Summary
Sempra Energy (SRE) reported a decrease in net income for the three months ended September 30, 2015, to $248 million ($0.99 per diluted share) from $348 million ($1.39 per diluted share) in the same period of 2014. This decline was primarily driven by a $113 million reduction in earnings at Southern California Gas Company (SoCalGas) due to the adoption of seasonal revenue recognition, impacting quarterly comparisons. Despite the quarterly dip, year-to-date net income increased by 13% to $980 million ($3.91 per diluted share) for the nine months ended September 30, 2015, compared to $864 million ($3.45 per diluted share) in the prior year. This year-to-date growth was supported by stronger performance in the California Utilities (excluding SoCalGas' seasonal impact), Sempra Mexico's pipeline earnings, and a gain from the sale of an asset by Sempra Natural Gas. Operationally, Sempra Energy is navigating a complex regulatory environment, particularly with the California Public Utilities Commission (CPUC) impacting its California Utilities. Significant capital expenditure plans are underway, including a substantial investment in Mexico for IEnova's acquisition of a stake in Gasoductos de Chihuahua and ongoing development of LNG and renewable energy projects. The company's credit facilities were amended and restated in October 2015 to provide $1 billion for Sempra Energy, $2.21 billion for Sempra Global, and $1 billion for the California Utilities, ensuring liquidity. Key risks include regulatory changes, commodity price volatility, and the execution of large-scale capital projects.
Financial Highlights
49 data points| Revenue | $2.48B |
| Interest Expense | $143.00M |
| Net Income | $248.00M |
| EPS (Basic) | $0.50 |
| EPS (Diluted) | $0.49 |
| Shares Outstanding (Basic) | 496.80M |
| Shares Outstanding (Diluted) | 502.00M |
Key Highlights
- 1Three-month net income decreased by 29% to $248 million, with diluted EPS falling to $0.99.
- 2Nine-month net income increased by 13% to $980 million, with diluted EPS rising to $3.91.
- 3SoCalGas experienced a significant quarterly earnings decline due to the adoption of seasonal revenue recognition, impacting year-over-year comparisons.
- 4Sempra Natural Gas reported a $36 million gain from the sale of the Mesquite Power plant's remaining block.
- 5Sempra Mexico saw increased pipeline earnings, partly from new operations and AFUDC, partially offset by lower earnings at Mexicali power plant and a 2014 gain on sale.
- 6Credit facilities for Sempra Energy, Sempra Global, and California Utilities were amended and restated in October 2015, ensuring continued liquidity.
- 7Significant capital expenditure plans are in progress across various segments, including a major acquisition in Mexico and LNG/renewable energy projects.