San Diego-based Sempra reported a 45% increase in annual earnings on Tuesday, attributing the growth to “strong financial and operational performance” by its liquefied natural gas export business.
The utility and energy-infrastructure company earned $3.03 billion, or $4.79 per share, in 2023, compared to $2.09 billion, or $3.31 per share, in the prior year. Revenue rose to $16.7 billion in 2023 from $14.4 billion in 2022.
“Strong business performance in 2023 reflects continued improvements in our corporate strategy and consistency in execution,” said Jeffrey W. Martin, chairman and CEO. “At Sempra, our goal is to give investors exposure to attractive growth in the energy infrastructure sector with the support of a growing dividend and a management team committed to providing superior, long-term total returns.”
The company said its California operations, which include San Diego Gas & Electric and Southern California Gas, earned $1.75 billion, compared to $1.51 billion a year ago. In Texas, earnings were down slightly at $694 million compared to $736 million in the prior year, though the company said “broad economic growth is driving new investment opportunities” in that state.
The biggest growth in earnings, from $310 million in 2022 to $877 million in 2023, came from the export of liquified U.S. natural gas amid sanctions on Russian gas exports. The company’s first export facility in Louisiana has been operating since 2020, and two new ones are in development.
“Sempra Infrastructure delivered strong financial and operational performance in 2023, a testament to its effectiveness as a high-growth, lower-carbon business focused on delivering cleaner and more secure energy to customers around the world,” the company said.
The company said it expects to earn between $4.60 and $4.90 per share in 2024, potentially up slightly from the 2023 performance.
The firm’s stock opened higher on Wall Street, but was down 0.36 points at $70.55 in afternoon trading.
Sempra serves nearly 40 million consumers in California, Texas, Mexico and global energy markets.
