SAN DIEGO, Feb. 24, 2011 /PRNewswire/ -- Sempra Energy (NYSE: SRE) today reported 2010 earnings of $739 million, or $2.98 per diluted share, compared with 2009 earnings of $1.12 billion, or $4.52 per diluted share.
(Logo: http://photos.prnewswire.com/prnh/20110108/SEMPRAENERGYLOGO)
Excluding the results of Sempra Commodities, whose assets have been sold, Sempra Energy's earnings per share for the full year rose 14 percent to $3.61 per diluted share in 2010 from $3.16 per diluted share in 2009. Sempra Commodities recorded a loss of $155 million, or $0.63 per diluted share, in 2010, compared with earnings of $338 million, or $1.36 per diluted share in 2009.
In the fourth quarter 2010, Sempra Energy's earnings were $280 million, or $1.15 per diluted share, compared with $288 million, or $1.16 per diluted share, in the prior year's quarter. Excluding the results of Sempra Commodities, Sempra Energy's earnings per share for the fourth quarter rose 34 percent to $1.18 per diluted share in 2010 from $0.88 per diluted share in 2009.
"Exiting the commodities-trading business marks a new chapter for our company," said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. "We have narrowed our strategic focus to concentrate on utilities and contracted energy infrastructure, reducing both our risk profile and earnings volatility, while leveraging our core strengths. This business mix has allowed us to significantly increase dividends to our shareholders and reinvest capital for future growth."
Earlier this week, Sempra Energy announced a 23-percent increase in the dividend on shares of the company's common stock to $1.92 per share, on an annualized basis, from $1.56 per share. Sempra Energy's board of directors also established a targeted dividend payout ratio of 45 percent to 50 percent of earnings.
SUBSIDIARY OPERATING RESULTS
San Diego Gas & Electric
Earnings for San Diego Gas & Electric (SDG&E) rose to $369 million in 2010 from $344 million in 2009. SDG&E's fourth-quarter 2010 earnings were $105 million, up from $67 million in the fourth quarter 2009, due primarily to higher authorized margins, favorable resolution of a regulatory matter and the favorable impact of the resolution of prior years' tax issues.
Southern California Gas Co.
Southern California Gas Co. (SoCalGas) earned $286 million in 2010, up from $273 million in 2009. In the fourth quarter 2010, SoCalGas earned $74 million, compared with $75 million in the prior year's fourth quarter.
Sempra Generation
Sempra Generation's 2010 earnings were $103 million, compared with $169 million in 2009. Sempra Generation's fourth-quarter earnings were $43 million in 2010, compared with $45 million in 2009. Results in 2010 included $87 million in after-tax charges related to a litigation settlement.
In December, Sempra Generation completed the sale of its 50-percent interest in the Elk Hills Power generation facility to Occidental Petroleum Corporation, Inc., for $175 million. The seven-year-old natural gas-fueled power plant, located near Bakersfield, Calif., was jointly owned by Sempra Generation and Occidental.
Also in December, Sempra Generation completed construction on its Copper Mountain Solar plant outside Las Vegas. The power from the 48-megawatt facility – currently the largest photovoltaic solar power plant in the U.S. – is being sold to Pacific Gas & Electric under a 20-year contract.
Sempra Pipelines & Storage
Sempra Pipelines & Storage's earnings increased to $159 million in 2010 from $101 million in 2009. Fourth-quarter earnings for Sempra Pipelines & Storage were $39 million in 2010, compared with $37 million in 2009.
Last month, Sempra Pipelines & Storage announced an agreement to acquire AEI's stake in two South American electric utilities for approximately $875 million. Currently, Sempra Pipelines & Storage and AEI jointly own Chilquinta Energia S.A. in Chile and Luz del Sur in Peru, with the remaining shares of Luz del Sur held by institutional investors and the general public. Upon completion of the transaction, Sempra Pipelines & Storage will own 100 percent of Chilquinta Energia and approximately 76 percent of Luz del Sur. Scheduled to close in the second quarter 2011, the acquisition is expected to contribute additional earnings per share for Sempra Energy of approximately $0.15 in 2011 and $0.22 in 2012. Completion of the transaction is subject to obtaining regulatory approvals and the resolution of certain tax matters.
