Sempra Energy reported second-quarter 2015 earnings of $295 million, or $1.17 per diluted share, compared with $269 million, or $1.08 per diluted share, in the second quarter 2014.
According to San Diego-based Sempra Energy, its second-quarter 2015 earnings included a $36 million after-tax gain on the sale of the second block of Sempra U.S. Gas & Power’s Mesquite Power facility and $1 million after tax in liquefied natural gas liquefaction development expenses. Excluding the gain on the sale of Mesquite Power and the LNG liquefaction development expenses, Sempra Energy’s adjusted earnings in the second quarter 2015 were $260 million, or $1.03 per diluted share.
Sempra Energy’s earnings for the first six months of 2015 were $732 million, or $2.91 per diluted share, up from $516 million, or $2.07 per diluted share, during the same period last year. In the first quarter 2015, San Diego Gas & Electric had a benefit of $13 million after tax, due to the reduction in the loss related to the San Onofre Nuclear Generating Station (SONGS), and Sempra U.S. Gas & Power had $4 million in LNG liquefaction development expenses. In the first quarter 2014, SDG&E recorded a $9 million charge related to the closure of SONGS. Excluding items in both years, Sempra Energy’s adjusted earnings for the first six months of 2015 were $688 million, or $2.74 per diluted share, up from $525 million, or $2.11 per diluted share, in the same period last year.
Beginning in the first quarter 2015, Southern California Gas Co. (SoCalGas) adopted an order by the California Public Utilities Commission to recognize revenues from the utility's core activities on a seasonally adjusted basis (seasonality). The application of seasonality in revenues will result in substantially all of SoCalGas’ annual earnings being reported in the first and fourth quarters of the year, but will not affect full-year operating earnings or cash flow.
The $26 million increase in Sempra Energy’s second-quarter 2015 earnings included $48 million lower earnings at SoCalGas due to seasonality, compared with the second quarter 2014. For the first six months of 2015, Sempra Energy's earnings were $65 million higher at SoCalGas due to seasonality, compared with the same period last year.
“Our financial and operating results in the second quarter were very strong and keep us on track to meet our 2015 adjusted earnings guidance,” said Debra L. Reed, chairman and CEO of Sempra Energy. “Excluding the impact of seasonality on earnings at SoCalGas, operating results for our California utilities improved during the first six months and our international operations continue to provide growth opportunities.”
Sempra subsidiary San Diego Gas & Electric reported second-quarter earnings of $126 million in 2015, compared with $123 million in 2014
For the first six months of 2015, SDG&E's earnings were $273 million, compared with $222 million for the first six months of 2014. Excluding the SONGS-related items in the first quarters of 2015 and 2014, SDG&E's adjusted earnings for the first six months were $260 million in 2015, up from $231 million in 2014.
Sempra Energy is a Fortune 500 energy services holding company with 2014 revenues of $11 billion, according to the company.
For a more detailed report on Sempra’s results, click here.