Sempra Energy Profit Rises 9.6%

Sempra Energy said its second-quarter earnings rose 9.6% as the company benefited from asset-sale gains and stronger profits at most of its businesses.

San Diego, Calif.-based Sempra owns energy utilities, pipelines, facilities and terminals in the U.S. and Latin America.

Chairman and Chief Executive Debra L. Reed said "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."

Overall, Sempra reported a profit of $296 million, or $1.17 a share, up from $270 million, or $1.08 a share, a year earlier. Excluding impacts such as asset sale gains liquefied-natural-gas development expenses and other items, per-share earnings were $1.03. Revenue decreased 12% to $2.37 billion.

Analysts polled by Thomson Reuters expected per-share profit of $1 and revenue of $2.77 billion.

At the company's California utilities, earnings at Southern California Gas rose 2.4% to $126 million, while profit at San Diego Gas & Electric fell roughly 13% to $70 million. The decline at San Diego Gas & Electric was mostly owing to a seasonal decline in revenue, which had a negative impact of $48 million.

Sempra also has been seeking growth abroad. Last week the Mexican unit of Sempra Energy, IEnova, agreed to acquire the 50% stake in a pipeline joint venture from of venture partner Petró leos Mexicanos for $1.33 billion.

Pemex and IEnova will maintain their joint venture in the Los Ramones Norte pipeline, which is part of a major project to carry natural gas from Texas to central Mexico.

Sempra Mexico earnings rose 28% for $50 million, while Sempra South American Utilities recorded earnings growth of 7.1% to $45 million.

The company affirmed its 2015 outlook.

Write to Tess Stynes at [e-mail]

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