Sempra Energy, San Diego’s parent to San Diego Gas & Electric and other entities, reported first quarter net income of $178 million, down from $226 million in net income for the first quarter of 2012.
Revenue for the quarter was $2.65 billion, compared with $2.38 billion for the like quarter of 2012.
Sempra said the decline in profit was caused by a one-time charge for income tax expense of $63 million resulting from a reorganization following an initial public offering of a Mexican subsidiary called IEnova.
While earnings fell, the performance of Sempra’s businesses remains solid as the company completed key milestones including the sale of its half interest in an Arizona power plant and a successful equity offering of the Mexican unit, said Chairman and CEO Debra Reed.
Sempra’s Cameron plan to construct a liquefied natural gas export project in Louisiana had its application accepted for review by the Federal Energy Regulatory Commission, which is expected to render its decision by early 2014. The company expects to receive another key permit from the Department of Energy later this year. The LNG project, costing $9 billion to $10 billion and being done with three partners, is slated to begin operating in 2017 and would process up to 1.7 billion cubic feet daily of LNG to be exported internationally.
SDG&E reported first quarter net profit of $91 million, down from $105 million in the like quarter of 2012.
Sempra conducted an IPO on its Mexican division, selling about 19 percent of the company, with shares trading on the Mexican Stock Exchange also called the Bolsa.
In related news, Sempra said it’s considering a number of options in advance of its lease on its headquarters building expiring in mid-2015. Some reports have the company moving into a yet-to-be-built office near Petco Park.
Sempra spokesman Doug Kline said the company is either staying put, will lease new existing space, or lease space in a new building, but is definitely staying in downtown San Diego.
Some 750 employees work at the headquarters office at 101 Ash St. SDG&E operates from an office complex in Kearny Mesa, where it has about 5,000 employees.
Shares of Sempra, traded under SRE on the New York Stock Exchange, closed at $83.26 on May 2, giving the company a market capitalization of about $20 billion. Its 52-week range is $63.02 to $84.69.
— Mike Allen