0.015, and the related distribution to its general partner. These distributions are payable on May 15, 2026. Price Target Changed • Mar 27
Price target increased by 7.4% to US$59.33 Up from US$55.27, the current price target is an average from 15 analysts. New target price is 8.6% below last closing price of US$64.92. Stock is up 1.5% over the past year. The company is forecast to post earnings per share of US$4.20 for next year compared to US$5.17 last year. Reported Earnings • Feb 27
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: US$6.17 (up from US$4.26 in FY 2024). Revenue: US$10.8b (up 24% from FY 2024). Net income: US$2.99b (up 45% from FY 2024). Profit margin: 28% (up from 24% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 23%. Revenue is forecast to grow 2.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. New Risk • Feb 27
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 7.6% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Tillkännagivande • Feb 26
Cheniere Energy Partners, L.P. Provides Distribution Guidance for the Full Year 2026 Cheniere Energy Partners, L.P. provided distribution guidance for the full year 2026. For the year, the company distribution guidance of $3.10 - $3.40 per common unit, maintaining a base distribution of $3.10 per common unit. Declared Dividend • Feb 01
Third quarter dividend of US$0.83 announced Shareholders will receive a dividend of US$0.83. Ex-date: 9th February 2026 Payment date: 13th February 2026 Dividend yield will be 5.9%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (80% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 6.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 11% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Jan 29
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on February 13, 2026 Cheniere Energy Partners, L.P. declared a cash distribution of $0.830 per common unit to unitholders of record as of February 9, 2026, comprised of a base amount equal to $0.775 and a variable amount equal to $0.055, and (ii) the related distribution to its general partner. These distributions are payable on February 13, 2026. New Risk • Oct 31
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.9% per year for the foreseeable future. Minor Risks Negative equity (-US$340m). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Declared Dividend • Oct 30
Second quarter dividend of US$0.83 announced Shareholders will receive a dividend of US$0.83. Ex-date: 7th November 2025 Payment date: 14th November 2025 Dividend yield will be 6.1%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (74% earnings payout ratio) and cash flows (62% cash payout ratio). The dividend has increased by an average of 6.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 8.6% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Oct 30
Cheniere Energy Partners, L.P. Reconfirms Distribution Guidance for the Full Year 2025 Cheniere Energy Partners, L.P. reconfirmed full year 2025 distribution guidance of $3.25 to $3.35 per common unit, maintaining a base distribution of $3.10 per common unit. Tillkännagivande • Oct 28
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on November 14, 2025 Cheniere Energy Partners, L.P. declared a cash distribution of $0.830 per common unit to unitholders of record as of November 7, 2025, comprised of a base amount equal to $0.775 and a variable amount equal to $0.055. The distributions is payable on November 14, 2025. Tillkännagivande • Oct 03
Cheniere Energy Partners, L.P. to Report Q3, 2025 Results on Oct 30, 2025 Cheniere Energy Partners, L.P. announced that they will report Q3, 2025 results Pre-Market on Oct 30, 2025 Buy Or Sell Opportunity • Sep 17
Now 20% overvalued Over the last 90 days, the stock has fallen 5.1% to US$53.63. The fair value is estimated to be US$44.51, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 23% over the last 3 years. Earnings per share has grown by 10%. For the next 3 years, revenue is forecast to grow by 2.9% per annum. Earnings are also forecast to grow by 3.1% per annum over the same time period. Buy Or Sell Opportunity • Aug 28
Now 21% overvalued Over the last 90 days, the stock has fallen 3.5% to US$55.38. The fair value is estimated to be US$45.71, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 23% over the last 3 years. Earnings per share has grown by 10%. For the next 3 years, revenue is forecast to grow by 3.1% per annum. Earnings are also forecast to grow by 3.2% per annum over the same time period. Reported Earnings • Aug 08
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: US$0.91 (down from US$0.95 in 2Q 2024). Revenue: US$2.46b (up 30% from 2Q 2024). Net income: US$438.0m (down 4.8% from 2Q 2024). Profit margin: 18% (down from 24% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) also missed analyst estimates by 4.8%. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. New Risk • Aug 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.5% per year for the foreseeable future. Minor Risks Negative equity (-US$380m). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Tillkännagivande • Aug 07
