trending Market Intelligence /marketintelligence/en/news-insights/trending/mSWvfBDOmiVziQ7KgiABhA2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Sempra cuts FY'16 guidance after missing Q1 analyst estimates by wide margin

Q3: U.S. Solar and Wind Power by the Numbers

Path to Carbon-Free Power Generation by 2035

The Growing Importance of Data Centers for European & U.S. Renewable Projects

CAISO and ERCOT Power Forecasts by the Hour

Sempra cuts FY'16 guidance after missing Q1 analyst estimates by wide margin

on May 4lowered its 2016adjusted earnings guidance to a range of $4.60 per share to $5.00 per shareafter recording a year-over-year drop in first-quarter 2016 earnings.

Therevised guidance reflects the anticipated reduction in 2016 earnings ofapproximately $60 million, or 24 cents per share, related to the pendingsale of Sempra'sinterest in Rockies ExpressPipeline LLC, Sempra said in its earnings release.

Sempraalso set its 2020 EPS guidance range at $7.20 to $7.80 — reflecting an expectedcompound annual growth rate in adjusted earnings of 12% from 2016 through 2020.

Thecompany booked $370 million, or $1.47 per share, in first-quarter 2016 adjustedearnings, down from $428 million, or $1.71 per share, a year ago.

Theresult also misses the S&P Global Market Intelligence consensus normalizedEPS estimate of $1.66.

Thecompany said its books for the quarter were impacted by the delay of a final2016-2018 general rate case decision from the California Public UtilitiesCommission for SouthernCalifornia Gas Co. and SanDiego Gas & Electric Co.

First-quarterrevenues were down to $2.62 billion in 2016 from $2.68 billion in 2015.

On aGAAP basis, Sempra reported first-quarter 2016 earnings of $319 million, or$1.27 per share, compared with $437 million, or $1.74 per share, during thecomparable period in 2015.

GAAPresults in the most recent quarter included a $27 million after-tax lossrelated to the Rockies Express Pipeline transaction and $24 million of deferred tax expenserelated to the planned sale of the Termoeléctrica de Mexicali power plant.Results for the 2015 quarter included a $13 million after-tax benefit due tothe reduction in the loss related to the San Onofre nuclear generating stationclosure, offset by $4 million after-tax in LNG development expenses, thecompany noted.

SoCalGasrecorded a $19 million year-over-year drop in first-quarter earnings to $195million, due primarily to higher nonrefundable operating costs.

Meanwhile,the utility's updated estimate of costsrelated to the Aliso Canyon natural gas leak is $665 million. Concurrently, ithas recorded an insurance receivable of $660 million.

SDG&Eposted first-quarter 2016 adjusted earnings of $129 million, compared with $147million in the comparable quarter of 2015.

SempraNatural Gas recorded a loss of $36 million in the first quarter 2016, comparedwith earnings of $2 million a year ago. First-quarter 2016 earnings for SempraRenewables were flat year over year at $13 million.

SempraSouth American Utilities' first-quarter 2016 earnings were down to $38 millionfrom $41 million in the comparable period of 2015. Earnings for Sempra Mexiconarrowed $30 million year over year to $17 million during the most recentquarter.