SAN DIEGO–(PRNewswire)–Sempra Energy Tuesday reported first-quarter 2017 earnings of $441 million, or $1.75 per diluted share, up from $353 million, or $1.40 per diluted share, in the first quarter 2016.
“Our strong first-quarter results keep us on track to meet our 2017 earnings guidance,” said Debra Reed, chairman, president and CEO of Sempra Energy. “As we outlined at our analyst conference last month, we are executing on our strategic plan to grow our earnings at about twice the average rate of our utility peers from 2017 through 2021.”
All earnings, adjusted earnings, earnings per share and adjusted earnings per share for 2016 have been recast to reflect the adoption of a share-based compensation accounting standard in 2016. Additionally, first-quarter 2016 results for Southern California Gas Co. (SoCalGas) and San Diego Gas & Electric (SDG&E) did not include revenue from their 2016-18 General Rate Case, as the California Public Utilities Commission (CPUC) did not issue its final decision until last year’s second quarter.
Sempra Energy’s first-quarter adjusted earnings were $438 million, or $1.74 per diluted share, in 2017, up from $404 million, or $1.60 per diluted share, in 2016. Last year’s adjusted first-quarter results excluded a $27 million after-tax loss related to the previously announced agreement to sell Sempra LNG & Midstream’s stake in the Rockies Express Pipeline (REX) and $24 million of deferred tax expense related to the planned Termoeléctrica de Mexicali (TdM) power plant sale. Sempra Energy’s adjusted first-quarter 2017 results excluded a $3 million deferred tax benefit related to the planned sale of TdM.
Southern California Gas Co.
Earnings for SoCalGas were $203 million in the first quarter 2017, compared with $199 million in the first quarter 2016.
San Diego Gas & Electric
First-quarter earnings for SDG&E were $155 million in 2017, compared with $136 million in 2016, due primarily to higher CPUC base margin and lower operating expenses.
Sempra South American Utilities
Earnings for Sempra South American Utilities were $47 million in the first quarter 2017, compared with $38 million in the first quarter 2016, primarily due to higher operating earnings in Peru.
Sempra Mexico had first-quarter earnings of $48 million in 2017, compared with $18 million in 2016, due primarily to the $24 million in deferred tax expense in 2016 related to the planned TdM sale, offset by unfavorable foreign-currency and inflation impacts in 2017. Additionally, Sempra Mexico benefited in the first quarter 2017 from incremental operating earnings from subsidiary IEnova’s acquisitions late last year of the Ventika wind farm complex and PEMEX’s stake in the Gasoductos de Chihuahua joint venture, and higher regulatory earnings from projects in construction.
First-quarter 2017 earnings for Sempra Renewables were $11 million, compared with $14 million in last year’s first quarter.
Sempra LNG & Midstream
Sempra LNG & Midstream had earnings of $1 million in the first quarter 2017, compared with a loss of $32 million in the first quarter 2016, primarily due to the $27 million after-tax loss in 2016 related to the agreement to sell its stake in REX.
Sempra Energy today reaffirmed its 2017 earnings-per-share guidance range of $4.85 to $5.25.
NON-GAAP FINANCIAL MEASURES
First-quarter adjusted earnings and adjusted earnings per share for both 2017 and 2016 are non-GAAP financial measures.