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Monday, Feb 6, 2023

Sempra Looks Ahead After Announcing Its Annual Earnings

Study the net income figures from San Diego’s top Fortune 500 company and you’ll find a study in contrasts.

On Feb. 26, Sempra Energy reported fourth-quarter net income of $289 million, or $1.10 per diluted share, on revenue of $3.1 billion.

That is way up from one year ago, when the energy holding company brought in $125 million, or 47 cents per diluted share, on revenue of $3.2 billion.

Quarterly net income more than doubled because the company had to take a $221 million loss on some investments in Argentina late in 2006.

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For the entirety of 2007, Sempra reported net income of $1.1 billion, or $4.16 per diluted share, on revenue of $11.4 billion.

In 2006, the company had net income of $1.41 billion, or $5.38 per diluted share, on revenue of $11.8 billion. Sempra sold its share in some Texas power plants in 2006, boosting net income by $204 million.

Though events of 2006 still cast shadows, Sempra prefers to look ahead.

Work In Progress

Last year was “all in all a very good year and a great foundation for our future growth,” Sempra Chairman and Chief Executive Officer Donald Felsinger said during a conference call with analysts.

Though it is the parent company to San Diego Gas & Electric Co. and Southern California Gas Co., Sempra goes beyond regulated utilities, building and running power plants and pipelines, and trading in commodities.

The company expects big things from its subsidiaries in the months to come.

Its liquid natural gas unit, Sempra LNG, will begin accepting shipments at its Energ & #237;a Coastal Azul terminal in Baja California, Mexico, during the second quarter. Felsinger says it’s the first liquid natural gas terminal on the West Coast.

Sempra also expects to launch its joint commodity trading venture with the Royal Bank of Scotland in April. Chief Financial Officer Mark Snell says regulators in the United States and the United Kingdom have OK’d the deal, though it still needs approval from the Federal Reserve.

The next few months will also see whether Sempra’s Sunrise Powerlink, a proposed transmission line from Imperial County to the San Diego metro region, receives an OK from the California Public Utilities Commission.


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