Sempra LNG
In 2010, Sempra LNG had earnings of $68 million, up from $16 million in 2009. In the fourth quarter 2010, Sempra LNG had earnings of $18 million, compared with $35 million in the fourth quarter 2009, due primarily to reduced payments by customers for contracted cargoes that were not delivered.
Sempra Commodities
Sempra Commodities recorded a loss of $7 million, or $0.03 per diluted share, in the fourth quarter 2010, compared with earnings of $69 million, or $0.28 per diluted share in the fourth quarter 2009.
In December, Sempra Energy and The Royal Bank of Scotland completed the sale of the last of the principal assets of their RBS Sempra Commodities joint venture to a unit of JP Morgan Chase & Co. These assets included wholesale natural gas and power trading agreements, as well as over-the-counter and exchange-traded transactions, with counterparties across North America.
2011 Outlook
Sempra Energy today reaffirmed its 2011 earnings-per-share outlook range of $4.00 to $4.30.
Internet Broadcast
Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EST with senior management of the company. Access is available by logging onto the Web site at www.sempra.com. For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 3365622.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2010 revenues of $9 billion. The Sempra Energy companies' 13,500 employees serve about 25 million consumers worldwide.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by words like "believes," "expects," "anticipates," "intends," "plans," "estimates," "may," "will," "would," "could," "should," "potential," "target," "depends," or similar expressions, or discussions of strategies, plans or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements. Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board, and other regulatory and governmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company. These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com.
Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Energy Trading LLC are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and Sempra Energy Trading LLC are not regulated by the California Public Utilities Commission.
SEMPRA ENERGY |
||||||||
Table A |
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
Three months ended |
Years ended |
|||||||
December 31, |
December 31, |
|||||||
(Dollars in millions, except per share amounts) |
2010 |
2009 |
2010 |
2009 |
||||
(unaudited) |
||||||||
REVENUES |
||||||||
Sempra Utilities |
$ 1,820 |
$ 1,838 |
$ 6,819 |
$ 6,220 |
||||
Sempra Global and parent |
525 |
618 |
2,184 |
1,886 |
||||
Total revenues |
2,345 |
2,456 |
9,003 |
8,106 |
||||
EXPENSES AND OTHER INCOME |
||||||||
Sempra Utilities: |
||||||||
Cost of natural gas |
(498) |
(533) |
(1,900) |
(1,530) |
||||
Cost of electric fuel and purchased power |
(157) |
(164) |
(637) |
(672) |
||||
Sempra Global and parent: |
||||||||
Cost of natural gas, electric fuel and purchased power |
(268) |
(301) |
(1,155) |
(976) |
||||
Other cost of sales |
(23) |
(28) |
(91) |
(80) |
||||
Litigation expense |
15 |
(4) |
(169) |
(4) |
||||
Other operation and maintenance |
(717) |
(794) |
(2,499) |
(2,467) |
||||
Depreciation and amortization |
(224) |
(207) |
(867) |
(775) |
||||
