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Carl Icahn's latest target hasn't turned a profit in two decades

Aug 7, 2015, 22:15 IST

Billionaire activist-investor Carl IcahnREUTERS/Brendan McDermid

Billionaire activist investor Carl Icahn has set his sights on a new target: an unprofitable energy company.

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Icahn has taken a 8.18% stake in natural gas exporter Cheniere Energy, according to a 13D regulatory filing published on Thursday.

The investment comes amid a collapse in oil prices and the commodities market more broadly.

Icahn's firm has lost hundreds of millions of dollars on energy investments in the likes of Talisman Energy and Chesapeake Energy this year alone, Bloomberg reports.

That makes the investment in Cheniere, which according to Bloomberg hasn't been profitable for more than 20 years, a surprising one.

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Icahn believes the Cheniere's shares are undervalued, according to the filing.

He plans to speak with the board about operations, capital expenditures, financings, and executive compensation. He may also seek shareholder board representation "if appropriate."

Cheniere is currently building export complexes to ship gas abroad, and is hoping to begin exporting by later this year. It spent much of the last decade doing the exact opposite: expecting a gas supply shortage, the company had built import terminals.

We've reached out to Icahn Enterprises and Cheniere Energy for comment and will update if we hear back.

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