PR Newswire: news distribution, targeting and monitoring
2014
See more news releases in Gas  | Oil & Energy  | Utilities  | Earnings Forecasts & Projections  | Earnings

Sempra Energy Reports First-Quarter 2013 Earnings

- Successful Initial Public Offering of Mexican Subsidiary IEnova Completed

- California Utilities' Rate Case Advances With Issuance of Proposed Decision

- Cameron LNG Becomes First Pending LNG Export Project to Attain FERC Environmental Review Schedule

Share with Twitter Share with LinkedIn

SAN DIEGO, May 2, 2013 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported first-quarter 2013 earnings of $178 million, or $0.72 per diluted share, compared with $236 million, or $0.97 per diluted share, in the first quarter 2012.  First-quarter 2013 earnings included a one-time charge for income tax expense of $63 million related to a reorganization in connection with the initial public offering of Sempra Energy's Mexican subsidiary.

"While our reported earnings declined in the first quarter, the performance of our businesses remains solid and we completed several key strategic milestones, including the sale of half of our ownership interest in our Arizona gas-fired power plant and the successful public offerings at our Sempra Mexico unit," said Debra L. Reed, chairman and CEO of Sempra Energy.  "During the quarter, we raised nearly $1 billion in external capital and attracted strong local ownership in our Mexican company, IEnova."

Additionally, Reed said that the company continues to make progress in permitting its proposed Cameron LNG export project in Louisiana.  Last month, the Federal Energy Regulatory Commission (FERC) issued a notice of its schedule for the environmental review of the project.  Cameron LNG is the first and only proposed LNG export application currently pending before the FERC to have reached this milestone in the permitting process.  Based on the published schedule, the FERC is expected to release the final Environmental Impact Statement for the project in November and issue its final ruling in early 2014.  The company expects to receive the other major permit for the project from the U.S. Department of Energy by the end of this year.  The project is slated to begin operations in 2017 and process up to 1.7 billion cubic feet per day of natural gas for export to international markets.

CALIFORNIA UTILITIES
On March 29, the California Public Utilities Commission (CPUC) issued a draft decision in the General Rate Case for San Diego Gas & Electric (SDG&E) and Southern California Gas Co. (SoCalGas).  Until the CPUC reaches a final decision, both utilities are recording revenues based on 2011 authorized levels, as adjusted for the recovery of incremental wildfire insurance premiums at SDG&E.  SoCalGas and SDG&E will record the cumulative change resulting from the decision, retroactive to the beginning of 2012, in the quarter a final decision is approved.   A final decision on the General Rate Case is expected in the second quarter.

Due to the delay in the final rate case decision, first-quarter 2013 earnings were lower for both SDG&E and SoCalGas.  The two utilities had higher operating expenses, including depreciation, with no increase in authorized revenue.

San Diego Gas & Electric
SDG&E had first-quarter earnings of $91 million in 2013, compared with $105 million in 2012.

Southern California Gas Co.
Earnings for SoCalGas in the first quarter 2013 were $46 million, compared with $66 million in last year's first quarter.

SEMPRA INTERNATIONAL
Sempra South American Utilities
Sempra South American Utilities recorded earnings of $37 million in the first quarter 2013, compared with $40 million in the first quarter 2012.  The decrease in earnings was due primarily to an impairment charge on its investment in Argentine utilities, partially offset by higher earnings in Chilean and Peruvian operations.        

Sempra Mexico
Sempra Mexico's earnings in the first quarter 2013 were $31 million, compared with $33 million in last year's first quarter.

During the first quarter 2013, Sempra Mexico completed separate debt and equity offerings raising nearly $1 billion of external capital.  The initial public offering – the first for an energy company in Mexico – sold nearly 19 percent of the equity in the company.  The Mexican operating company was renamed "IEnova."    

SEMPRA U.S. GAS & POWER
Sempra Renewables
Sempra Renewables had first-quarter earnings of $4 million in 2013, compared with $10 million in 2012, due to lower tax benefits from solar projects, partially reflecting the impact of the federal government's sequestration.

Sempra Natural Gas
Earnings for Sempra Natural Gas were $53 million in the first quarter 2013, up from $1 million in first quarter 2012, due primarily to a $44 million gain related to the sale of half of the Mesquite Power natural gas-fired power plant in February. 

2013 EARNINGS EXPECTATIONS
Sempra Energy does not plan to update its previous 2013 earnings guidance until after the CPUC issues a final decision in the General Rate Case for SDG&E and SoCalGas.  If, however, the terms of the General Rate Case draft decision are adopted in the final decision, the company would expect earnings to be at the low end of the current per-share guidance range for 2013 of $4.30 to $4.80.

INTERNET BROADCAST
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company.  Access is available by logging onto the website at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 2913728.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2012 revenues of approximately $10 billion.  The Sempra Energy companies' nearly 17,000 employees serve more than 31 million consumers worldwide.

