Sempra Energy Profit Up 11% as Utilities Revenue Grows

   By Michael Calia 
 

Sempra Energy's (SRE) third-quarter profit rose 11% behind growth in utilities revenue.

Sempra owns electric and natural-gas utilities in California and South America, as well as natural-gas pipelines, storage facilities and liquefied natural gas terminals in the U.S. and Mexico. Low natural-gas prices and power prices have weighed on the company's earnings.

But in May, the California Public Utilities Commission authorized a rate increase for San Diego Gas & Electric and Southern California Gas Co. The latter posted earnings growth for the third quarter, but the loss of revenue from the now-closed San Onofre Nuclear Generating Station helped offset any gain at San Diego Gas & Electric.

Overall, Sempra reported a profit of $301 million, or $1.19 a share, up from $270 million, or $1.09 a share, a year earlier. The year-ago period included a $60 million charge related to a write-down on the company's minority stake in the Rockies Express Pipeline.

Revenue was up 1.8% at $2.55 billion.

Analysts polled by Thomson Reuters were expecting a profit of $1.22 a share.

Revenue from utilities, the company's largest top-line contributor, rose 2.4% to $2.22 billion. San Diego Gas & Electric reported earnings of $129 million, down from $174 million a year earlier. Southern California Gas reported earnings of $102 million, up from $71 million.

The company's energy-related businesses' revenue shrank 2.7% to $328 million.

Shares of Sempra, which backed its full-year earnings guidance, were up 16 cents at $92.09 in early trading. The stock was up 30% so far this year through Monday's close.

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