Franchise fees and other taxes |
(84) |
(68) |
(327) |
(296) |
||||
Write-off of long-lived assets |
- |
- |
- |
(132) |
||||
Equity earnings (losses): |
||||||||
RBS Sempra Commodities LLP |
(24) |
79 |
(314) |
463 |
||||
Other |
(2) |
9 |
22 |
36 |
||||
Other income, net |
58 |
52 |
140 |
149 |
||||
Interest income |
3 |
5 |
16 |
21 |
||||
Interest expense |
(113) |
(110) |
(436) |
(367) |
||||
Income before income taxes and equity earnings of certain |
||||||||
unconsolidated subsidiaries |
311 |
392 |
786 |
1,476 |
||||
Income tax expense |
(17) |
(95) |
(102) |
(422) |
||||
Equity earnings, net of income tax |
7 |
9 |
49 |
68 |
||||
Net income |
301 |
306 |
733 |
1,122 |
||||
(Earnings) losses attributable to noncontrolling interests |
(18) |
(15) |
16 |
7 |
||||
Preferred dividends of subsidiaries |
(3) |
(3) |
(10) |
(10) |
||||
Earnings |
$ 280 |
$ 288 |
$ 739 |
$ 1,119 |
||||
Basic earnings per common share |
$ 1.17 |
$ 1.18 |
$ 3.02 |
$ 4.60 |
||||
Weighted-average number of shares outstanding, basic (thousands) |
239,465 |
244,923 |
244,736 |
243,339 |
||||
Diluted earnings per common share |
$ 1.15 |
$ 1.16 |
$ 2.98 |
$ 4.52 |
||||
Weighted-average number of shares outstanding, diluted (thousands) |
242,519 |
248,749 |
247,942 |
247,384 |
||||
Dividends declared per share of common stock |
$ 0.39 |
$ 0.39 |
$ 1.56 |
$ 1.56 |
||||
SEMPRA ENERGY |
|||||||
Table B |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
December 31, |
December 31, |
||||||
(Dollars in millions) |
2010 |
2009 |
|||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ 912 |
$ 110 |
|||||
Restricted cash |
131 |
35 |
|||||
Accounts receivable |
1,032 |
1,130 |
|||||
Due from unconsolidated affiliates |
34 |
41 |
|||||
Income taxes receivable |
248 |
221 |
|||||
Deferred income taxes |
75 |
10 |
|||||
Inventories |
258 |
197 |
|||||
Regulatory assets |
90 |
54 |
|||||
Fixed-price contracts and other derivatives |
81 |
77 |
|||||
Insurance receivable related to wildfire litigation |
- |
273 |
|||||
Settlement receivable related to wildfire litigation |
300 |
- |
|||||
Other |
192 |
147 |
|||||
Total current assets |
3,353 |
2,295 |
|||||
Investments and other assets: |
|||||||
Restricted cash |
27 |
- |
|||||
Regulatory assets arising from pension and other postretirement |
|||||||
benefit obligations |
869 |
959 |
|||||
Regulatory assets arising from wildfire litigation costs |
364 |
- |
|||||
Other regulatory assets |
934 |
844 |
|||||
Nuclear decommissioning trusts |
769 |
678 |
|||||
Investment in RBS Sempra Commodities LLP |
787 |
2,172 |
|||||
Other investments |
2,164 |
2,151 |
|||||
Goodwill and other intangible assets |
540 |
524 |
|||||
Sundry |
600 |
608 |
|||||
Total investments and other assets |
7,054 |
7,936 |
|||||
Property, plant and equipment, net |
19,876 |
18,281 |
|||||
Total assets |
$ 30,283 |
$ 28,512 |
|||||
Liabilities and Equity |
|||||||
Current liabilities: |
|||||||
Short-term debt |
$ 158 |
$ 618 |
|||||
Accounts payable |
864 |
693 |
|||||
Due to unconsolidated affiliates |
36 |
29 |
|||||
Dividends and interest payable |
188 |
190 |
|||||
Accrued compensation and benefits |
311 |
264 |
|||||
Regulatory balancing accounts, net |
241 |
382 |
|||||
Current portion of long-term debt |
349 |
573 |
|||||