Cheniere Energy Partners, L.P. Reaffirms Distribution Guidance for the Full Year 2025 Cheniere Energy Partners, L.P. reaffirmed its distribution guidance for the full year 2025. For the full year company expects to pay dividend of $3.25 - $3.35 per common unit, maintaining a base distribution of $3.10 per common unit. Declared Dividend • Aug 01
First quarter dividend of US$0.82 announced Shareholders will receive a dividend of US$0.82. Ex-date: 8th August 2025 Payment date: 14th August 2025 Dividend yield will be 5.8%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (78% earnings payout ratio) and cash flows (57% cash payout ratio). The dividend has increased by an average of 6.8% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 7.3% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Tillkännagivande • Jul 30
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on August 14, 2025 On July 29, 2025, Cheniere Energy Partners, L.P. (the “Partnership”) declared a quarterly cash distribution of $0.820 per common unit payable on August 14, 2025 to unitholders of record as of August 8, 2025. Reported Earnings • May 09
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: US$1.32 (up from US$1.18 in 1Q 2024). Revenue: US$2.99b (up 30% from 1Q 2024). Net income: US$641.0m (up 13% from 1Q 2024). Profit margin: 21% (down from 25% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 9.3%. Earnings per share (EPS) missed analyst estimates by 4.4%. Revenue is forecast to stay flat during the next 3 years compared to a 3.7% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 02
Fourth quarter dividend of US$0.78 announced Shareholders will receive a dividend of US$0.78. Ex-date: 9th May 2025 Payment date: 15th May 2025 Dividend yield will be 5.3%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (76% earnings payout ratio) and cash flows (56% cash payout ratio). The dividend has increased by an average of 6.7% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to remain steady over the next 3 years, which should provide adequate earnings cover for the dividend. Tillkännagivande • Apr 30
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on May 15, 2025 Cheniere Energy Partners, L.P. declared a quarterly cash distribution of $0.820 per common unit payable on May 15, 2025 to unitholders of record as of May 9, 2025. The distribution comprised of a base amount equal to $0.775 and a variable amount equal to $0.045. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to US$55.91, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 9x in the Oil and Gas industry in the US. Total returns to shareholders of 23% over the past three years. New Risk • Feb 24
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 24% Last year net profit margin: 35% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (20% operating cash flow to total debt). Minor Risks Negative equity (-US$509m). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (24% net profit margin). Tillkännagivande • Feb 21
Cheniere Energy Partners, L.P. Provides Distribution Guidance for the Full Year 2025 Cheniere Energy Partners, L.P. provided distribution guidance for the full year 2025. For the year, the company distribution guidance of $3.25 - $3.35 per common unit, maintaining a base distribution of $3.10 per common unit. Reported Earnings • Feb 20
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: US$5.19 (down from US$6.95 in FY 2023). Revenue: US$8.70b (down 9.9% from FY 2023). Net income: US$2.51b (down 25% from FY 2023). Profit margin: 29% (down from 35% in FY 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) missed analyst estimates by 1.1%. Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Declared Dividend • Feb 02
Third quarter dividend of US$0.82 announced Shareholders will receive a dividend of US$0.82. Ex-date: 10th February 2025 Payment date: 14th February 2025 Dividend yield will be 5.3%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (80% earnings payout ratio) and cash flows (59% cash payout ratio). The dividend has increased by an average of 7.4% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 4.3% over the next 3 years. However, it would need to fall by 11% to increase the payout ratio to a potentially unsustainable range. Tillkännagivande • Jan 30
Cheniere Energy Partners, L.P. Declares Quarterly Distributions, Payable on February 14, 2025 Cheniere Energy Partners, L.P. declared a cash distribution of $0.820 per common unit to unitholders of record as of February 10, 2025, comprised of a base amount equal to $0.775 and a variable amount equal to $0.045, and the related distribution to its general partner. These distributions are payable on February 14, 2025. New Risk • Nov 03
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 1.5% per year for the foreseeable future. Minor Risks Negative equity (-US$626m). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (25% net profit margin). Reported Earnings • Nov 01
