Insititution
Cheniere Energy is a company based in US, that caters to the needs of gas requirements for various purposes. After studying the financial statements, the on going operations should be expanded and a larger customer base should be created. New technology and volatility in the rates shows a steep fall in the demand and consumption of gas, the future predictions also do not show a rise. . This year the company dropped the plan to issue $30 million shares to pay its employees that subsequently gave a rise to the share value of the company. The revenues of the company have been steadily increasing, it has improved earnings per share but the return on equity shares has fallen as compared to the previous year.
Stock reports show approximately 1.4% of the company’s shares were short sold. The statement of operations show a decline in the total revenues and a steep rise in the administrative expenses. The company should try to reduce the expenses by a large extent. The company should also ensure it has adequate liquidity to pay off the long term debts. A rise in accrued liabilities is also noticed. Cheniere Energy should aim to pay off the debts and make adequate finances available for the long term debt payments. The company is financially stable and it should aim to provide a higher return on equity to the shareholders. To expand base and include additional customers to their network will help the company maintain the revenues it has. Due to falling demand of gas, the company has to ensure it takes up projects which are high in demand and to cater to the areas where the demands for gas are high. Adequate liquidity should be maintained for the payment in the long term as well as short term.
Bibliography
2013 Annual Report. (n.d.). Retrieved from Cheniere Energy Inc.: http://phx.corporate-ir.net/phoenix.zhtml?c=101667&p=irol-reports
Barnet, S. (2014, Oct 14). Short Interest in Cheniere Energy Partners drops by 3.2%. Retrieved from WKRB News and Analysis: http://www.wkrb13.com/markets/392488/short-interest-in-cheniere-energy-partners-drops-by-3-2-cqp/
Cohen, T. (2014, Jan 07). Why Cheniere Energy stock is moving high this afternoon. Retrieved from The Street: http://www.thestreet.com/story/12762919/1/why-cheniere-energy-lng-stock-is-moving-higher-this-afternoon.html
U.S gas demand. (n.d.). Retrieved from Cheniere: http://www.cheniere.com/lng_industry/us_gas_demand.shtml