Fixed-price contracts and other derivatives |
106 |
95 |
|||||
Customer deposits |
129 |
145 |
|||||
Reserve for wildfire litigation |
639 |
270 |
|||||
Other |
765 |
629 |
|||||
Total current liabilities |
3,786 |
3,888 |
|||||
Long-term debt |
8,980 |
7,460 |
|||||
Deferred credits and other liabilities: |
|||||||
Due to unconsolidated affiliate |
- |
2 |
|||||
Customer advances for construction |
154 |
146 |
|||||
Pension and other postretirement benefit obligations, net of plan assets |
1,105 |
1,252 |
|||||
Deferred income taxes |
1,561 |
1,318 |
|||||
Deferred investment tax credits |
50 |
54 |
|||||
Regulatory liabilities arising from removal obligations |
2,630 |
2,557 |
|||||
Asset retirement obligations |
1,449 |
1,277 |
|||||
Other regulatory liabilities |
138 |
181 |
|||||
Fixed-price contracts and other derivatives |
290 |
312 |
|||||
Deferred credits and other |
823 |
735 |
|||||
Total deferred credits and other liabilities |
8,200 |
7,834 |
|||||
Contingently redeemable preferred stock of subsidiary |
79 |
79 |
|||||
Equity: |
|||||||
Total Sempra Energy shareholders' equity |
9,027 |
9,007 |
|||||
Preferred stock of subsidiaries |
100 |
100 |
|||||
Other noncontrolling interests |
111 |
144 |
|||||
Total equity |
9,238 |
9,251 |
|||||
Total liabilities and equity |
$ 30,283 |
$ 28,512 |
|||||
SEMPRA ENERGY |
|||||
Table C |
|||||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS |
|||||
Years ended December 31, |
|||||
(Dollars in millions) |
2010 |
2009 |
|||
Cash Flows from Operating Activities: |
|||||
Net income |
$ 733 |
$ 1,122 |
|||
Adjustments to reconcile net income to net cash |
|||||
provided by operating activities: |
|||||
Depreciation and amortization |
867 |
775 |
|||
Gains on sale of assets |
- |
(3) |
|||
Deferred income taxes and investment tax credits |
48 |
295 |
|||
Equity losses (earnings) |
243 |
(567) |
|||
Write-off of long-lived assets |
- |
132 |
|||
Fixed-price contracts and other derivatives |
13 |
(30) |
|||
Other |
(55) |
(45) |
|||
Net change in other working capital components |
58 |
(256) |
|||
Distributions from RBS Sempra Commodities LLP |
198 |
407 |
|||
Changes in other assets |
54 |
139 |
|||
Changes in other liabilities |
(5) |
(94) |
|||
Net cash provided by operating activities |
2,154 |
1,875 |
|||
Cash Flows from Investing Activities: |
|||||
Expenditures for property, plant and equipment |
(2,062) |
(1,912) |
|||
Proceeds from sale of assets |
303 |
179 |
|||
Expenditures for investments and acquisition of businesses, |
|||||
net of cash acquired |
(611) |
(939) |
|||
Distributions from RBS Sempra Commodities LLP |
849 |
- |
|||
Distributions from other investments |
371 |
23 |
|||
Purchases of nuclear decommissioning and other trust assets |
(371) |
(267) |
|||
Proceeds from sales by nuclear decommissioning and other trusts |
372 |
230 |
|||
Decrease in restricted cash |
195 |
37 |
|||
Increase in restricted cash |
(318) |
(45) |
|||
Decrease in notes receivable from unconsolidated affiliate |
- |
100 |
|||
Purchase of bonds issued by unconsolidated affiliate |
- |
(50) |
|||
Other |
(11) |
(28) |
|||
Net cash used in investing activities |
(1,283) |
(2,672) |
|||
Cash Flows from Financing Activities: |
|||||
Common dividends paid |
(364) |
(341) |
|||
Preferred dividends paid by subsidiaries |
