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Sempra highlights progression of Cameron LNG project

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LNG Industry,

Sempra Energy has announced it third-quarter 2015 earnings of $248 million, representing a fall from its third-quarter 2014 earnings of $348 million. Nonetheless, for the first nine months of 2015, Sempra Energy’s earnings were US$980 million, which is a rise from the US$864 million Sempra earned in the first nine months of 2014.

Debra Reed, the Chairman and CEO of Sempra, said: “Through three quarters, we are on track to exceed our 2015 financial and operational objectives, so we have raised our adjusted earnings guidance for the year […] During the third quarter, our California utilities made good progress in their General Rate Cases and our other businesses continued with their construction activities on major projects, including the Cameron LNG liquefaction-export facility.”

Sempra’s results from the first nine months of 2015 included a US$36 million after tax gain from the sale of the second block of Sempra US Gas & Power’s Mesquite Power facility. In addition to this, the results included US$7 million after tax in expenses on LNG development, as well as a benefit of US$13 million after tax from San Diego Gas & Electric (SDG&E). This was due to a reduced loss related to the San Onofre Nuclear Generating Station (SONGS). SDG&E recorded a charge of US$9 million in the first nine months of 2014 from the closure of SONGS. Not including items for 2015 and 2015, Sempra’s adjusted earnings from the first nine months of 2015 totaled US$938 million, which is the equivalent of US$3.75 per diluted share. This is a significant increase from the US$873 million, which works out as US$3.49 per diluted share, from the first nine months of 2014.

Southern California Gas Co. (SoCalGas) incorporated a California Public Utilities Commission (CPUC) order in the beginning of the first quarter of 2015 to recognise revenues from the utilities main activities on a seasonally adjusted basis (seasonality). The seasonality application in revenues will cause SoCalGas’ annual earnings to be reported in the first quarter of the year and the fourth quarter of the year. However, it will not affect the operating earnings or cash flow of the full year.

Sempra’s earnings from the third quarter of 2015 illustrated US$113 million lower earnings at SoCalGas because of seasonality, compared to the third quarter earnings of 2014. Furthermore, Sempra’s earnings were US$48 million lower at SoCalGas in the first nine months of 2015, owing to seasonality, compared with the first nine months of 2014. At SoCalGas, Sempra will also see a US$48 million after-tax benefit in the fourth quarter related to seasonality.

Edited from press release by David Rowlands

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