Sempra Energy reported first quarter 2015 earnings of $437 million, or $1.74 per diluted share, up from $247 million, or $0.99 per diluted share, in the first quarter of 2014.
Beginning in the first quarter of 2015, Sempra's Southern California Gas Co. adopted an order by the California Public Utilities Commission to recognize revenues from the utility’s core activities on a seasonally adjusted basis. The application of seasonality in revenues for SoCalGas 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.
The $190 million increase in Sempra Energy’s first-quarter 2015 earnings included $113 million incremental earnings due to the seasonal adjustment at SoCalGas, Sempra said.
Sempra Energy’s first-quarter adjusted earnings were $428 million, or $1.71 per diluted share, in 2015, compared with $256 million, or $1.03 per diluted share, in 2014. First-quarter 2015 GAAP results included a benefit of $13 million after-tax, due to the reduction in the loss related to the San Onofre Nuclear Generating Station (SONGS) closure, offset by a $4 million after-tax liquefied natural gas (LNG) development expense. Last year’s first-quarter GAAP results included a $9 million after-tax charge related to the closure of SONGS, Sempra said.
Earnings for Sempra’s SoCalGas rose to $214 million in the first quarter 2015 from $78 million in last year’s first quarter, due primarily to higher authorized margin and the $113 million seasonal adjustment related to its core activities.
Earnings for Sempra’s San Diego Gas & Electric were $147 million in the first quarter 2015, up from $99 million in the year-earlier period, due primarily to higher CPUC-authorized margin, increased earnings from electric transmission operations and the benefit of $13 million from the reduction in the current year to the loss related to the SONGS closure. In the first quarter 2014, SDG&E recorded a $9 million charge related to the SONGS closure.
Sempra Renewables had first-quarter earnings of $13 million in 2015, compared with $28 million in 2014. In last year's first quarter, the company had a $16 million gain on the sale of a 50-percent equity interest in the Copper Mountain Solar 3 project.
Earnings for Sempra Natural Gas were $2 million in the first quarter 2015, compared with $9 million in the first quarter 2014, due primarily to lower LNG earnings resulting from lower natural gas prices and LNG liquefaction development expense.
As announced previously, Sempra Energy's adjusted earnings-per-share guidance range for 2015 is $4.60 to $5, which excludes the increase in earnings from the reduction in the current year to the loss related to the SONGS closure and the earnings decrease from potential LNG-related development activities. Adjusted earnings-per-share guidance for 2015 also excludes the increase in earnings from the sale of the remainder of the Mesquite Power natural gas-fired generating facility, which will be recorded in the second quarter 2015.
For a more detailed report on Sempra’s earnings, click here.