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: US$1.31 (up from US$1.19 in 3Q 2023). Revenue: US$2.06b (down 3.4% from 3Q 2023). Net income: US$635.0m (up 10% from 3Q 2023). Profit margin: 31% (up from 27% in 3Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) exceeded analyst estimates by 12%. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 3.0% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Declared Dividend • Oct 28
Second quarter dividend of US$0.81 announced Shareholders will receive a dividend of US$0.81. Ex-date: 4th November 2024 Payment date: 14th November 2024 Dividend yield will be 7.1%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (78% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has increased by an average of 8.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 6.4% over the next 3 years. However, it would need to fall by 13% to increase the payout ratio to a potentially unsustainable range. Tillkännagivande • Oct 25
Cheniere Energy Partners, L.P. Declares Quarterly Distributions, Payable on November 14, 2024 Cheniere Energy Partners, L.P. declared (i) a cash distribution of $0.810 per common unit to unitholders of record as of November 4, 2024, comprised of a base amount equal to $0.775 and a variable amount equal to $0.035, and (ii) the related distribution to its general partner. These distributions are payable on November 14, 2024. Major Estimate Revision • Aug 15
Consensus EPS estimates increase by 13%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from US$9.17b to US$9.00b. EPS estimate rose from US$4.02 to US$4.55. Net income forecast to grow 2.8% next year vs 16% growth forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$49.57. Share price was steady at US$48.64 over the past week. New Risk • Aug 12
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 1.8% per year for the foreseeable future. Minor Risks Negative equity (-US$756m). Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Aug 09
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: US$1.18 (up from US$0.84 in 2Q 2023). Revenue: US$1.89b (down 2.0% from 2Q 2023). Net income: US$570.0m (up 40% from 2Q 2023). Profit margin: 30% (up from 21% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.2%. Earnings per share (EPS) exceeded analyst estimates by 7.4%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 1.8% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Aug 08
Cheniere Energy Partners, L.P. Reconfirms Distribution Guidance for Full Year 2024 Cheniere Energy Partners, L.P. reconfirmed distribution guidance for full year 2024. For the period, the company is reconfirming full year 2024 distribution guidance of $3.15 - $3.35 per common unit, maintaining a base distribution of $3.10 per common unit. Buy Or Sell Opportunity • Aug 05
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.1% to US$50.08. The fair value is estimated to be US$62.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 50%. For the next 3 years, revenue is forecast to grow by 4.7% per annum. Earnings are forecast to decline by 0.6% per annum over the same time period. Declared Dividend • Jul 29
First quarter dividend of US$0.81 announced Shareholders will receive a dividend of US$0.81. Ex-date: 7th August 2024 Payment date: 14th August 2024 Dividend yield will be 6.9%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (85% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 8.7% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to decline by 2.2% over the next 3 years. However, it would need to fall by 6.0% to increase the payout ratio to a potentially unsustainable range. Tillkännagivande • Jul 26
Cheniere Energy Partners, L.P. Declares Quarterly Distributions, Payable on August 14, 2024 Cheniere Energy Partners, L.P. declared a cash distribution of $0.810 per common unit to unitholders of record as of August 7, 2024, comprised of a base amount equal to $0.775 and a variable amount equal to $0.035, and (ii) the related distribution to its general partner. These distributions are payable on August 14, 2024. Tillkännagivande • May 10
Cheniere Energy Partners, L.P. announced a financing transaction Cheniere Energy Partners, L.P. announced that it will issue senior notes on May 8, 2024. The notes will mature in 2034. The notes will rank pari passu. Notes has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) New Risk • May 06
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. Minor Risks Negative equity (-US$822m). Dividend is not well covered by earnings (95% payout ratio). Reported Earnings • May 03
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: US$1.41 (down from US$3.50 in 1Q 2023). Revenue: US$2.30b (down 21% from 1Q 2023). Net income: US$682.0m (down 60% from 1Q 2023). Profit margin: 30% (down from 58% in 1Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue exceeded analyst estimates by 3.9%. Earnings per share (EPS) also surpassed analyst estimates by 16%. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 01
