SAN DIEGO – Sempra Energy (NYSE: SRE), the parent to San Diego Gas & Electric Co., SoCalGas and other businesses in Texas and Mexico, reported quarterly earnings of $713 million, or $1.12 per diluted share, on revenue of $3.01 billion. The business’ second quarter ended June 30. Sempra announced earnings on Tuesday (Aug. 6).
In the same quarter of 2023, earnings were $603 million, or 95 cents per diluted share, on higher revenue of $3.34 billion. Figures were reported under GAAP (Generally Accepted Accounting Principles).
On an adjusted (non-GAAP) basis, earnings for the second quarter of 2024 were $567 million or 89 cents per diluted share. The results came in lower than the average of analysts polled by Yahoo Finance, 94 cents per share. Analysts had also expected $3.4 billion in revenue. Shares of SRE closed down 2.1% to $77.05 on Tuesday.
Chairman and CEO
Sempra
CEO Anticipates Growth; Texas Regulators Seek Improvements
Jeffrey W. Martin, chairman and CEO of Sempra, struck a positive note about the quarter.
“At Sempra, we are pleased with the strength of our financial performance through the first half of the year,” he said. “Our company is well-positioned for continued growth across each of our business platforms, which are benefitting from ongoing electrification, economic development and demand for safe, reliable and cleaner energy.”
The Texas market, served by Sempra subsidiary Oncor Electric Delivery Company LLC, is a growth story, Martin told analysts on a conference call. Sempra noted that on Monday (Aug. 5), the business successfully reached a settlement in principle with Texas regulators regarding a System Resiliency Plan. As filed, the plan proposed nearly $3 billion of capital investments over three years. Once it has final regulatory approval, Oncor expects to begin implementing the plan in the fourth quarter.
Meanwhile, the California Public Utilities Commission continues to review rate requests of Sempra California utilities.
LNG Growth Story Comes With Delays
News from Sempra Infrastructure, the corporation’s liquefied natural gas (LNG) business, was mixed.
Even though the U.S. Department of Energy has postponed permitting for new LNG plants and expansions, Sempra Infrastructure has been reporting small steps toward building a second phase of its LNG plant at Port Arthur, Texas. In July, it reported that Aramco of Saudi Arabia planned to invest in Phase 2 and to take almost half of the expansion’s output (5 million metric tons per year) under a preliminary, nonbinding agreement. In another step forward, Sempra said it signed a fixed-price engineering, procurement and construction contract with Bechtel Energy – a deal that provides an opportunity for a continuous construction process from Phase 1 (now in progress) to Phase 2. Sempra Infrastructure could begin operating Phase 1 of the Port Arthur plant as soon as 2027.
The business reported construction delays to its Energía Costa Azul (ECA) LNG plant near Ensenada, with commercial operations now expected by spring 2026. Sempra is building a liquefaction facility to support LNG exports. Previously, the corporation used the site for imports. In a conference call, Sempra officials said they were having difficulty getting the labor they need in Baja California. The plant is 85% complete.
Sempra updated its full-year 2024 GAAP earnings-per-common share (EPS) guidance range to $4.74 to $5.04 reflecting actual results through the second quarter. The business affirmed its full-year 2024 adjusted EPS guidance range of $4.60 to $4.90 and affirmed its full-year 2025 EPS guidance range of $4.90 to $5.25. The company also affirmed its projected long-term EPS growth rate of approximately 6% to 8%.
In the recently ended quarter, the foreign exchange rates of the Mexican peso and inflation affected Sempra’s financial results. The company said it experienced a $152 million impact from foreign currency and inflation on its monetary positions in Mexico.
Sempra
FOUNDED: 1998
CEO: Jeffrey W. Martin
HEADQUARTERS: East Village
BUSINESS: Energy services holding company
REVENUE: $16.72 billion in 2023; $14.44 billion in 2022
STOCK: SRE on the New York Stock Exchange
EMPLOYEES: More than 20,000 companywide
WEBSITE: www.sempra.com
CONTACT: 619-696-2000
SOCIAL IMPACT: Sempra spent approximately $1 billion with diverse business enterprises in 2022, representing nearly 40% of procurement spend
NOTABLE: Sempra Infrastructure signed a nonbinding agreement with Aramco for the second phase of its LNG export terminal in Port Arthur, Texas
