Sempra Energy Q3 Profit Up 18%, Results Beat View

(RTTNews) - Utility company Sempra Energy (SRE) on Tuesday reported an 18 percent increase in the profit for the third quarter from last year on double-digit growth in revenues at its utilities segment. Both earnings per share and revenue for the quarter beat analysts' estimates.

Looking ahead, the company said it now expects to achieve fiscal 2014 earnings near the high end of its outlook range.

For the third quarter, the company's earnings increased to $348 million or $1.39 per share from $296 million or $1.19 per share in the prior year. On average, 11 analysts polled by Thomson Reuters expect the company to report earnings of $1.24 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 11 percent to $2.82 billion from $2.55 billion in the same period last year. Analysts had a consensus revenue estimate of $2.68 billion for the quarter.

Utilities segment revenue for the quarter rose 11 percent to $2.46 billion, while energy-related businesses revenue increased 7 percent to $352 million.

Among the company's California Utilies, earnings for SDG&E in the quarter increased 22 percent from last year to $157 million, due primarily to higher CPUC base operating margin and favorable resolution of prior-years' income tax items. Meanwhile, SoCalGas earnings declined 4 percent from the year-ago period to $98 million.

At Sempra International, Sempra South American Utilities earnings declined 18 percent from last year to $32 million, reflecting higher taxes. However, Sempra Mexico earnings surged 62 percent to $63 million, due primarily to the gain on the sale of 50 percent of the first phase of the Energia Sierra Juarez wind-power project, as well as regulatory earnings from projects in construction.

At Sempra U.S. Gas & Power, Sempra Renewables earnings declined 54 percent to $17 million, $24 million in gains recorded in the year-ago period, associated with the contribution of assets to 50-50 solar joint ventures with Consolidated Edison Development. Sempra Natural Gas reported third-quarter earnings of $26 million, compared to losses of $7 million in the year-ago period.

Looking ahead to fiscal 2014, Sempra Energy said it expects to achieve earnings near the high end of its guidance range of $4.25 to $4.55 per share. Analysts expect earnings per share of $4.47 for the year.

Debra Reed, chairman and CEO of Sempra Energy, said, "Last month, the Cameron LNG joint venture broke ground on its liquefaction-export project, which should be operational in 2018. Our Mexican unit, IEnova, completed the first phase of the Sonora pipeline and is nearing completion of the first phase of the Los Ramones pipeline."

Reed added that Sempra Energy will be bidding later this year on several additional pipeline projects under Mexico's energy privatization plan.

SRE is currently trading at $111.16, up $0.32 or 0.29 percent on a volume of 92,861 shares.