Fourth quarter dividend of US$0.81 announced Shareholders will receive a dividend of US$0.81. Ex-date: 8th May 2024 Payment date: 15th May 2024 Dividend yield will be 8.0%, which is higher than the industry average of 4.5%. Sustainability & Growth Dividend is covered by both earnings (59% earnings payout ratio) and cash flows (69% cash payout ratio). The dividend has increased by an average of 9.3% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 36% over the next 3 years. Since a fall of 34% would increase the payout ratio to a potentially unsustainable range, the dividend may be at risk. Tillkännagivande • Apr 30
Cheniere Energy Partners, L.P. Declares Quarterly Distribution, Payable on May 15, 2024 Cheniere Energy Partners, L.P. declared a cash distribution of $0.810 per common unit to unitholders of record as of May 9, 2024, comprised of a base amount equal to $0.775 and a variable amount equal to $0.035, and the related distribution to its general partner. These distributions are payable on May 15, 2024. Major Estimate Revision • Feb 29
Consensus EPS estimates increase by 19%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from US$9.69b to US$9.23b. EPS estimate rose from US$3.32 to US$3.94. Net income forecast to shrink 39% next year vs 0.3% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$50.36. Share price fell 5.0% to US$48.62 over the past week. Reported Earnings • Feb 23
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: US$8.79 (up from US$3.27 in FY 2022). Revenue: US$9.66b (down 44% from FY 2022). Net income: US$4.25b (up 169% from FY 2022). Profit margin: 44% (up from 9.2% in FY 2022). The increase in margin was driven by lower expenses. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 1.3% growth forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 30
Upcoming dividend of US$1.04 per share at 7.9% yield Eligible shareholders must have bought the stock before 06 February 2024. Payment date: 14 February 2024. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 7.9%. Within top quartile of American dividend payers (4.6%). Higher than average of industry peers (4.4%). Declared Dividend • Jan 29
Third quarter dividend of US$1.04 announced Shareholders will receive a dividend of US$1.04. Ex-date: 6th February 2024 Payment date: 14th February 2024 Dividend yield will be 7.6%, which is higher than the industry average of 4.4%. Sustainability & Growth Dividend is covered by both earnings (41% earnings payout ratio) and cash flows (57% cash payout ratio). The dividend has increased by an average of 9.7% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 54% over the next 3 years. A fall of 55% would increase the payout ratio to a potentially unsustainable range, which means the dividend may be at risk. Tillkännagivande • Jan 26
Cheniere Energy Partners, L.P. Declares Quarterly Distribution, Payable on February 14, 2024 Cheniere Energy Partners, L.P. declared a cash distribution of $1.035 per common unit to unitholders of record as of February 7, 2024, comprised of a base amount equal to $0.775 and a variable amount equal to $0.260, and the related distribution to its general partner. These distributions are payable on February 14, 2024. Buying Opportunity • Dec 06
Now 21% undervalued Over the last 90 days, the stock is up 9.0%. The fair value is estimated to be US$73.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 33% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.2% per annum. Earnings is forecast to decline by 27% per annum over the same time period. Major Estimate Revision • Nov 09
Consensus EPS estimates increase by 11%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$9.87b to US$9.60b. EPS estimate rose from US$5.81 to US$6.43. Net income forecast to shrink 48% next year vs 4.3% growth forecast for Oil and Gas industry in the US . Consensus price target of US$49.92 unchanged from last update. Share price was steady at US$57.33 over the past week. Reported Earnings • Nov 03
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: US$1.63 (up from US$1.50 loss in 3Q 2022). Revenue: US$2.13b (down 57% from 3Q 2022). Net income: US$791.0m (up US$1.52b from 3Q 2022). Profit margin: 37% (up from net loss in 3Q 2022). The move to profitability was driven by lower expenses. Revenue missed analyst estimates by 8.8%. Earnings per share (EPS) exceeded analyst estimates by 63%. Revenue is forecast to stay flat during the next 3 years compared to a 1.2% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 55% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Oct 28
Cheniere Energy Partners, L.P. Declares Cash Distribution, Payable on November 14, 2023 Cheniere Energy Partners, L.P. declared a cash distribution of $1.03 per common unit to unitholders of record as of November 6, 2023, comprised of a base amount equal to $0.775 and a variable amount equal to $0.255, and the related distribution to its general partner. These distributions are payable on November 14, 2023. New Risk • Aug 14
