Business & Tech
Sempra Energy Earnings Hit By Costs Of 2007 Wildfires
The firm, which includes SDG&E, charged $208 million in costs related to the 2007 wildfires to its third quarter books.
SAN DIEGO COUNTY, CA – San Diego-based Sempra Energy Monday reported net income of $57 million, or 22 cents per diluted share, in the third quarter compared to $622 million, or $2.46 per diluted share, in the same period last year.
The firm, which counts San Diego Gas & Electric and Southern California Gas Co. among its subsidiaries, charged $208 million in costs related to the 2007 wildfires to its third quarter books. The move followed a proposed decision by administrative law judges with the California Public Utilities Commission that denied SDG&E's request to recover its wildfire costs.
Otherwise, Sempra would have earned $265 million, or $1.04 per diluted share, during the quarter, according to the company.
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"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," said Debra Reed, Sempra chair, president and CEO. "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."
Sempra Energy recently agreed to acquire Energy Future Holdings Corp., an indirect owner of about 80 percent of Oncor Electric Delivery Co. LLC, the largest electric utility in Texas.
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For the first nine months as a whole, Sempra reported net income of $757 million, or $2.99 per diluted share, compared with $991 million, or $3.93 per diluted share in the same period last year.
Among its major subsidiaries, SDG&E saw a third quarter net loss of loss of $28 million, compared with earnings of $183 million in last year's third quarter. For the first three quarters combined, net income was $276 million, compared with $419 million last year.
The figures were impacted by the charge for the wildfires.
Net income for Southern California Gas Co. was $7 million in the third quarter, compared with no earnings in last year's third quarter. SoCalGas' nine-month earnings were $268 million in 2017, compared with $198 million in 2016.
By City News Service / Image via Shutterstock
