Venture Global (VG) reported two financial hits just as it prepared to hold its first earnings call following its IPO in January, as its share price, year to date, has fallen by roughly 60% as of March 7.

The LNG company expects the construction cost of the Plaquemines plant in Louisiana to come in between $23.3 billion and $23.8 billion, around $2 billion higher than original estimates.

By the end of 2024, VG had spent $19.8 billion on the plant, which shipped its first cargo in December. Phase I at the plant is expected to be complete by the end of 2026, Venture Global told investors on March 6. VG announced a $21 billion financial investment decision for the two-phase Plaquemines facility in March 2023.

The company also reported an adjusted core profit of $700 million for the first quarter. The result fell below analysts' average estimate of $1.34 billion.

VG’s stock price slumped when the market opened, falling 36% from $14.23 to $9.10 at the closing bell. The stock’s plummet was exacerbated by the company’s announcement on the afternoon of March 6 that is planned an $18 billion brownfield expansion at Plaquemines.

Venture Global became one of the most valuable U.S. LNG companies after it held its IPO, raising about $1.75 billion. However, the public premier fell short of VG’s expectations. The company had originally pitched a $110 billion valuation, which it later revised to about $65 billion.

After the Jan. 24 IPO, share prices opened at $24.05. The company’s market capitalization as of March was about $23 billion.

Despite missing its quarterly market forecast, company executives have remained positive about its future growth.

In February, the U.S. Federal Energy Regulatory Commission permitted VG to expand the Plaquemines plant’s overall export capacity to 27.2 million tonnes per annum (mtpa) from 24 mtpa.

On March 6, the company announced it planned to eventually increase Plaquemines’ capacity to 45 mtpa with the addition of another 24 liquefaction trains.

The LNG company reported a net income of $871 million for the first quarter. As a private company last year, VG posted a loss of $50 million.

“Venture Global is proud to present our inaugural earnings report, which demonstrates tremendous growth. We have achieved strong results as we continued to reach important milestones across our projects,” Venture Global CEO Mike Sabel said in the company earnings release.

Plaquemines and Calcasieu, VG’s other LNG facility, are expected to ship between 359 and 387 LNG cargoes in 2025, the company reported.

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