Service & Supply | Quarterly / Earnings Reports | Third Quarter (3Q) Update

Sempra Energy Mexican Operations Drives Revenue Growth

Share Print Bookmark    |    Wednesday,November 02,2016

Sempra Energy is reporting a third quarter earnings of $622 million up from $245 million in third quarter 2015.

Revenue by Region:

Sempra Mexico  : $332 million in 2016 compared to $64 million in 2015.

San Diego Gas & Electric  : $183 million up from $170 million in YOY quarter.

Southern California Gas Co. : no earnings, vs loss of $8 million in YOY quarter.

Third-quarter earnings for Sempra Mexico were $332 million in 2016, compared with $63 million in 2015, due primarily to the $350 million after-tax remeasurement gain on the Gasoductos de Chihuahua acquisition, offset by the $65 million after-tax charge related to the planned sale of the Termoeléctrica de Mexicali plant and beneficial effects of foreign currency and inflation in last year’s third quarter.

For the nine-month period, Sempra Mexico had earnings of $407 million in 2016, compared with $160 millionin 2015.

Last month, IEnova raised $1.6 billion in a follow-on equity offering, primarily to finance recent and pending acquisitions. Sempra Energy participated in the offering by purchasing $351 million of IEnova stock and now owns approximately 66 percent of IEnova.

In September, IEnova announced it had completed the acquisition of PEMEX Transformación Industrial’s 50-percent equity interest in the GdC joint venture for approximately $1.14 billion, plus the assumption of $364 million in long-term debt. The assets included in the transaction comprise three natural gas pipelines, an ethane pipeline, and a liquid petroleum gas pipeline and associated storage terminal.

In September, IEnova announced the expected addition of nearly 400 megawatts of renewable energy in Mexico. Included were two solar energy projects totaling 141 megawatts, awarded by Mexico’s Centro Nacional de Control de Energía. The two projects will be fully contracted and are expected to be completed in the first half of 2019.  Also included was the agreement to purchase Mexico’s largest wind farm, the 252-megawatt Ventika wind facility, which went into service in April. The Ventika purchase is expected to be completed in the fourth quarter 2016.