Sempra Energy on Friday reported a decline in annual profit, but forecast 6% to 8% long-term growth in earnings per share and raised the annual dividend.
The San Diego-based utility company earned $1.25 billion, or $4.01 per share, in 2021, down from $3.76 billion, of $12.88 per share, in 2020.
However, the latest results included costs of $1.1 billion to settle litigation over the natural gas leak in Aliso Canyon as well as other one-time charges. On an adjusted basis, Sempra earned $2.64 billion, or $8.43 per share, compared to $2.34 billion, or $8.00 per share, in 2020
In the fourth quarter, Sempra earned $604 million, or $1.90 per share, compared to $414 million, or $1.43 per, in the same quarter of 2020.
“2021 was an important step in our transformation journey, capping off another year of investment focus on our U.S. utilities where rate base has nearly tripled in the last four years,” said Jeffrey W. Martin, chairman and chief executive officer. “With the benefit of added scale, we have improved the safety and reliability of our services and visibility to future earnings growth.”
The company, which owns San Diego Gas & Electric and SoCalGas, said it “continues to see robust opportunities to invest over $33 billion in its California and Texas utilities to improve safety, bolster reliability and support the delivery of cleaner sources of energy” over the next five years.
Sempra said it expects to earn $8.10 to $8.70 per share in 2022, and forecast earnings to grow at a compound annual rate of 6% to 8% through 2026.
The board of directors declared a $1.145 per share quarterly dividend on the company’s common stock, which is payable April 15 to shareholders of record as of March 25. This represents an increase from $4.40 to $4.58 on an annualized basis. It is the 12th consecutive annual increase.
Wall Street was impressed with the report, with the stock rising by 7.21 to close at 141.44 Friday following the earnings release before markets opened.
Martin said the company aims to have net-zero emissions by 2050 through investments in electric storage, renewable gas, green hydrogen and other technologies.
“The energy needs of customers are changing,” said Martin. “That is why we have been intentional about updating our portfolio over the last several years to focus on the electrification of consumer markets, the needed expansion of energy networks and the global shift to cleaner power, all of which is generating significant growth across our utility and infrastructure businesses.”
Sempra serves nearly 40 million consumers with primary markets in California and Texas.
