Sempra missed Wall Street estimates for second-quarter profit and revenue on Tuesday, as weakness in its California segment weighed on the electric and gas utility, sending its shares down nearly 2%.
The San Diego-based energy company posted an adjusted profit of 89 cents per share for the second quarter, below estimates of 94 cents per share, according to LSEG data.
The company’s total quarterly revenue fell nearly 10% to $3.01 billion, missing estimates of $3.4 billion.
The company, however, expects its Texas unit Onco to benefit from a surge in demand for power, primarily driven by artificial intelligence data centers’ need for power. Texas’s grid operator predicts a need for 152 gigawatts of power generation by 2030, a 78% increase from 2023.
“We expect approximately 40% of that future load to be served by Oncor,” an executive of the Sempra unit told analysts on a post-earning call.
Sempra CEO Jeffrey Martin said the company has received 341 new requests from large-load customers, representing about 80 gigawatts of potential load. Of these requests, nearly 74% would come from potential data centers.
Sempra’s California unit, which includes San Diego Gas & Electric and represents 82% of the company’s total revenue, posted a profit of $316 million in the second quarter, down from $339 million last year.
Meanwhile, revenue at the California unit dropped nearly 3% to $2.63 billion, and electric sales fell to 661 million kilowatt hours from 974 million a year ago.
