San Diego-based Sempra on Thursday reported increased earnings in the first quarter and announced plans for $40 billion in capital spending over the next five years.
The utility company earned $969 million, or $3.07 per share, in the first quarter, compared to $612 million, or $1.93 per share, in the same quarter last year. Revenue rose to $6.56 billion from $3.82 billion a year ago.
Much of the revenue increase was due to a spike in the cost of natural gas, which is billed at cost, and the utility said that after adjustments for one-time charges profits were essentially unchanged.
In announcing the capital program, company officials said they see major opportunities to improve safety, bolster reliability and support the delivery of cleaner sources of energy. San Diego Gas & Electric and Southern California Gas would receive $21.4 billion of the planned spending.
“At Sempra, our strategy is focused on building new energy networks right here in North America that improve energy security and support decarbonization — and we are seeing significant opportunities,” said Jeffrey W. Martin, chairman and chief executive officer.
“Our strategy, together with our commitment to safety, operational excellence and disciplined capital allocation, positions us to deliver another strong year of financial performance,” he said.
Sempra said full-year profits should range from $8.76 to $9.36 per share and predicted long-term growth of 6% to 8% annually.
The company’s stock rose by nearly a point to close at $153.49 per share on Wall Street.
Sempra serves 40 million utility customers in California, Texas and Mexico, and is a major supplier of liquified natural gas for worldwide export.