(10) |
(10) |
|||
Issuances of common stock |
40 |
73 |
|||
Repurchases of common stock |
(502) |
(22) |
|||
Issuances of debt (maturities greater than 90 days) |
1,125 |
2,151 |
|||
Payments on debt (maturities greater than 90 days) |
(905) |
(435) |
|||
Increase (decrease) in short-term debt, net |
568 |
(659) |
|||
Payments on notes payable to unconsolidated affiliate |
- |
(100) |
|||
Purchase of noncontrolling interest |
- |
(94) |
|||
Other |
(21) |
13 |
|||
Net cash (used in) provided by financing activities |
(69) |
576 |
|||
Increase (decrease) in cash and cash equivalents |
802 |
(221) |
|||
Cash and cash equivalents, January 1 |
110 |
331 |
|||
Cash and cash equivalents, December 31 |
$ 912 |
$ 110 |
|||
SEMPRA ENERGY |
||||||||||
Table D |
||||||||||
BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS |
||||||||||
Three months ended |
Years ended |
|||||||||
December 31, |
December 31, |
|||||||||
(Dollars in millions) |
2010 |
2009 |
2010 |
2009 |
||||||
(unaudited) |
||||||||||
Earnings (Losses) |
||||||||||
San Diego Gas & Electric |
$ 105 |
$ 67 |
$ 369 |
$ 344 |
||||||
Southern California Gas |
74 |
75 |
286 |
273 |
||||||
Sempra Generation |
43 |
45 |
103 |
169 |
||||||
Sempra Pipelines & Storage |
39 |
37 |
159 |
101 |
||||||
Sempra LNG |
18 |
35 |
68 |
16 |
||||||
Parent & Other |
8 |
(40) |
(91) |
(122) |
||||||
Earnings before Sempra Commodities |
287 |
219 |
894 |
781 |
||||||
Sempra Commodities |
(7) |
69 |
(155) |
338 |
||||||
Earnings |
$ 280 |
$ 288 |
$ 739 |
$ 1,119 |
||||||
Three months ended |
Years ended |
|||||||||
December 31, |
December 31, |
|||||||||
(Dollars in millions) |
2010 |
2009 |
2010 |
2009 |
||||||
(unaudited) |
||||||||||
Capital Expenditures and Investments |
||||||||||
San Diego Gas & Electric |
$ 388 |
$ 322 |
$ 1,210 |
$ 1,107 |
||||||
Southern California Gas |
166 |
144 |
503 |
480 |
||||||
Sempra Generation |
314 |
69 |
346 |
276 |
||||||
Sempra Pipelines & Storage |
55 |
227 |
590 |
950 |
||||||
Sempra LNG |
9 |
5 |
18 |
235 |
||||||
Parent & Other |
2 |
1 |
6 |
5 |
||||||
Eliminations(1) |
- |
- |
- |
(152) |
||||||
Consolidated Capital Expenditures and Investments |
$ 934 |
$ 768 |
$ 2,673 |
$ 2,901 |
||||||
(1) In the second quarter of 2009, SDG&E purchased $152 of industrial development bonds from Parent and Other. |
||||||||||
SEMPRA ENERGY |
||||||||||
Table E |
||||||||||
OTHER OPERATING STATISTICS (Unaudited) |
||||||||||
Three months ended |
Years ended |
|||||||||
December 31, |
December 31, |
|||||||||
SEMPRA UTILITIES |
2010 |
2009 |
2010 |
2009 |
||||||
Revenues (Dollars in millions) |
||||||||||
SDG&E (excludes intercompany sales) |
$ 802 |
$ 778 |
$ 3,041 |
$ 2,908 |
||||||
SoCalGas (excludes intercompany sales) |
$ 1,018 |
$ 1,060 |
$ 3,778 |
$ 3,312 |
||||||
Gas Sales (bcf) |
111 |
108 |
392 |
380 |
||||||
Transportation (bcf) |
143 |
133 |
517 |
554 |
||||||
Total Deliveries (bcf) |
254 |
241 |
909 |
934 |
||||||
Total Gas Customers (Thousands) |
6,635 |
6,607 |
||||||||
Electric Sales (Millions of kWhs) |
4,169 |
4,214 |
16,266 |
16,982 |
||||||
Direct Access (Millions of kWhs) |
837 |
829 |
3,202 |
3,119 |
||||||
Total Deliveries (Millions of kWhs) |
5,006 |
5,043 |
19,468 |
20,101 |
||||||
Total Electric Customers (Thousands) |
