Venture Global VG lowered its current-year forecast and missed first-quarter estimates for core profit on Tuesday, due to higher operating costs at the LNG producer’s projects.

Shares of Venture, which became one of the most valuable U.S. LNG companies when it listed in January, fell more than 7% in premarket trading.

The LNG producer has been grappling with high project costs, prompting it to raise the Plaquemines project’s budget forecast in March.

These expenses could further increase as U.S. President Donald Trump’s import tariffs on steel and aluminum are likely to drive up equipment costs.

Venture lowered its current-year adjusted core profit, or EBITDA, forecast to between $6.4 billion and $6.8 billion from between $6.8 billion and $7.4 billion. The midpoint, however, was still above Wall Street expectations of $6.54 billion, according to data compiled by LSEG.

Its adjusted core profit for the first quarter was $1.35 billion, missing estimates of $1.38 billion, weighed down by higher operating costs related to ramping up LNG production at Plaquemines project and commercialization of the Calcasieu project.

The company’s quarterly operating and maintenance expenses more than doubled to $252 million from a year earlier.

“We view the release as mixed…somewhat overshadowed by a larger downward revision to FY25 EBITDA guidance than what might have been expected, though tariff impacts to CP2 are minimal,” said Scotiabank analyst Brandon Bingham.

Last month, Venture began commercial operations at Calcasieu Pass project, providing relief to the company after being locked up in contract disputes with customers.

The Calcasieu Pass plant had faced multiple delays over three years, caused by the global pandemic, two hurricanes and a force majeure event triggered by issues with the facility’s power island.
Source: Reuters