Sempra Posts Strong 2018 Earnings

Sempra Energy reported February 26 that its 2018 full-year earnings rose to $924mn, compared with $256mn in 2017.

On an adjusted basis, the company's 2018 earnings equalled $1.5bn, up from $1.37bn the previous year. Sempra reported earnings of $864mn in the fourth quarter.

The results come despite a transitional period for the company. Sempra recorded a loss of $561mn in the second quarter of 2018 due to impairments on sales of US midstream assets and wind energy investments. That process is set to continue. Sempra expects the sale of its non-utility natural gas storage facilities in the US for $332mn to go through this quarter.

The company announced February 25 that it plans to launch the sale of South American assets in March. The assets up for grabs include Peruvian electricity utility Luz del Sur and Chilean peer Chilquinta Energia.

While still considered important for gas utilities, natural gas storage is becoming less important in the North American gas marketing industry, as the proliferation of shale gas wells has turned natural gas into more of a “just in time” commodity.

Meanwhile, last month, Sempra received final environmental approval for its Port Arthur LNG export project. The company, which agreed a deal to supply Poland with 2mt/y from 2022, is expected to take a final investment decision soon. 

"Our strong 2018 operational and financial results confirm that we're on track to fulfill our mission to become North America's premier energy infrastructure company," said Sempra CEO Jeffrey W. Martin. "Over the past year, we made significant strides in all aspects of our business … [and] executed our strategy to realign our portfolio to support our core mission."