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    Sempra Energy Earnings Surge in Q2


Exit from South America provided $1.7bn boost

by: Dale Lunan

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Sempra Energy Earnings Surge in Q2

US energy infrastructure company Sempra Energy reported Q2 2020 earnings of $2.24bn on August 5, up from $354mn a year ago and helped by a $1.7bn gain on the sale of its South American businesses. Discounting that gain, adjusted earnings for the quarter were $485mn, up from $309mn in Q2 2019.

Through the first six months, earnings were $2.999bn, compared with $795mn in the year-earlier period, while adjusted earnings increased to $1.42bn from $843mn.

“Our year-to-date financial results set us up well to post strong results for the full year in 2020 and are a credit to the dedication and teamwork of our employees who have continued to deliver for our stakeholders amid the pandemic and a challenging economic backdrop,” CEO Jeffrey Martin said. “Over the last several years, the disciplined execution of our North American strategy has made our company stronger. This can be seen in the quality and strength of our earnings, as well as the visibility we now have to our future growth.”

With its departure from South America in June, Sempra Energy is now focused on transmission and distribution infrastructure in the most attractive North American markets – California, Texas and Mexico – and in North America’s LNG export market.

Among the latter, full commercial operation at Phase 1 of the Cameron LNG project in Louisiana is imminent, following substantial completion of the third and final train on July 31, while work continues with the Mexican government to obtain a 20-year export permit for the proposed Energia Costa Azul liquefaction and export facility under development in Baja California. Phase 1, which is being developed by Sempra LNG and Mexico’s IEnova, comprises a single 2.5mn mt/yr liquefaction train.