Revenue Analysis
Total and Operating Revenue: Over the observed periods, there was an increase in Total Revenue from $4,102 million in 2023-06-30 to $4,853 million by 2023-12-31, showing growth in market reach and business size. A slight dip was seen in 2024-03-31 to $4,253 million. Operating Revenues followed a similar trajectory.
Gross Profit Margins: Gross Profit also increased, from $2,406 million in 2023-06 to $2,633 million in 2023-12, before slightly decreasing to $1,264 million in 2024-03. This indicates a varying cost structure or sales pricing strategy over time.
Cost Management
Cost of Revenue: Cost of Revenue significantly varied, with $1,699 million in 2023-06 then increasing to $2,190 million in 2023-12 and further extending to $2,989 million in 2024-03, suggesting rising production or procurement costs.
Operating Expense and Total Expenses: Operating Expenses were relatively stable but saw an overall increase. Total Expenses followed the revenue trend with a peak at $2,388 million in 2023-12 before rising to $3,099 million by 2024-03.
Profitability Analysis
EBITDA and Operating Income: EBITDA peaked at $3,115 million in 2023-09, evidencing strong operational performance. Operating Income showed optimal performance in the same quarter at $2,755 million.
Pretax Income and Net Income: The Pretax Income and Net Income Metrics consistently show healthy profitability peaking in 2023-09 at $2,531 million and $1,701 million respectively before experiencing a downturn in 2024-03.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses remained steady ranging around $297 million to $304 million, indicating consistent capital expenditure on assets.
Interest Expense: Interest Expenses saw a minor fluctuation but generally indicated considerable financial costs ranging from $266 million to $291 million.
Taxation
Tax Rate and Tax Provision: Tax rates varied across the periods, having a substantial impact on net income with Tax Provisions ranging up to $400 million in 2023-12.
Tax Effect of Unusual Items: Notably, there were minimal to no effects from unusual items, indicating typical ongoing operations without significant one-time fiscal impacts.
Shareholder Metrics
Diluted and Basic EPS: Earnings Per Share (EPS) showed a high in 2023-09 at 7.03 diluted and 7.08 basic, corresponding with the high net income during that quarter. This reflects favorably on shareholder value generation.
Average Shares and Net Income Available to Common Stockholders: Average shares stayed within a range of 234.2 million to 245.8 million, with Net Income to Common Stockholders mirroring the net income trends.
Conclusion
Reviewing the past fiscal records, LNG has demonstrated strong revenue and profitability performance, notably peaking in the latter half of 2023. However, the recent dip in metrics in 2024 suggests a need to strategize against rising costs and diminished profit margins. Continued monitoring of expense management and profitability indicators will be crucial for maintaining financial health and shareholder value.