Sempra Energy on Tuesday reported lower earnings in 2017 thanks to the impact of the Republican-led tax changes, but projected significantly higher results per share in 2018.
The San Diego-based energy holding company earned $256 million, or $1.01 per share, in 2017, compared to $1.37 billion, or $5.46 per share, in 2016. Revenue increased to $11.2 billion in 2017 from $10.2 billion last year.
The 2017 results included an $870 million income-tax expense in the fourth quarter related to the impact of the Tax Cuts and Jobs Act of 2017 on undistributed foreign earnings. Qualcomm, another large San Diego company with extensive international operations, took a $6 billion tax-related charge at the end of 2017.
Sempra said operating earnings for the year rose to $1.37 billion, or $5.42 per share, from $1.27 billion, or $5.05 per share, in 2016.
“In 2017, we produced outstanding financial and operating results, while making significant investments to fuel our future growth,” said Debra L. Reed, chairman, president and CEO of Sempra.
For 2018, the utility is projecting per-share earnings of of $5.30 to $5.80, reflecting both its planned acquisition of Texas’ largest utility and the impact of federal tax reform.
Sempra stock closed up 53 cents at $110.04 Tuesday on the New York Stock Exchange.
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