1,386 |
1,379 |
||||||||
SEMPRA GENERATION |
||||||||||
Power Sold (Millions of kWhs) |
5,614 |
5,742 |
20,886 |
22,268 |
||||||
SEMPRA PIPELINES & STORAGE |
||||||||||
(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method.) |
||||||||||
Natural Gas Sales (bcf) |
||||||||||
Argentina |
80 |
81 |
331 |
330 |
||||||
Mexico |
5 |
5 |
21 |
19 |
||||||
Mobile Gas |
10 |
8 |
37 |
32 |
||||||
Natural Gas Customers (Thousands) |
||||||||||
Argentina |
1,756 |
1,710 |
||||||||
Mexico |
89 |
91 |
||||||||
Mobile Gas |
91 |
92 |
||||||||
Electric Sales (Millions of kWhs) |
||||||||||
Peru |
1,513 |
1,409 |
5,958 |
5,560 |
||||||
Chile |
613 |
565 |
2,349 |
2,402 |
||||||
Electric Customers (Thousands) |
||||||||||
Peru |
890 |
863 |
||||||||
Chile |
593 |
576 |
||||||||
SEMPRA ENERGY |
||||||||||||||||||
Table F (Unaudited) |
||||||||||||||||||
Statement of Operations Data by Business Unit |
||||||||||||||||||
Three Months Ended December 31, 2010 |
||||||||||||||||||
(Dollars in millions) |
SDG&E |
SoCalGas |
Generation |
Pipelines & Storage |
LNG |
Commodities |
Consolidating Adjustments, Parent & Other |
Total |
||||||||||
Revenues |
$ 804 |
$ 1,030 |
$ 293 |
$ 88 |
$ 157 |
$ - |
$ (27) |
$ 2,345 |
||||||||||
Cost of Sales and Other Expenses |
(525) |
(832) |
(217) |
(59) |
(110) |
(8) |
4 |
(1,747) |
||||||||||
Litigation Adjustment (Expense) |
(6) |
11 |
(2) |
- |
- |
11 |
1 |
15 |
||||||||||
Depreciation & Amortization |
(98) |
(79) |
(18) |
(12) |
(13) |
- |
(4) |
(224) |
||||||||||
Equity Earnings (Losses) Recorded Before Income Tax |
- |
- |
(10) |
11 |
- |
(24) |
(3) |
(26) |
||||||||||
Other Income (Expense), Net |
28 |
4 |
(1) |
2 |
1 |
1 |
23 |
58 |
||||||||||
Income (Loss) Before Interest & Tax (1) |
203 |
134 |
45 |
30 |
35 |
(20) |
(6) |
421 |
||||||||||
Net Interest (Expense) Income (2) |
(38) |
(16) |
3 |
(8) |
(11) |
(4) |
(39) |
(113) |
||||||||||
Income Tax (Expense) Benefit |
(42) |
(44) |
(5) |
10 |
(6) |
17 |
53 |
(17) |
||||||||||
Equity Earnings Recorded Net of Income Tax |
- |
- |
- |
7 |
- |
- |
- |
7 |
||||||||||
Earnings Attributable to Noncontrolling Interests |
(18) |
- |
- |
- |
- |
- |
- |
(18) |
||||||||||
Earnings (Losses) |
$ 105 |
$ 74 |
$ 43 |
$ 39 |
$ 18 |
$ (7) |
$ 8 |
$ 280 |
||||||||||
Three Months Ended December 31, 2009 |
||||||||||||||||||
(Dollars in millions) |
SDG&E |
SoCalGas |
Generation |
Pipelines & Storage |
LNG |
Commodities |
Consolidating Adjustments, Parent & Other |
Total |
||||||||||
Revenues |
$ 780 |
$ 1,079 |
$ 337 |
$ 137 |
$ 153 |
$ - |
$ (30) |
$ 2,456 |
||||||||||
Cost of Sales and Other Expenses |
(560) |
(887) |
(250) |
(94) |
(77) |
(7) |
(13) |
(1,888) |
||||||||||
Litigation Adjustment (Expense) |
(1) |
(1) |
(1) |
(1) |
(1) |
- |
1 |
(4) |
||||||||||
Depreciation & Amortization |
(90) |
(73) |
(15) |
(13) |
(12) |
- |
(4) |
(207) |
||||||||||
Equity Earnings (Losses) Recorded Before Income Tax |
- |
- |
- |
11 |
- |
79 |
(2) |
88 |
||||||||||
Other Income (Expense), Net |
19 |
3 |
2 |
2 |
1 |
(1) |
26 |
52 |
||||||||||
Income (Loss) Before Interest & Tax (1) |
148 |
121 |
73 |
42 |
64 |
71 |
(22) |
497 |
||||||||||
Net Interest (Expense) Income (2) |
(30) |
(17) |
1 |
(7) |
(12) |
- |
(43) |
(108) |
||||||||||
Income Tax (Expense) Benefit |
(36) |
