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.
Write to Michael Calia at michael.calia@wsj.com
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