LNG Operator Sempra Energy $SRE Guide To Higher End, Take California Wild Fires Loss

LNG Operator Sempra Energy $SRE reported third quarter earnings before the market, they guided to the higher end for next quarter and announced an impairment charge from California wild fires. They also announced an updated schedule on the Oncor transaction.

LNG operator Sempra Energy $SRE reported third quarter earnings before the market, they guided to the higher end for next quarter and announced an impairment charge from California wild fires. They also announced an updated schedule on the Oncor transaction.
 
 
 
Earnings: Profit rose to $265 million, or $1.04 per share, higher than $259 million, or $1.02 per share, in last year’s third quarter. However it was lower than the $1.05 per share seen by Thomson Reuters analysts’ estimates. Revenue for the quarter rose 5.5% to $2.68 billion. This was up from $2.54 billion last year.
 
Reaction: Sempra Energy NYSE $SRE Pre Market $115.81 +.17 + .15%
 
++ Adjusted earnings excluded a $208 million after-tax impairment in the most recent quarter related to a proposed decision by administrative law judges with the California Public Utilities Commission (CPUC) denying the request by San Diego Gas & Electric (SDG&E) to recover costs related to the 2007 San Diego wildfires.
 
“Based on our strong operating and financial performance through the first nine months, we are on track for one of the best years in our history. During the third quarter, we saw continued growth in our utility and infrastructure businesses, while laying the groundwork for a significant new growth platform with our agreement to acquire a majority stake in Oncor.” said Debra L. Reed, chairman, president and CEO of Sempra Energy

 
On Aug. 21, Sempra Energy entered into an agreement to acquire Energy Future Holdings Corp. (EFH), the indirect owner of approximately 80 percent of Oncor Electric Delivery Company LLC (Oncor), the largest electric utility in Texas.
 

EARNINGS GUIDANCE    

Today, Sempra Energy updated its GAAP 2017 earnings-per-share guidance range to $4.13 to $4.43 from the prior range of $4.95 to $5.25, resulting from the impairment in the third quarter 2017 related to SDG&E’s cost recovery for the 2007 San Diego wildfires. The company said it expects its adjusted 2017 earnings per share to be at the upper end of its guidance range of $5 to $5.30.

Sempra LNG & Midstream

In the third quarter 2017, Sempra LNG & Midstream recorded a net loss of $4 million, compared with earnings of $77 million in the third quarter 2016, due to the $78 million after-tax gain from the sale of EnergySouth in last year’s third quarter.

For the first nine months of 2017, Sempra LNG & Midstream had earnings of $24 million, compared with a net loss of $104 million in the first nine months of 2016. Sempra LNG & Midstream recorded a $28 million after-tax recovery in the second quarter 2017 related to last year’s permanent releases of certain pipeline capacity, compared with a related $123 million after-tax loss in 2016.

Last Quarter Earnings: Sempra Energy $SRE Beats Earnings, Expect Cameron LNG Train 1 to be Delayed Until 2019

Last quarter Sempra Energy $SRE reported on the Gulf reported that they were currently expecting Cameron LNG Train 1 to be delayed until 2019 due to several unstated factors. The next two trains will follow throughout 2019. This drastically moves from the planned February 2018 completion date. Trains 2 & 3, which were also scheduled for completion in 2018, have been pushed back and expected to be staggered through 2019.
 
Cameron LNG receipt terminal is located 18 miles from the Gulf of Mexico and within 35 miles of a pipeline hub that can deliver domestic natural gas to the project.
 
More Earnings: https://www.bizjournals.com/sanfrancisco/prnewswire/press_releases/California/2017/10/30/LA28340

Sources: Criterion Research, Sempra Energy

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