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10-QPeriod: Q3 FY2020

SEMPRA Quarterly Report for Q3 Ended Sep 30, 2020

Filed November 5, 2020For Securities:SRESREA

Summary

Sempra Energy (SRE) reported its third quarter 2020 financial results, showcasing a significant year-over-year increase in earnings attributable to common shares for the nine-month period, driven primarily by the completion of its South American business divestitures and strong performance from its LNG ventures. For the three months ended September 30, 2020, Sempra Energy reported earnings of $351 million ($1.21 per diluted share), a decrease from $813 million ($2.84 per diluted share) in the prior year's quarter. This decrease was largely influenced by the absence of the prior year's favorable retroactive application of regulatory rate case decisions and ongoing litigation costs at SoCalGas. However, for the nine months ended September 30, 2020, earnings significantly increased to $3.35 billion ($11.43 per diluted share) from $1.61 billion ($5.74 per diluted share) in the same period of 2019, boosted by substantial gains from the sale of South American operations and improved equity earnings from its Cameron LNG joint venture. The company's liquidity remains solid, supported by substantial cash and cash equivalents and available credit facilities, despite the ongoing impacts of the COVID-19 pandemic on the broader economy.

Financial Statements
Beta
Revenue$2.64B
Operating Income$428.00M
Interest Expense$264.00M
Net Income$351.00M
EPS (Basic)$0.60
EPS (Diluted)$0.60
Shares Outstanding (Basic)578.98M
Shares Outstanding (Diluted)581.16M

Key Highlights

  • 1Nine-month earnings surged to $3.35 billion ($11.43 EPS) from $1.61 billion ($5.74 EPS) in the prior year, driven by South American divestitures and LNG projects.
  • 2Q3 2020 earnings were $351 million ($1.21 EPS), down from $813 million ($2.84 EPS) in Q3 2019, impacted by the absence of prior-year rate case benefits and SoCalGas litigation costs.
  • 3Capital expenditures for the full year 2020 are projected at $5.6 billion, a slight decrease from prior projections, reflecting project adjustments.
  • 4Sempra Energy completed its South American business sales in Q2 2020, realizing significant gains and repositioning its strategic focus on North America.
  • 5The company's liquidity remains robust with $3.5 billion in cash and cash equivalents and substantial available credit facilities as of September 30, 2020.
  • 6Credit ratings were maintained at investment grade levels, though some outlooks were revised to negative by Moody's and S&P.
  • 7SoCalGas continues to manage significant costs and potential liabilities related to the Aliso Canyon natural gas storage facility leak, with an estimated cost of $1.44 billion.

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