Venture Global Stock Tumbles Almost 20%. It Just Lost This Bust Up With BP.

A liquefied natural gas tanker approaches a terminal in the U.K. (Dan Kitwood/Getty Images)

Key Points

• Venture Global stock dropped 19% to $10.25 after losing an arbitration case to BP regarding withheld liquefied natural gas cargoes.
• BP is seeking over $1 billion in damages, interest, costs, and attorneys’ fees from Venture Global.
• The ruling could significantly impact Venture Global’s projected earnings before interest, taxes, depreciation, and amortization of $6.4 billion to $6.8 billion.

Venture Global stock was plummeting on Friday after the natural-gas exporter said it had lost an arbitration case against one of its own customers, BP.

Shares, which trade under the ticker VG, dropped 19% to $10.25 ahead of the opening bell. BP’s American depositary receipts were 0.2% lower. Futures tracking the S&P 500 were flat.

The selloff came after Venture Global said in a regulatory filing that on Oct. 8, the International Court of Arbitration issued a partial final award to BP. The British oil major and several other customers have accused Venture Global of withholding contracted liquefied natural gas cargoes, and instead selling them on the spot market to benefit from a surge in prices that’s been driven by the war in Ukraine.

BP is seeking damages of more than $1 billion, as well as interest, costs and attorneys’ fees. Remedies will be determined in a separate damages hearing, which Venture Global said it expects will take place in 2026.

Venture Global has previously guided that it will report earnings before interest, taxes, depreciation and amortization of between $6.4 billion and $6.8 billion for the current year, so the ruling could end up being a significant blow to its profit.

The company went public via an initial public offering in January. Shares have tumbled 58% since then.

Write to George Glover at george.glover@dowjones.com