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 19% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 19% per year for the foreseeable future. Minor Risks Negative equity (-US$1.0b). Major Estimate Revision • Aug 10
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$10.5b to US$10.0b. EPS estimate also fell from US$6.26 per share to US$5.58 per share. Net income forecast to shrink 24% next year vs 17% decline forecast for Oil and Gas industry in the US. Consensus price target of US$49.50 unchanged from last update. Share price fell 4.1% to US$49.45 over the past week. Tillkännagivande • Aug 04
Cheniere Energy Partners, L.P. Reconfirms 2023 Distribution Guidance Cheniere Energy Partners, L.P. Reconfirming full year 2023 distribution guidance of $4.00 - $4.25 per common unit. Reported Earnings • Aug 04
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: US$1.29 (up from US$0.25 in 2Q 2022). Revenue: US$1.93b (down 54% from 2Q 2022). Net income: US$622.0m (up 418% from 2Q 2022). Profit margin: 32% (up from 2.9% in 2Q 2022). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 16%. Earnings per share (EPS) also missed analyst estimates by 5.2%. Revenue is expected to fall by 6.7% p.a. on average during the next 3 years compared to a 3.8% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Jul 29
Cheniere Energy Partners, L.P. Declares Quarterly Distribution, Payable on August 14, 2023 Cheniere Energy Partners, L.P. declared a cash distribution of $1.03 per common unit to unitholders of record as of August 7, 2023, comprised of a base amount equal to $0.775 and a variable amount equal to $0.255, and the related distribution to its general partner. These distributions are payable on August 14, 2023. Tillkännagivande • Jun 07
Cheniere Energy Partners, L.P. announced a financing transaction Cheniere Energy Partners, L.P. announced that it will issue Senior Notes due 2033 on June 6, 2023. The company will issue non-convertible debt in the transaction. The CQP 2033 Notes will bear interest at a rate of 5.95% per annum and will mature on June 30, 2033. The CQP 2033 Notes were issued at a price equal to 99.774% of par, and the closing of the offering is expected to occur on June 21, 2023. Recent Insider Transactions • May 28
Executive VP recently sold US$351k worth of stock On the 25th of May, J. Grindal sold around 8k shares on-market at roughly US$45.93 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was J.'s only on-market trade for the last 12 months. Major Estimate Revision • May 09
Consensus EPS estimates increase by 41%, revenue downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast fell from US$11.1b to US$10.5b. EPS estimate rose from US$4.15 to US$5.87. Net income forecast to shrink 1.3% next year vs 20% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$53.00. Share price was steady at US$45.00 over the past week. Reported Earnings • May 03
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: US$4.00 (up from US$0.11 loss in 1Q 2022). Revenue: US$2.92b (down 12% from 1Q 2022). Net income: US$1.94b (up US$1.99b from 1Q 2022). Profit margin: 66% (up from net loss in 1Q 2022). The move to profitability was driven by lower expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates significantly. Revenue is expected to fall by 3.7% p.a. on average during the next 3 years compared to a 4.9% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Buying Opportunity • Mar 17
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 27%. The fair value is estimated to be US$53.97, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 37% over the last 3 years. Earnings per share has declined by 8.9%. For the next 3 years, revenue is forecast to decline by 13% per annum. Earnings is forecast to grow by 4.8% per annum over the same time period. Major Estimate Revision • Mar 16
Consensus EPS estimates fall by 13% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate fell from US$5.09 to US$4.44. Revenue forecast unchanged from US$11.5b at last update. Net income forecast to grow 60% next year vs 4.5% decline forecast for Oil and Gas industry in the US. Consensus price target broadly unchanged at US$53.47. Share price fell 6.1% to US$46.00 over the past week. Reported Earnings • Feb 24
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: US$3.27 (up from US$3.00 in FY 2021). Revenue: US$17.2b (up 82% from FY 2021). Net income: US$1.58b (up 9.2% from FY 2021). Profit margin: 9.2% (down from 15% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 5.8%. Earnings per share (EPS) also surpassed analyst estimates by 26%. Revenue is expected to fall by 16% p.a. on average during the next 3 years compared to a 5.8% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Tillkännagivande • Jan 28
Cheniere Energy Partners, L.P Declares Cash Distribution, Payable on February 14, 2023 Cheniere Energy Partners, L.P declared (i) a cash distribution of $1.07 per common unit to unitholders of record as of February 6, 2023, comprised of a base amount equal to $0.775 and a variable amount equal to $0.295, and (ii) the related distribution to its general partner. These distributions are payable on February 14, 2023. Recent Insider Transactions Derivative • Dec 11
