SEMPRA Quarterly Report for Q2 Ended Jun 30, 2023

Summary

Sempra Energy (SRE) reported its second quarter 2023 financial results, showcasing a significant increase in net income attributable to common shares, reaching $603 million ($1.91 EPS) compared to $559 million ($1.78 EPS) in the same period last year. The six-month period also demonstrated strong performance with net income of $1.91 billion ($4.99 EPS) versus $1.32 billion ($3.71 EPS) year-over-year. This growth was driven by improved performance across most segments, particularly Sempra Infrastructure, which saw a substantial earnings increase due to asset optimization and growth in its transportation business, partially offset by unfavorable foreign currency impacts. The company's balance sheet reflects a notable increase in Property, plant and equipment, net, to $51.5 billion from $47.8 billion at year-end 2022, indicating ongoing investment in infrastructure. Total assets grew to $82.7 billion. Management highlighted strong liquidity with $1.1 billion in cash and cash equivalents and $1.2 billion in total cash, cash equivalents, and restricted cash as of June 30, 2023, alongside substantial available unused credit facilities.

Key Highlights

• 1Sempra reported a 7.5% increase in net income attributable to common shares for the three months ended June 30, 2023, reaching $603 million, or $1.91 per diluted share, compared to $559 million, or $1.77 per diluted share, in the prior year's second quarter.
• 2For the six months ended June 30, 2023, net income attributable to common shares grew by 29.4% to $1.57 billion, or $4.97 per diluted share, up from $1.17 billion, or $3.70 per diluted share, in the same period of 2022.
• 3Sempra Infrastructure segment earnings increased by 13.7% for the quarter and a significant 89.6% for the six-month period, driven by asset and supply optimization, including favorable commodity derivative impacts, and growth in the transportation business.
• 4Total assets increased to $82.7 billion as of June 30, 2023, up from $78.6 billion at December 31, 2022, with Property, plant and equipment, net, rising to $51.5 billion.
• 5The company maintained strong liquidity, with $1.24 billion in cash, cash equivalents, and restricted cash at June 30, 2023, and substantial available unused credit facilities totaling $7.4 billion.
• 6SoCalGas experienced a significant earnings increase of $68 million (78%) in the quarter, primarily due to a charge in the prior year related to litigation and higher income tax benefits.
• 7The company announced a two-for-one stock split in the form of a stock dividend, effective August 21, 2023, demonstrating confidence in future performance.

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