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    Sempra Raises Earnings Guidance, Refocuses


North American infrastructure, including LNG and transmission and distribution, will be Sempra's growth engines, now it has sold out of Latin America.

by: William Powell

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Sempra Raises Earnings Guidance, Refocuses

US utility Sempra has raised its earnings guidance for this year, following its $5.82bn sales of assets in South America. The company's investments are now focused on top-tier markets in North America, it said June 30. 

As a result of enhanced visibility into earnings growth related to progress made on the company's strategic plan, Sempra Energy said it was raising its full-year 2020 US GAAP earnings-per-share (EPS) guidance range to $12.38-$13.32 from $11.88-$13.02. The company's full-year 2020 adjusted EPS guidance range also has been increased to $7.20-$7.80, from $6.70-$7.50.

"By successfully executing on a broad capital recycling programme, the past two years have proven to be transformational for our company and have allowed us to efficiently concentrate our capital program on the most attractive markets in North America," said CFO Trevor Mihalik.

Over the past two years, Sempra Energy has repositioned its infrastructure portfolio through the divestiture of non-core assets and is committed to invest a record $32bn in capital over its 2020-2024 five-year plan with a focus on North American LNG and on transmission and distribution investments in its Texas and California utilities.

In total, including the sale of the company's South American businesses and the company's US renewables business and non-utility natural gas storage assets, which was completed in 2019, the company has generated some $8.3bn in total cash proceeds from these divestitures. "These proceeds are being used to support our growth initiatives, strengthen our balance sheet and return value to our owners," said Mihalik.