By Angela Chen
Sempra Energy said that growth in its Latin American units as a
result of tax reform and favorable currency rates led to
stronger-than-expected earnings in the December quarter, though
revenue missed expectations.
For 2015, the company expects earnings, excluding items, of
$4.60 to $5 a share, in line with analyst expectations of $4.84 a
share. San Diego-based Sempra owns energy utilities, pipelines,
facilities and terminals in the U.S. and Latin America.
In the most recently ended quarter, Sempra Mexico earnings rose
to $53 million from $26 million due to tax deform, the effect of
the stronger dollar, and inflation. Similarly, lower deferred taxes
in Peru helped Sempra South American Utilities' earnings rise to
$63 million from $43 million.
San Diego Gas & Electric reported a profit of $128 million,
up from $119 million a year earlier due to lower legal costs and
higher margin from electric transmission.
Sempra Natural Gas earned $11 million, up from $9 million a year
earlier.
However, Southern California Gas earnings fell to $76 million, a
decline from $98 million a year earlier due to lower income-tax
expense in 2013.
In all, Sempra, reported a profit of $297 million up from $282
million a year earlier. On a per-share basis, earnings rose to
$1.18 from $1.13. Excluding a charge related to the early closure
of a station, earnings were $1.23 a share.
Revenue increased 1.5% to $2.75 billion.
Analysts polled by Thomson Reuters had expected a per-share
profit of $1.08 and revenue of $2.92 billion.
Shares of Sempra have been off about 2% this year through
Wednesday's close.
Write to Angela Chen at angela.chen@dowjones.com
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