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "forecasts," "estimates," "may," "will," "would," "could," "should," "potential," "target," "outlook," "depends," "pursue" or similar expressions, or discussions of guidance, strategies, plans, goals, initiatives, objectives or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions and the timing of actions by the California Public Utilities Commission, California State Legislature, Federal Energy Regulatory Commission, U.S. Department of Energy, Nuclear Regulatory Commission, California Energy Commission, California Air Resources Board, and other regulatory, governmental and environmental bodies in the United States and other countries where the company does business; capital market conditions, including the availability of credit and the liquidity of investments; inflation, interest and exchange rates; the impact of benchmark interest rates, generally Moody's A-rated utility bond yields, on the California utilities' cost of capital; the timing and success of business development efforts and construction, maintenance and capital projects, including risks inherent in the ability to obtain, and the timing of the granting of, permits, licenses, certificates and other authorizations; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas, including disruptions caused by failures in the North American transmission grid, pipeline explosions and equipment failures; weather conditions, natural disasters, catastrophic accidents, and conservation efforts; risks inherent in nuclear power generation and radioactive materials storage, including catastrophic release of such materials, the disallowance of the recovery of the investment in, or operating costs of, the generation facility due to an extended outage, and increased regulatory oversight; risks posed by decisions and actions of third parties who control the operations of investments in which the company does not have a controlling interest; wars, terrorist attacks and cyber security threats; business, regulatory, environmental and legal decisions and requirements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of SDG&E's electric transmission and distribution system due to increased power supply from renewable energy sources; the impact on competitive customer rates of the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through our electric transmission and distribution system; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.

These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.

Sempra International, LLC, and Sempra U.S. Gas & Power, LLC, are not the same companies as San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas) and Sempra International, LLC and Sempra U.S. Gas & Power, LLC are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.

 

SEMPRA ENERGY

Table A









CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS








 Three months ended March 31,

(Dollars in millions, except per share amounts)

2013


2012


(unaudited)

REVENUES




Utilities

$  2,334


$  2,091

Energy-related businesses

316


292

    Total revenues

2,650


2,383

EXPENSES AND OTHER INCOME




Utilities:




    Cost of natural gas

(556)


(431)

    Cost of electric fuel and purchased power

(447)


(388)

Energy-related businesses:




    Cost of natural gas, electric fuel and purchased power

(111)


(129)

    Other cost of sales

(48)


(33)

Operation and maintenance

(724)


(671)

Depreciation and amortization

(295)


(257)

Franchise fees and other taxes

(106)


(96)

Gain on sale of asset

74


-

Equity earnings, before income tax

10


12

Other income, net

37


75

Interest income

6


5

Interest expense

(138)


(113)

Income before income taxes and equity earnings 




    of certain unconsolidated subsidiaries

352


357

Income tax expense

(178)


(117)

Equity earnings, net of income tax

4


11

Net income

178


251

Losses (earnings) attributable to noncontrolling interests

2


(13)

Preferred dividends of subsidiaries

(2)


(2)

Earnings

$     178


$     236





Basic earnings per common share

$    0.73


$    0.98

Weighted-average number of shares outstanding, basic (thousands)

243,294


240,566





Diluted earnings per common share

$    0.72


$    0.97

Weighted-average number of shares outstanding, diluted (thousands)

247,534


243,761





Dividends declared per share of common stock

$    0.63


$    0.60

 

 

 

SEMPRA ENERGY

Table B








CONDENSED CONSOLIDATED BALANCE SHEETS












March 31,


December 31,

(Dollars in millions)

2013


2012(1)





(unaudited)



Assets




Current assets:





Cash and cash equivalents

$    1,471


$           475


Restricted cash

57


46


Accounts receivable

1,329


1,299


Income taxes receivable

73


56


Deferred income taxes

28


148


Inventories

270


408


Regulatory balancing accounts – undercollected

411


395


Regulatory assets 

42


62


Fixed-price contracts and other derivatives

88


95


U.S. Treasury grants receivable

236


258


Asset held for sale, power plant

-


296


Other

118


157




Total current assets

4,123


3,695








Investments and other assets:





Restricted cash

19


22


Regulatory assets arising from pension and other postretirement 





    benefit obligations

1,167


1,151


Regulatory assets arising from wildfire litigation costs

360


364


Other regulatory assets

1,233


1,227


Nuclear decommissioning trusts

952


908


Investments

1,519


1,516


Goodwill 

1,113


1,111


Other intangible assets

434


436


Sundry

895


878




Total investments and other assets

7,692


7,613

Property, plant and equipment, net

25,458


25,191

Total assets

$   37,273


$       36,499








Liabilities and Equity




Current liabilities:





