By Ben Fox Rubin
Sempra Energy's (SRE) third-quarter profit rose 2.4% as the
company booked a cash payment from Kinder Morgan Energy Partners
L.P. (KMP) related to the Rockies Express Pipeline.
The power and energy company owns electric and natural-gas
utilities in California, utilities in South America, and natural
gas pipelines and storage facilities and liquefied natural gas
terminals in the U.S. and Mexico.
With prices for natural gas at historic lows, Sempra's proposed
gas-export terminal in Louisiana is a top priority to boost future
earnings and turn the company's existing gas import facility into a
more valuable asset. The facility would liquefy gas produced in the
U.S. and load it onto tankers to ship abroad.
In December, Sempra agreed to sell about half of the capacity of
an Arizona natural gas-fired power plant to the Salt River Project
Agricultural Improvement and Power District for $371 million as the
company aims to reduce its exposure to competitive merchant power
markets.
For the latest quarter, Sempra posted a profit of $294 million,
up from $287 million. Per-share earnings, which reflect the payment
of preferred dividends, were flat at $1.18. The latest quarter
included a $25 million cash payment from Kinder Morgan related to
the sale of its 50% stake in the Rockies Express Pipeline.
Excluding the gain, per-share earnings were $1.08.
Revenue rose 2.5% to $2.67 billion.
Analysts surveyed by Thomson Reuters expected adjusted earnings
of 96 cents on revenue of $2.63 billion.
Profit at the San Diego Gas and Electric utility was $110
million, down from $158 million a year earlier, due in part to
higher revenue for incremental wildfire insurance premiums a year
earlier. Profit at the company's Southern California Gas Co. rose
to $99 million, compared with $79 million a year earlier, due to
lower income taxes, partially offset by higher depreciation and
other operating expenses.
The natural-gas business swung to a profit of $19 million,
compared with a loss of $36 million, primarily due to the receipt
of the cash payment from Kinder Morgan.
For the new year, the company predicted earnings of $4.30 to
$4.80, compared with estimates of $4.41.
Shares closed Monday at $75.73 and were inactive premarket. The
stock is up 13% over the past three months.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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