Sempra Energy reports strong 3Q19 earnings

Finance

Sempra Energy has reported 3Q19 earnings of US$813 million, or US$2.84 per diluted share, up from US$274 million, or US$0.99 per diluted share, in the third quarter 2018. On an adjusted basis, the company’s third-quarter 2019 earnings were US$425 million, or US$1.50 per diluted share, compared to US$339 million, or US$1.23 per diluted share, in the third quarter 2018.

“At Sempra Energy, we laid out a plan last year to increasingly focus on core markets where we can produce the best results for our stakeholders,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “With our recently announced agreements to sell our South American businesses, it reflects our ongoing commitment to simplify our strategy. Our year-to-date financial results are a product of that more focused strategy, and the hard work and dedication of all of our employees.”

Sempra Energy’s earnings for the first nine months of 2019 were US$1.61 billion, or US$5.74 per diluted share, compared with earnings of US$60 million, or US$0.23 per diluted share, in the first nine months of 2018. Adjusted earnings for the first nine months of 2019 were US$1.46 billion, or US$5.23 per diluted share, compared with US$1.07 billion, or US$4.00 per diluted share, in the first nine months of 2018.

These financial results reflect certain significant items, as described on an after-tax basis in the following table of GAAP earnings reconciled to adjusted earnings for the third quarter and first nine months of 2019 and 2018.

Operating highlights: Sempra LNG

Sempra Energy is continuing to advance its LNG development projects.

The company announced in October that it has entered into a memorandum of understanding (MOU) with Mitsui & Co., Ltd. (Mitsui) reflecting the parties’ preliminary agreement for Mitsui’s participation in the Cameron LNG Phase 2 project, and a future expansion of the Energía Costa Azul (ECA) LNG project in Baja California, Mexico. The MOU is non-binding and contemplates the continued mutual support for the development of Cameron LNG Phase 2, including Mitsui’s potential purchase of up to one-third of the available capacity of the project, as well as the potential offtake of approximately 1 million tpy of LNG and equity participation in a future expansion of ECA LNG.

In September, Sempra LNG also entered into a MOU with China Three Gorges Corporation regarding potential cooperation in supplying LNG to support demand growth in China, including the growth of natural gas power generation.

In August, the Cameron LNG liquefaction-export project in Hackberry, La., began commercial operations at Train 1 of the facility. The project, including Trains 2 and 3, is over 96% complete. Commissioning of Train 2 is underway, and the previously disclosed project timeline remains unchanged.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01112019/sempra-energy-reports-strong-3q19-earnings/