Short-term debt

$       762


$           546


Accounts payable

990


1,110


Dividends and interest payable

323


266


Accrued compensation and benefits

217


337


Regulatory balancing accounts – overcollected

294


141


Current portion of long-term debt

1,381


725


Fixed-price contracts and other derivatives

71


77


Customer deposits

142


143


Reserve for wildfire litigation

221


305


Other

788


608




Total current liabilities

5,189


4,258

Long-term debt

10,680


11,621








Deferred credits and other liabilities:





Customer advances for construction

139


144


Pension and other postretirement benefit obligations, net of plan assets

1,466


1,456


Deferred income taxes

2,248


2,100


Deferred investment tax credits

46


46


Regulatory liabilities arising from removal obligations

2,783


2,720


Asset retirement obligations

2,056


2,033


Fixed-price contracts and other derivatives

254


252


Reserve for wildfire litigation

45


22


Deferred credits and other 

1,027


1,085




Total deferred credits and other liabilities

10,064


9,858

Contingently redeemable preferred stock of subsidiary

79


79

Equity:





Total Sempra Energy shareholders' equity

10,423


10,282


Preferred stock of subsidiary

20


20


Other noncontrolling interests

818


381




Total equity

11,261


10,683

Total liabilities and equity

$   37,273


$       36,499








(1)

Derived from audited financial statements.

 

 

 

SEMPRA ENERGY

Table C







CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 










Three months ended
March 31,

(Dollars in millions)


2013


2012




(unaudited)

Cash Flows from Operating Activities





Net income

$

178

$

251

Adjustments to reconcile net income to net cash provided





  by operating activities:






Depreciation and amortization


295


257


Deferred income taxes and investment tax credits


252


31


Gain on sale of asset


(74)


      ―


Equity earnings


(14)


(23)


Fixed-price contracts and other derivatives


17


(12)


Other


6


14

Net change in other working capital components


149


168

Changes in other assets


17


12

Changes in other liabilities


9


1


Net cash provided by operating activities


835


699







Cash Flows from Investing Activities





Expenditures for property, plant and equipment


(531)


(811)

Expenditures for investments


(5)


(51)

Proceeds from sale of asset


371


      ―

Distributions from investments


15


8

Purchases of nuclear decommissioning and other trust assets


(136)


(134)

Proceeds from sales by nuclear decommissioning and other trusts


134


135

Decrease in restricted cash


52


39

Increase in restricted cash


(60)


(40)

Other 


(2)


(5)


Net cash used in investing activities


(162)


(859)







Cash Flows from Financing Activities





Common dividends paid


(145)


(115)

Preferred dividends paid by subsidiaries


(2)


(2)

Issuances of common stock


15


13

Repurchases of common stock


(45)


(16)

Issuances of debt (maturities greater than 90 days)


608


1,008

Payments on debt (maturities greater than 90 days)


(645)


(347)

Proceeds from sale of noncontrolling interests, net of $25 in offering costs


574


      ―

Decrease in short-term debt, net


(43)


(224)

Distributions to noncontrolling interests


(1)


(3)

Other 


4


(4)


Net cash provided by financing activities


320


310







Effect of exchange rate changes on cash and cash equivalents


3


2







Increase in cash and cash equivalents


996


152

Cash and cash equivalents, January 1


475


252

Cash and cash equivalents, March 31

$

1,471

$

404







 

 

 

SEMPRA ENERGY

Table D













SEGMENT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS 










Three months ended 




March 31,

(Dollars in millions)

2013


2012




    (unaudited)

Earnings (Losses) 


California Utilities:




San Diego Gas & Electric

$   91


$ 105

Southern California Gas

46


66

Sempra International:




Sempra South American Utilities

37


40

Sempra Mexico

31


33

Sempra U.S. Gas & Power:




Sempra Renewables

4


10

Sempra Natural Gas

53


1

Parent and other

(84)


(19)

Earnings

$ 178


$ 236










 Three months ended  




March 31,

(Dollars in millions)

2013


2012




    (unaudited)

Capital Expenditures and Investments




California Utilities:




San Diego Gas & Electric

$ 237


$ 398

Southern California Gas

179


165

Sempra International:




Sempra South American Utilities

22


20

Sempra Mexico

61


5

Sempra U.S. Gas & Power:




Sempra Renewables

11


251

Sempra Natural Gas

26


22

Parent and other

-


1

Consolidated Capital Expenditures and Investments

$ 536


$ 862







 

 

 


SEMPRA ENERGY

Table E















OTHER OPERATING STATISTICS (Unaudited)














Three months ended March 31,

UTILITIES


2013


2012






California Utilities - SDG&E and SoCalGas





Gas Sales (bcf)(1)


140


134

Transportation (bcf)(1)


168


171

Total Deliveries (bcf)(1)


