Summary
Sempra Energy (SRE) reported its third-quarter results for the period ending September 29, 2022. The company saw a significant increase in revenues, driven by higher natural gas and electric utility revenues, as well as strong performance in its energy-related businesses. Net income attributable to common shareholders improved substantially compared to the same period in the prior year, largely due to a considerable decrease in litigation and regulatory charges related to the Aliso Canyon leak at Southern California Gas Company (SoCalGas). Operationally, Sempra Infrastructure demonstrated growth, though it was impacted by foreign currency and inflation effects. The company continued its strategic investments in infrastructure, with significant capital expenditures across its segments, particularly in renewable energy and LNG projects. Sempra's utilities, San Diego Gas & Electric (SDG&E) and SoCalGas, benefited from regulatory mechanisms allowing for cost recovery and capital investment. The company reaffirmed its liquidity position and access to capital markets, while also managing interest rate and commodity price risks through various hedging instruments.
Financial Highlights
45 data points| Revenue | $3.62B |
| Interest Expense | $282.00M |
| Net Income | $485.00M |
| EPS (Basic) | $0.77 |
| EPS (Diluted) | $0.77 |
| Shares Outstanding (Basic) | 629.45M |
| Shares Outstanding (Diluted) | 632.17M |
Key Highlights
- 1Sempra reported a significant year-over-year improvement in net income attributable to common shareholders, primarily driven by a substantial reduction in Aliso Canyon leak-related charges at SoCalGas.
- 2Total revenues increased by 20% year-over-year to $3.6 billion for the three months ended September 30, 2022, with all segments contributing to the growth.
- 3SDG&E's earnings increased by 32% year-over-year, attributed to higher operating margin and lower income tax expenses.
- 4SoCalGas transitioned from a net loss of $1.1 billion in Q3 2021 to net income of $339 million in Q3 2022, largely due to a significant decrease in leak-related charges.
- 5Sempra Infrastructure earnings decreased by 30% year-over-year, impacted by noncontrolling interests and foreign currency effects, despite higher earnings from asset optimization and TdM.
- 6Capital expenditures for the nine months ended September 30, 2022, were $3.8 billion, consistent with the prior year, with significant investments continuing across all segments.
- 7Sempra maintained investment-grade credit ratings, although some outlooks were noted as 'negative' by S&P, impacting the company's cost of capital and financing access.