(29) |
(29) |
(6) |
(17) |
(2) |
24 |
(95) |
||||||||||
Equity Earnings Recorded Net of Income Tax |
- |
- |
- |
9 |
- |
- |
- |
9 |
||||||||||
(Earnings) Losses Attributable to Noncontrolling Interests |
(15) |
- |
- |
(1) |
- |
- |
1 |
(15) |
||||||||||
Earnings (Losses) |
$ 67 |
$ 75 |
$ 45 |
$ 37 |
$ 35 |
$ 69 |
$ (40) |
$ 288 |
||||||||||
(1) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations. |
|
(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
|
SEMPRA ENERGY |
||||||||||||||||||
Table F (Unaudited) |
||||||||||||||||||
Statement of Operations Data by Business Unit |
||||||||||||||||||
Year Ended December 31, 2010 |
||||||||||||||||||
(Dollars in millions) |
SDG&E |
SoCalGas |
Generation |
Pipelines & Storage |
LNG |
Commodities |
Consolidating Adjustments, Parent & Other |
Total |
||||||||||
Revenues |
$ 3,049 |
$ 3,822 |
$ 1,172 |
$ 350 |
$ 711 |
$ - |
$ (101) |
$ 9,003 |
||||||||||
Cost of Sales and Other Expenses |
(1,993) |
(3,007) |
(866) |
(246) |
(519) |
(23) |
45 |
(6,609) |
||||||||||
Litigation Adjustment (Expense) |
(18) |
10 |
(145) |
(1) |
(4) |
(9) |
(2) |
(169) |
||||||||||
Depreciation & Amortization |
(381) |
(309) |
(65) |
(44) |
(51) |
- |
(17) |
(867) |
||||||||||
Equity Earnings (Losses) Recorded Before Income Tax |
- |
- |
(12) |
43 |
- |
(314) |
(9) |
(292) |
||||||||||
Other Income, Net |
10 |
12 |
9 |
55 |
3 |
1 |
50 |
140 |
||||||||||
Income (Loss) Before Interest & Tax (1) |
667 |
528 |
93 |
157 |
140 |
(345) |
(34) |
1,206 |
||||||||||
Net Interest (Expense) Income (2) |
(141) |
(66) |
3 |
(21) |
(47) |
(1) |
(157) |
(430) |
||||||||||
Income Tax (Expense) Benefit |
(173) |
(176) |
7 |
(26) |
(25) |
191 |
100 |
(102) |
||||||||||
Equity Earnings Recorded Net of Income Tax |
- |
- |
- |
49 |
- |
- |
- |
49 |
||||||||||
Losses Attributable to Noncontrolling Interests |
16 |
- |
- |
- |
- |
- |
- |
16 |
||||||||||
Earnings (Losses) |
$ 369 |
$ 286 |
$ 103 |
$ 159 |
$ 68 |
$ (155) |
$ (91) |
$ 739 |
||||||||||
Year Ended December 31, 2009 |
||||||||||||||||||
(Dollars in millions) |
SDG&E |
SoCalGas |
Generation |
Pipelines & Storage |
LNG |
Commodities |
Consolidating Adjustments, Parent & Other |
Total |
||||||||||
Revenues |
$ 2,916 |
$ 3,355 |
$ 1,179 |
$ 465 |
$ 278 |
$ - |
$ (87) |
$ 8,106 |
||||||||||
Cost of Sales and Other Expenses |
(2,003) |
(2,583) |
(844) |
(470) |
(3) |
(218) |
(13) |
(22) |
(6,153) |
|||||||||
Litigation Adjustment (Expense) |
5 |
(3) |
(1) |
(3) |
(2) |
- |
- |
(4) |
||||||||||
Depreciation & Amortization |
(329) |
(293) |
(58) |
(45) |
(35) |
- |
(15) |
(775) |
||||||||||
Equity Earnings (Losses) Recorded Before Income Tax |
- |
- |
(2) |
50 |
- |
463 |
(12) |
499 |
||||||||||
Other Income (Expense), Net |
64 |
7 |
3 |
2 |
2 |
(2) |
73 |
149 |
||||||||||
Income (Loss) Before Interest & Tax (1) |
653 |
483 |
277 |
(1) |
25 |
448 |
(63) |
1,822 |
||||||||||
Net Interest Expense (2) |
(108) |
(66) |
- |
(17) |
(24) |
(7) |
(134) |
(356) |
||||||||||
Income Tax (Expense) Benefit |
(177) |
(144) |
(108) |
20 |
15 |
(103) |
75 |
(422) |
||||||||||
Equity Earnings Recorded Net of Income Tax |
- |
- |
- |
68 |
- |
- |
- |
68 |
||||||||||
(Earnings) Losses Attributable to Noncontrolling Interests |
(24) |
- |
- |
31 |
- |
- |
- |
7 |
||||||||||