308


305

Total Gas Customers (Thousands)


6,685


6,660








Electric Sales (Millions of kWhs)(1)


4,024


4,089

Direct Access (Millions of kWhs)


835


752

Total Deliveries (Millions of kWhs)(1)


4,859


4,841

Total Electric Customers (Thousands)


1,403


1,395








Other Utilities(2)





Natural Gas Sales (bcf)






Argentina


64


73


Mexico


6


6


Mobile Gas


11


12


Willmut Gas(3)


1


-

Natural Gas Customers (Thousands) 






Argentina


1,868


1,819


Mexico


94


90


Mobile Gas


89


90


Willmut Gas(3)


20


-

Electric Sales (Millions of kWhs)






Peru


1,746


1,690


Chile


761


745

Electric Customers (Thousands)






Peru


968


934


Chile


628


613








ENERGY-RELATED BUSINESSES












Sempra International





Power Sold (Millions of kWhs)






Sempra Mexico


1,044


1,078








Sempra U.S. Gas & Power





Power Sold (Millions of kWhs)






Sempra Renewables(4)

698


273


Sempra Natural Gas


1,132


1,940








(1) Includes intercompany sales.

(2) Represents 100% of the distribution operations of the subsidiary, although the subsidiary in Argentina is not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

(3) Acquired in May 2012.

(4) Includes 50% of total power sold related to wind projects in which Sempra Energy has a 50% ownership. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.

 

 

 


         SEMPRA ENERGY

           Table F (Unaudited)



















Statement of Operations Data by Segment






























Three Months Ended March 31, 2013
































(Dollars in millions)


SDG&E


SoCalGas


Sempra South American Utilities


Sempra Mexico


Sempra Renewables


Sempra Natural Gas


Consolidating Adjustments, Parent & Other



Total



















Revenues


$   939


$      983


$     384


$  168


$          21


$        253


$           (98)



$2,650



















Cost of Sales and Other Expenses


(637)


(800)


(301)


(113)


(13)


(220)


92



(1,992)



















Gain on Sale of Asset


-


-


-


-


-


74


-



74



















Depreciation & Amortization


(134)


(100)


(15)


(16)


(8)


(20)


(2)



(295)



















Equity Earnings Recorded Before Income Tax


-


-


-


-


1


9


-



10



















Other Income, Net


11


4


3


9


-


2


8



37



















Income Before Interest & Tax (1)


179


87


71


48


1


98


-



484



















Net Interest Expense (2)


(48)


(17)


(2)


(1)


(5)


(12)


(49)



(134)



















Income Tax (Expense) Benefit


(51)


(24)


(17)


(26)


8


(33)


(35)

 (3)


(178)



















Equity (Losses) Earnings Recorded Net of Income Tax


-


-


(7)


11


-


-


-



4



















Losses (Earnings) Attributable to Noncontrolling Interests


11


-


(8)


(1)


-


-


-



2



















Earnings (Losses)


$    91


$        46


$       37


$    31


$            4


$          53


$           (84)



$   178





































Three Months Ended March 31, 2012
































(Dollars in millions)


SDG&E


SoCalGas


Sempra South American Utilities


Sempra Mexico


Sempra Renewables


Sempra Natural Gas


Consolidating Adjustments, Parent & Other



Total



















Revenues


$   834


$      880


$     357


$  136


$            8


$        269


$          (101)



$2,383



















Cost of Sales and Other Expenses


(544)


(674)


(281)


(75)


(9)


(245)


80



(1,748)



















Depreciation & Amortization


(112)


(87)


(13)


(16)


(3)


(23)


(3)



(257)



















Equity Earnings Recorded Before Income Tax


-


-


-


-


1


11


-



12



















Other Income, Net


30


4


2


15


-


-


24



75



















Income (Loss) Before Interest & Tax (1)


208


123


65


60


(3)


12


-



465



















Net Interest Expense (2)


(37)


(17)


(6)


(3)


(4)


(9)


(34)



(110)



















Income Tax (Expense) Benefit


(60)


(40)


(13)


(35)


17


(2)


16



(117)



















Equity Earnings Recorded Net of Income Tax


-


-


-


11


-


-


-



11



















Earnings Attributable to Noncontrolling Interests


(6)


-


(6)


-


-


-


(1)



(13)



















Earnings (Losses)


$   105


$        66


$       40


$    33


$          10


$            1


$           (19)



$   236























































(1) Management believes "Income (Loss) Before Interest & Tax" is a useful measurement of our segments' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations.



















(2) Net Interest Expense includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries.



















(3) Includes $63 million income tax expense resulting from a corporate reorganization in connection with the IEnova stock offerings.

(Logo: http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO)

SOURCE Sempra Energy



RELATED LINKS
http://www.sempra.com

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn

Next in Gas News

 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 
Area to test

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release