Sempra reports mixed results
Quarterly profits at San Diego-based utility holding company Sempra Energy declined by 29 percent in the third quarter to $248 million, a drop based on new seasonal accounting rules, the company announced Tuesday.
At the same time, the company raised its annual earnings forecast with investors by a small measure, anticipating a fourth quarter boost from natural gas operations at the end of the year.
“Through three quarters, we are on track to exceed our 2015 financial and operational objectives,” said Debra Reed, CEO of Sempra Energy, in a statement.
Sempra this year began recording revenues on a seasonally adjusted basis that shifts nearly all earnings from subsidiary Southern California Gas to the first and fourth quarters, at the direction of the California Public Utilities Commission.
That “seasonality” had a negative impact of $113 million on third-quarter earnings at SoCal Gas, Sempra explained.
SoCal Gas recorded a loss of $8 million for the quarter, down from $98 million from the same period in 2014.
Profits at San Diego Gas & Electric rose 8 percent to $276 million from $256 million last year, due to higher earnings from electric transmission operations and higher margin allowances from state regulators.
Company executives highlighted expectations next year for a $17 million increase in revenues at SDG&E and $122 million for Southern California Gas, under settlement agreements awaiting approval by the California Public Utilities Commission. The two regulated utility monopolies remain at odds with the state Office of Ratepayer Advocates on issues related to income tax benefits and repair allowances.
Sempra’s South American utilities in Chile and Peru saw earnings increase by 34 percent to $43 million, due to operations and lower income-tax expenses.
Third-quarter profits at Sempra’s Mexico division were unchanged at $63 million. A year ago, Sempra Mexico recorded a $14 million benefit from the sale of a 50 percent interest in an industrial scale wind farm just south of the U.S.-Mexico border at La Rumorosa in Baja California.
Earnings dipped to $15 million at Sempra Renewables from $17 million last year. The company builds and operates utility scale solar and wind facilities.
Profits fell to $1 million from $24 million last year at Sempra’s U.S. natural gas operations, due primarily to a Louisiana state income-tax benefit in 2014.