Earnings (Losses) |
$ 344 |
$ 273 |
$ 169 |
$ 101 |
$ 16 |
$ 338 |
$ (122) |
$ 1,119 |
||||||||||
(1) Management believes "Income (Loss) before Interest & Tax" is a useful measurement of our business units' performance because it can be used to evaluate the effectiveness of our operations exclusive of interest and income tax, neither of which is directly relevant to the efficiency of those operations. |
|
(2) Net Interest (Expense) Income includes Interest Income, Interest Expense and Preferred Dividends of Subsidiaries. |
|
(3) Includes $132 million write-off of long-lived assets. |
|
Reconciliation of Sempra Energy Earnings To |
|
Sempra Energy Earnings Excluding Sempra Commodities |
|
Table G (Unaudited) |
|
Sempra Energy Earnings excluding Sempra Commodities and Earnings Per Share excluding Sempra Commodities are non-GAAP financial measures (GAAP represents accounting principles generally accepted in the United States). In 2009 and 2010, our Sempra Commodities segment has been comprised solely of earnings and activity related to Sempra Energy’s equity method investment in RBS Sempra Commodities, a commodities trading joint venture with The Royal Bank of Scotland (RBS). In four separate transactions in 2010 and early 2011, Sempra Energy and RBS divested substantially all of the businesses and assets within the joint venture. Because of the impacts of these divestitures on 2010 and future periods, management believes that these non-GAAP financial measures provide a more meaningful comparison of 2010 to 2009 results of operations for Sempra Energy's ongoing business units, as well as for future comparisons in subsequent periods. Non-GAAP financial measures are supplementary information that should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. The table below reconciles these non-GAAP financial measures to Sempra Energy Earnings and Diluted Earnings Per Common Share, which we consider to be the most directly comparable financial measures calculated in accordance with GAAP. |
|
Three months ended |
Years ended |
|||||||
December 31, |
December 31, |
|||||||
(Dollars in millions, except per share amounts) |
2010 |
2009 |
2010 |
2009 |
||||
Sempra Energy Earnings (GAAP) |
$ 280 |
$ 288 |
$ 739 |
$ 1,119 |
||||
Less Sempra Commodities amounts included in: |
||||||||
Litigation expense (adjustment) |
11 |
- |
(9) |
- |
||||
Other operation and maintenance |
(8) |
(7) |
(23) |
(13) |
||||
Equity earnings (losses) in RBS Sempra Commodities LLP |
(24) |
79 |
(314) |
463 |
||||
Other income (expense), net |
1 |
(1) |
1 |
(2) |
||||
Interest income |
(2) |
- |
4 |
- |
||||
Interest expense |
(2) |
- |
(5) |
(7) |
||||
Income tax benefit (expense) |
17 |
(2) |
191 |
(103) |
||||
Sempra Commodities earnings (losses) |
(7) |
69 |
(155) |
338 |
||||
Sempra Energy Earnings Excluding Sempra Commodities |
$ 287 |
$ 219 |
$ 894 |
$ 781 |
||||
Diluted earnings per common share: |
||||||||
Sempra Energy Earnings (GAAP) |
$ 1.15 |
$ 1.16 |
$ 2.98 |
$ 4.52 |
||||
Sempra Energy Earnings Excluding Sempra Commodities |
$ 1.18 |
$ 0.88 |
$ 3.61 |
$ 3.16 |
||||
Weighted-average number of shares outstanding, diluted (thousands) |
242,519 |
248,749 |
247,942 |
247,384 |
||||
SOURCE Sempra Energy
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