Board Member exercised options and sold US$86k worth of stock On the 7th of December, Vincent Pagano exercised options to acquire 2k shares at no cost and sold these for an average price of US$57.18 per share. This trade did not impact their existing holding. Since March 2022, Vincent has owned 8.63k shares directly. Company insiders have collectively sold US$438k more than they bought, via options and on-market transactions in the last 12 months. Board Change • Nov 16
Less than half of directors are independent There are 6 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director of Cheniere Energy Partners GP LLC Vincent Pagano was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 04
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: US$1.06 loss per share (down from US$0.69 profit in 3Q 2021). Revenue: US$4.98b (up 114% from 3Q 2021). Net loss: US$514.0m (down 253% from profit in 3Q 2021). Revenue exceeded analyst estimates by 14%. Earnings per share (EPS) missed analyst estimates. Revenue is expected to fall by 13% p.a. on average during the next 3 years compared to a 6.2% decline forecast for the Oil and Gas industry in the US. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Tillkännagivande • Oct 25
Cheniere Energy Partners, L.P. Declares Quarterly Cash Distribution, Payable on November 14, 2022 Cheniere Energy Partners, L.P. declared a cash distribution of $1.07 per common unit to unitholders of record as of November 3, 2022, comprised of a base amount equal to $0.775 and a variable amount equal to $0.295, and the related distribution to its general partner. These distributions are payable on November 14, 2022. Buying Opportunity • Oct 07
Now 21% undervalued Over the last 90 days, the stock is up 27%. The fair value is estimated to be US$69.55, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to decline by 12% per annum. Earnings is also forecast to decline by 5.9% per annum over the same time period. Tillkännagivande • Sep 22
Cheniere Energy, Inc. and Cheniere Energy Partners, L.P. Announce the Promotion of Corey Grindal to Executive Vice President and Chief Operating Officer, Effective January 2, 2023 Cheniere Energy, Inc. and Cheniere Energy Partners, L.P. announced the promotion of Corey Grindal to Executive Vice President and Chief Operating Officer, effective January 2, 2023. As Executive Vice President and Chief Operating Officer, Grindal will lead the Operations, Engineering and Construction, Shared Services and Worldwide Trading organizations within Cheniere. In his new role, he will continue to report to Jack Fusco, President and Chief Executive Officer. Grindal will also serve as Executive Vice President and Chief Operating Officer at Cheniere Partners. Grindal will relocate back to Houston from London, where he has served as Executive Vice President, Worldwide Trading since 2020. Grindal joined Cheniere in 2013 and led the Gas Supply organization for the Company, which is one of the largest holders of pipeline capacity and purchasers of natural gas in the United States. Buying Opportunity • Sep 16
Now 21% undervalued Over the last 90 days, the stock is up 20%. The fair value is estimated to be US$68.68, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to decline by 13% per annum. Earnings is also forecast to decline by 4.4% per annum over the same time period. Recent Insider Transactions Derivative • Sep 11
Board Member exercised options and sold US$82k worth of stock On the 7th of September, Oliver Richard exercised options to acquire 2k shares at no cost and sold these for an average price of US$54.66 per share. This trade did not impact their existing holding. Since March 2022, Oliver's direct individual holding has increased from 11.25k shares to 14.25k. Company insiders have collectively sold US$414k more than they bought, via options and on-market transactions in the last 12 months. Buying Opportunity • Aug 30
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.1%. The fair value is estimated to be US$67.50, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to decline by 9.7% per annum. Earnings is also forecast to decline by 3.0% per annum over the same time period. Reported Earnings • Aug 05
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: US$0.71 (down from US$0.73 in 2Q 2021). Revenue: US$4.18b (up 121% from 2Q 2021). Net income: US$342.0m (down 3.7% from 2Q 2021). Profit margin: 8.2% (down from 19% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to stay flat compared to a 13% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 2% per year. Tillkännagivande • Aug 05
Cheniere Energy Partners, L.P. Provides Distribution Guidance for the Year 2022 Cheniere Energy Partners, L.P. provided distribution guidance for the year 2022. For the year, the company expects to pay distribution per unit of $4.00 to $4.25. Tillkännagivande • Jul 26
