Company to Begin Share Repurchase in Third Quarter
Sempra Energy today reported second-quarter 2010 earnings of $222 million, or $0.89 per diluted share, up from earnings of $198 million, or $0.80 per diluted share, in 2009.
Second-quarter 2009 earnings included a charge of $64 million, or $0.26 per diluted share, for an asset write-off at Sempra Pipelines & Storage.
Sempra Energy’s earnings for the first six months of 2010 were $328 million, or $1.31 per diluted share, compared with $514 million, or $2.09 per diluted share, in 2009. First-quarter 2010 earnings included a charge of $96 million after tax, or $0.38 per diluted share, for a proposed energy-crisis litigation settlement.
“Our core businesses performed well in the quarter,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “Last month, we completed our transaction with J.P. Morgan to sell a major portion of our commodities joint venture — the first step in our exit from that business. Our proceeds from the sale and other distributions will be approximately $1 billion. Additionally, last month, San Diego Gas & Electric reached a significant milestone with receipt of the final major regulatory approval for its Sunrise Powerlink transmission line. This project will increase electric grid reliability and create a new pathway for clean, renewable energy.”
Sempra Energy today also announced that the company will begin a $500 million accelerated share-repurchase program later this quarter.
SUBSIDIARY OPERATING RESULTS
San Diego Gas & Electric
In the second quarter 2010, earnings for San Diego Gas & Electric (SDG&E) were $75 million, up from $70 million in last year’s second quarter.
For the first six months of 2010, SDG&E earned $158 million, compared with $169 million during the same period last year.
On July 13, SDG&E received approval from the U.S. Forest Service and now is moving forward with construction of the $1.9 billion Sunrise Powerlink transmission line project. The U.S. Forest Service permit was the last major regulatory approval required for the project. SDG&E previously received approvals from the California Public Utilities Commission and the federal Bureau of Land Management.
