01—Abstract
Summary
Summary of the 10-Q filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Sempra reported earnings attributable to common shares of $801 milliona ($1.26 per diluted share) for the first quarter of 2024, a decrease from $969 million ($1.53 per diluted share) in the same period of 2023.
This decline was primarily driven by lower earnings from the Sempra Infrastructure segment, which was impacted by unrealized losses on commodity derivatives and lower LNG diversion fees. Sempra California's earnings also saw a slight decrease due to higher net interest expense and lower income tax benefits. Despite the year-over-year earnings decline, the company's operating cash flows remained robust.
Sempra California, comprising SDG&E and SoCalGas, demonstrated stability in its regulated utility operations, benefiting from regulatory mechanisms for cost recovery. Sempra Texas Utilities showed significant earnings growth, driven by favorable rate updates and increased invested capital at Oncor Holdings. The company's balance sheet remains strong, with substantial available liquidity through committed credit facilities and ample unused credit capacity, providing flexibility for future capital expenditures and operational needs.
02—Key points
Key Highlights
- Earnings attributable to common shares decreased to $801 million ($1.26/diluted share) in Q1 2024 from $969 million ($1.53/diluted share) in Q1 2023.
- Sempra California (SDG&E and SoCalGas) earnings decreased by $36 million, primarily due to higher net interest expense and lower income tax benefits.
- Sempra Texas Utilities earnings increased by $100 million, driven by higher equity earnings from Oncor Holdings due to rate updates and new base rates.
- Sempra Infrastructure earnings decreased by $184 million, largely due to unfavorable changes in commodity derivative valuations and lower LNG diversion fees.
- Operating cash flows remained strong at $1.85 billion for Sempra in Q1 2024.
- Sempra issued $600 million in junior subordinated notes, SDG&E issued $600 million in first mortgage bonds, and SoCalGas issued $500 million in first mortgage bonds during the quarter.
- The company maintains a strong liquidity position with $606 million in unrestricted cash and cash equivalents and $8.38 billion in available unused credit for Sempra as of March 31, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 7, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $3.64B$6.56B | −44.5% |
| Interest Expense | $305.00M$366.00M | −16.7% |
| Net Income | $812.00M$969.00M | −16.2% |
| EPS (Basic) | $1.27$1.54 | −17.5% |
| EPS (Diluted) | $1.26$1.53 | −17.6% |
| Shares Outstanding (Basic) | 632.82M629.84M | +0.5% |
| Shares Outstanding (Diluted) | 635.35M632.25M | +0.5% |
05—Questions
Frequently Asked Questions
What was Sempra's financial performance in Q1 2024 compared to Q1 2023?
Sempra reported a decrease in earnings attributable to common shares to $801 million ($1.26 per diluted share) in the first quarter of 2024, down from $969 million ($1.53 per diluted share) in the same period of 2023. This decline was mainly influenced by lower performance in the Sempra Infrastructure segment.
Which segments contributed most significantly to the changes in earnings?
Sempra Infrastructure experienced a significant decrease in earnings, primarily due to market factors affecting commodity derivatives and LNG diversion fees. Conversely, Sempra Texas Utilities saw a substantial increase in earnings driven by improvements at Oncor Holdings, including rate adjustments and higher invested capital.
How is Sempra's liquidity position?
Sempra maintains a strong liquidity position, with $606 million in unrestricted cash and cash equivalents and $8.38 billion in available unused credit facilities as of March 31, 2024. This provides ample resources to fund operations, capital expenditures, and debt obligations.
What are the key regulatory matters affecting Sempra California (SDG&E and SoCalGas)?
Sempra California's (SDG&E and SoCalGas) earnings were slightly impacted by higher net interest expense and lower income tax benefits. The companies are awaiting final decisions on their 2024 General Rate Cases (GRCs), with revenues currently based on 2023 authorized levels. Additionally, SDG&E is seeking recovery for wildfire mitigation plan costs.
06—Continue