LNG Terminal Financial Model 20 Year Template

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20x Income Statements, Cash Flow Statements, Balance Sheets, CAPEX Sheets, OPEX Sheets, Statement Summary Sheets, and Revenue Forecasting Charts with the specified revenue streams, BEA charts, sales summary charts, employee salary tabs and expenses sheets. 130 Spreadsheets and Charts.

The Income Statement (Profit & Loss)

The Income Statement shows the project’s profitability over a period. For an LNG terminal, it often shows heavy losses initially due to high depreciation and interest, before turning profitable.

Line Items:

Revenue:
- Capacity (or Reservation) Revenue: = (Contracted Capacity) * (Tolling Rate). This is the core, guaranteed revenue.
- Usage (or Commodity) Revenue: = (Actual Throughput Volume) * (Usage Fee).
- Other Revenue: Boil-off Gas (BOG) sales, interruptible services.
Operating Expenses (OpEx):
- Fixed Operating Costs: As defined in assumptions.
- Variable Operating Costs: = (Throughput Volume) * (Variable Cost per unit).
- Maintenance Capital Expenditure: Treated as an expense in project finance models to reflect the ongoing capital needed to maintain capacity. This is a key cash flow item.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
- = Revenue – OpEx (excluding D&A). This is a critical metric for lenders to assess cash generation available for debt service.
Depreciation & Amortization (D&A):
- Calculated using a straight-line method over the asset’s useful life (e.g., 25-30 years). The asset base is Total CapEx + Capitalized Interest.
Operating Income (EBIT):
- = EBITDA.
Interest Expense:
- During Construction: Capitalized (added to Balance Sheet asset).
- During Operation: Expensed on the Income Statement. Calculated on the outstanding debt balance.
Pre-Tax Income:

= EBIT Interest Expense
Taxes:
- = Pre-Tax Income * Corporate Tax Rate. Often complex due to tax incentives, depreciation shields, and carried-forward losses in early years.
Net Income:
- = Pre-Tax Income – Taxes . This is the project’s accounting profit.

The Cash Flow Statement

The Cash Flow Statement is the most critical part for project finance. It tracks the actual movement of cash and is the basis for calculating the all-important Debt Service Cover Ratios (DSCR).

Line Items (using the indirect method):

Cash Flow from Operating Activities:
- Start with: Net Income
- Add back: Non-Cash Charges (Depreciation, Amortization).
- Adjust for changes in: Working Capital (Receivables, Payables, Inventory). For an LNG SPV, this is often minimal due to the stable, contracted nature of the business.
- = Cash Generated from Operations.
Cash Flow from Investing Activities:
- Capital Expenditures (CapEx): Outflows for construction and maintenance CapEx.
- = Total Cash Used in Investing Activities.
Cash Flow from Financing Activities:
- Equity Inflows: Cash from sponsors.
- Debt Drawdowns: Cash from lenders during construction.
- Debt Service: Outflows for Principal Repayments and Interest Payments.
- Dividends / Distributions: Cash outflows to equity investors (only made after debt covenants are met).
- = Total Cash from Financing Activities.
Net Change in Cash: CFO + CFI + CFF

Key Outputs from the Cash Flow Statement:
- Free Cash Flow (FCF): = Cash from Operations – Maintenance CapEx. This is the cash available for all investors (lenders and equity).
- Cash Available for Debt Service (CADS): Often similar to FCF in a simple model.
- Debt Service Cover Ratio (DSCR): = CADS / Total Debt Service (Principal + Interest). This is the primary covenant monitored by lenders. A DSCR of >1.30x is often required.
- Loan Life Cover Ratio (LLCR): = NPV of Future CADS / Outstanding Debt. A measure of the project’s ability to repay the entire loan over its life.

The Balance Sheet

The Balance Sheet provides a snapshot of the project’s financial position at a specific point in time, showing what it owns (Assets), owes (Liabilities), and its net worth (Equity).

Line Items:

ASSETS

Non-Current Assets:
- Property, Plant & Equipment (PP&E): This is the main asset. It starts at zero, increases by CapEx and Capitalized Interest during construction, and is reduced annually by Depreciation.
Current Assets:
- Cash & Cash Equivalents: The final line from the Cash Flow Statement.
- Accounts Receivable: Money owed by off-takers for services rendered.
- Prepaid Expenses, etc.

LIABILITIES AND EQUITY

Non-Current Liabilities:
- Long-Term Debt: The outstanding principal of the project loan. It increases with drawdowns and decreases with principal repayments.
Current Liabilities:
- Current Portion of Long-Term Debt: The principal due for repayment in the next 12 months.
- Accounts Payable: Money owed to vendors.
Equity:
- Paid-in Capital / Shareholder Equity: The cumulative equity contributions from sponsors.
- Retained Earnings: The cumulative Net Income less any dividends paid out.

Integration, Outputs, and Sensitivity Analysis

Integration: The three statements are dynamically linked.
- Net Income from the Income Statement flows into Retained Earnings on the Balance Sheet and is the starting point for the Cash Flow Statement.
- The ending Cash balance from the Cash Flow Statement becomes the Cash asset on the Balance Sheet.
- CapEx from the Cash Flow Statement adds to the PP&E on the Balance Sheet.
Key Outputs & Metrics:
- Project IRR (Internal Rate of Return): The return on the total project cost.
- Equity IRR: The return to the equity investors. This is the primary metric for sponsors.
- Payback Period: The time it takes for the project to return the initial investment.
- Average and Minimum DSCR/LLCR.
Sensitivity Analysis: The model is tested against changes in key assumptions to understand risks. Common sensitivity variables include:
- Construction Cost Overruns (+10-20% CapEx).
- Delay in Project Completion (6-12 months).
- Lower Throughput/Utilization Rates.
- Increase in Interest Rates.
- Changes in OpEx (e.g., fuel gas costs).

This comprehensive financial model provides a rigorous, quantitative framework for deciding whether to proceed with a multi-billion dollar LNG terminal investment, ensuring all stakeholders have a clear understanding of the financial risks and rewards.

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