Cheniere Energy Partners, L.P. Declares Quarterly Distribution, Payable on August 12, 2022 Cheniere Energy Partners, L.P. declared (i) a cash distribution of $1.06 per common unit to unitholders of record as of August 4, 2022, comprised of a base amount equal to $0.775 and a variable amount equal to $0.285, and (ii) the related distribution to its general partner. These distributions are payable on August 12, 2022. Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to US$45.43, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 8x in the Oil and Gas industry in the US. Total returns to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$62.57 per share. Buying Opportunity • Jun 10
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.3%. The fair value is estimated to be US$64.78, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 0.6% in 2 years. Earnings is forecast to grow by 126% in the next 2 years. Recent Insider Transactions • Jun 08
Board Member recently sold US$168k worth of stock On the 3rd of June, James Ball sold around 3k shares on-market at roughly US$54.48 per share. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Recent Insider Transactions Derivative • Jun 03
Board Member exercised options and sold US$62k worth of stock On the 29th of May, Ellis McCain exercised options to acquire 1k shares at no cost and sold these for an average price of US$55.22 per share. This trade did not impact their existing holding. Since March 2022, Ellis has owned 9.75k shares directly. Company insiders have collectively sold US$249k more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • May 11
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$11.3b to US$13.2b. EPS estimate fell from US$4.04 to US$3.94. Net income forecast to grow 114% next year vs 79% growth forecast for Oil and Gas industry in the US. Consensus price target up from US$49.81 to US$51.63. Share price fell 12% to US$50.79 over the past week. Buying Opportunity • May 10
Now 20% undervalued Over the last 90 days, the stock is up 9.3%. The fair value is estimated to be US$66.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 2.0% in 2 years. Earnings is forecast to grow by 121% in the next 2 years. Reported Earnings • May 05
First quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2022 results: EPS: US$0.33 (down from US$0.64 in 1Q 2021). Revenue: US$3.33b (up 70% from 1Q 2021). Net income: US$159.0m (down 49% from 1Q 2021). Profit margin: 4.8% (down from 16% in 1Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 20%. Earnings per share (EPS) missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 1.9%, compared to a 24% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 10% per year, which means it is tracking significantly ahead of earnings growth. Tillkännagivande • May 05
Cheniere Energy Partners, L.P. Reaffirms Dividend Guidance for the Year 2022 Cheniere Energy Partners, L.P. reaffirmed dividend guidance for the year 2022. For full year 2022 distribution guidance of $4.00 per common unit to $4.25 per common unit. Board Change • Apr 27
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 independent directors. 7 non-independent directors. Independent Director of Cheniere Energy Partners GP LLC Vincent Pagano was the last independent director to join the board, commencing their role in 2012. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Tillkännagivande • Apr 26
Cheniere Energy Partners, L.P. Declares Cash Distribution, Payable on May 13, 2022 Cheniere Energy Partners, L.P. declared a cash distribution of $1.05 per common unit to unitholders of record as of May 5, 2022, comprised of a base amount equal to $0.775 and a variable amount equal to $0.275, and the related distribution to its general partner. These distributions are payable on May 13, 2022. Buying Opportunity • Mar 15
Now 25% undervalued Over the last 90 days, the stock is up 23%. The fair value is estimated to be US$64.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.1% per annum over the last 3 years. Earnings per share has been flat over the last 3 years. Major Estimate Revision • Mar 03
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$9.60b to US$11.1b. EPS estimate reaffirmed at US$3.94. Net income forecast to grow 39% next year vs 60% growth forecast for Oil and Gas industry in the US. Consensus price target up from US$44.94 to US$46.12. Share price rose 16% to US$55.29 over the past week. Reported Earnings • Feb 26
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: US$3.37 (up from US$2.20 in FY 2020). Revenue: US$9.43b (up 53% from FY 2020). Net income: US$1.63b (up 53% from FY 2020). Profit margin: 17% (in line with FY 2020). Revenue exceeded analyst estimates by 11%. Earnings per share (EPS) also surpassed analyst estimates by 5.5%. Over the next year, revenue is forecast to grow 7.1%, compared to a 19% growth forecast for the oil industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 7% per year. 
