Sempra rebrands, ups earnings estimate
US utility company Sempra Energy said June 29 it was raising its guidance on share performance while at the same time rebranding to align with the energy transition.
Sempra stated it was removing “energy” from its name to better reflect its strategy in North America, effective July 2.
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“Modernising the brand also supports the company's vision to deliver energy with purpose, ideal of service to others and long-standing commitment to environmental stewardship,” the company explained.
It will nonetheless keep trading under the SRE ticker symbol on the New York Stock Exchange.
The company in its full-year guidance announced plans to embark on a $32bn, five-year capital plan. On earnings, the company said during a virtual investor day presentation that it was updating its forecast for adjusted earnings per share (EPS) to $7.75 to $8.35.
"In the last several years, we have realigned our portfolio with the objective of simplifying the business while improving our financial results – and it is paying dividends," Trevor Mihalik, executive vice president and chief financial officer for Sempra, said. "Today, the strength of Sempra's balance sheet and a leading earnings growth profile bolster our mission to be North America's premier energy infrastructure company."
Sempra recorded Q1 earnings of $874mn, besting its report of $760mn during the same period last year. The company reported total revenues for the three-month period ending March 31 of $3.3bn, compared with $3bn in Q1 2020. Most of that came from its utilities segment, and the boost came in spite of a year-on-year increase in the price it pays for natural gas.
Sempra has been exploring alternative forms of energy as well. Subsidiary San Diego Gas & Electric said April 19 it would explore about a half dozen different end-use scenarios for hydrogen as part of its effort to reach net-zero greenhouse gas emissions by 2045.
Through the use of renewable natural gas, hydrogen as a power source and other clean-energy initiatives, the company estimated that it already avoids more than 3.2mn mt/yr of CO2-equivalent emissions.
Elsewhere, the company it targeting the acquisition of IEnova, its Mexican counterpart. The US company’s LNG subsidiary is already working with IEnova on an LNG export facility, Energia Costa Azul, in northwestern Mexico.
If built, it would also be the first LNG export terminal that would connect to natural gas reserves in western US states such as Texas and New Mexico, which host parts of the Permian shale basin.
Sempra services an estimated 36mn consumers.