USA: Sempra Energy Reports Improved 2010 Results

Sempra Energy reported 2010 earnings of $739 million, or $2.98 per diluted share, compared with 2009 earnings of $1.12 billion, or $4.52 per diluted share.

Excluding the results of Sempra Commodities, whose assets have been sold, Sempra Energy’s earnings per share for the full year rose 14 percent to $3.61 per diluted share in 2010 from $3.16 per diluted share in 2009. Sempra Commodities recorded a loss of $155 million, or $0.63 per diluted share, in 2010, compared with earnings of $338 million, or $1.36 per diluted share in 2009.

In the fourth quarter 2010, Sempra Energy’s earnings were $280 million, or $1.15 per diluted share, compared with $288 million, or $1.16 per diluted share, in the prior year’s quarter. Excluding the results of Sempra Commodities, Sempra Energy’s earnings per share for the fourth quarter rose 34 percent to $1.18 per diluted share in 2010 from $0.88 per diluted share in 2009.

“Exiting the commodities-trading business marks a new chapter for our company,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “We have narrowed our strategic focus to concentrate on utilities and contracted energy infrastructure, reducing both our risk profile and earnings volatility, while leveraging our core strengths. This business mix has allowed us to significantly increase dividends to our shareholders and reinvest capital for future growth.”

Earlier this week, Sempra Energy announced a 23-percent increase in the dividend on shares of the company’s common stock to $1.92 per share, on an annualized basis, from $1.56 per share. Sempra Energy’s board of directors also established a targeted dividend payout ratio of 45 percent to 50 percent of earnings.

Sempra LNG

In 2010, Sempra LNG had earnings of $68 million, up from $16 million in 2009. In the fourth quarter 2010, Sempra LNG had earnings of $18 million, compared with $35 million in the fourth quarter 2009, due primarily to reduced payments by customers for contracted cargoes that were not delivered.

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Source: Sempra Energy, February 25, 2011;