By Kristin Jones
Sempra Energy's (SRE) second-quarter profit soared on the effect
of a rate increase at its California utilities.
Sempra owns electric and natural-gas utilities in California and
South America, and natural-gas pipelines, storage facilities and
liquefied natural gas terminals in the U.S. and Mexico. The
company's earnings have been hurt by low natural gas prices and
power prices.
The California Public Utilities Commission in May authorized a
rate increase for San Diego Gas & Electric and Southern
California Gas Co. As a result, the latest quarter included a $77
million benefit for the 2012 operations of the two utilities, and a
$29 million benefit for the first quarter of 2013.
For the latest quarter, Sempra reported a profit of $244
million, or 98 cents a share, up from $61 million, or 25 cents a
share, a year earlier. Excluding the California utilities benefits
and other impacts, adjusted per-share earnings rose to $1.04 from
98 cents a share. Analysts polled by Thomson Reuters were expecting
a profit of $1.31 a share.
Revenue climbed 27% to $2.65 billion.
Revenue from utilities, the largest top-line contributor by far,
rose 27% to $2.33 billion. San Diego Gas & Electric posted
earnings of $65 million, down from $95 million a year earlier.
Southern California Gas Co. reported earnings of $118 million, up
from $53 million.
The company's energy-related businesses posted revenue growth of
27% to $319 million.
Shares closed Monday at $87.45 and were unchanged after hours.
Through Monday's close, the stock was up 23% since the start of the
year..
Write to Kristin Jones at kristin.jones@wsj.com
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