U.S. power and gas utility Sempra beat Wall Street estimates for second-quarter profit on August 3, helped by lower costs and higher sales at its California units.
The company's adjusted net income per share was $1.88 for the three months ended June 30, beating analysts' average expectations of $1.75, according to Refinitiv data.
Prices of natural gas fell to a 30-month low in April, allowing utility companies to significantly reduce costs of procuring it for customers. A drop in electric fuel and purchased power costs also lifted profit.
Sempra has identified LNG as a growth area and is progressing several new plants, including the Costa Azul LNG export plant in Mexico and another in Texas. First shipments from Mexico could come in 2025.
"Port Arthur Phase 1 is also advancing as expected and continues to target commercial operations of Train 1 and Train 2 in '27 and 28, respectively," Sempra LNG CEO Justin Bird said on an earnings call.
Its Cameron LNG Phase 2 and Port Arthur LNG phase 2 have yet to get a financial go-ahead, the company said.
Sempra Infrastructure Partners expects to finalize its ownership stake in Port Arthur LNG Phase 1 at 28%, with an equity requirement at approximately $1.74 billion, Bird said.
Sempra also affirmed its full-year adjusted profit between $8.60 and $9.20 and announced a two-for-one stock split in the form of a 100% stock dividend, with a distribution date of August 21.
The stock split decision was driven by the firm's high stock price compared to other utilities in the S&P 500 and would improve trading volumes, Sempra Chairman Jeffrey Martin said.
Shares of the company fell 2.4% on August 3 to close at $143.31.
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