While San Diego, CA-based Sempra Energy had little or nothing to say Tuesday to reports of severe financial losses being felt at its joint venture commodity training partner, the Royal Bank of Scotland (RBS), the red ink seems to keep growing and the United Kingdom (UK) government is planning to take even bigger stakes in its banking industry.
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Sempra Storage Project Stalled, Trading Off
Amid generally upbeat financial results reported for the third quarter San Diego-based Sempra Energy divulged that its Liberty Gas Storage Project in Louisiana may have to be shelved if it can’t find an engineering solution to cavern development problems. Separately, cost increases and delays are plaguing two other major gas and power projects.
Sempra Deflects Credit Crunch; Earnings Good, Trading Down
Even after experiencing a rare loss in its joint venture energy trading business, San Diego-based Sempra Energy senior executives talked bullishly about the prospects for the fourth quarter and next year during a conference call with financial analysts Monday in which the utility holding company reported essentially flat third quarter results ($308 million, or $1.24/diluted share, compared with net income of $305 million, or $1.15/diluted share, in the same period in 2007).
Industry Briefs
San Diego-based Sempra Energy closed its purchase of Mobile, AL-based EnergySouth Inc. for $510 million in cash. EnergySouth is absorbed into Sempra Pipelines & Storage, greatly increasing the company’s profile in the Gulf of Mexico region. A “substantial majority” of EnergySouth shareholders approved the sale Sept. 30; they will receive $61.50/share. The transaction has received all necessary regulatory approvals, including the federal antitrust clearance under the Hart-Scott-Rodino Act. Announced in late July, Sempra’s acquisition gives it a majority ownership in two large, high-cycle underground gas storage facilities that when fully developed will have a combined capacity of 57 Bcf. When the deal was announced Standard & Poor’s Ratings Services (S&P) revised to “negative” the ratings outlook on Sempra Energy, citing the deal’s provision that Sempra assume $283 million of EnergySouth debt. S&P affirmed the company’s “BBB+” corporate credit rating and its “A” rating on Sempra’s California utility subsidiaries. Included in the purchase is Mobile Gas Service Corp., an Alabama gas distribution utility owned by EnergySouth. Mobile Gas serves about 93,000 retail customers in southwest Alabama. Sempra said than James Fine has been named president of Mobile Gas after previously serving as the company’s vice president for operations.
Sempra Closes $510M EnergySouth Purchase
San Diego-based Sempra Energy closed its purchase of Mobile, AL-based EnergySouth Inc. for $510 million in cash. EnergySouth is absorbed into Sempra Pipelines & Storage.
Mexico’s President Dedicates Sempra North Baja LNG Terminal
Fully contracted but still not processing liquefied natural gas (LNG) shipments on a commercial basis, San Diego-based Sempra Energy’s Costa Azul LNG receiving terminal along the Pacific Coast of North Baja California, Mexico, was dedicated by Mexico’s President Felipe Calderon Thursday in ceremonies at the site hosted by Sempra CEO Donald Felsinger.
Uncertainties Lessen, Future Clearer, Sempra CEO Says
With some key uncertainties now resolved in its utilities and commodities businesses, San Diego-based Sempra Energy is raising its confidence level and profit guidance for the rest of the year, CEO Donald Felsinger told financial analysts during an earnings conference call last Thursday. Still, regulatory, economic and contractual challenges lie ahead for interstate pipeline/storage plays and Sempra’s growing liquefied natural gas (LNG) terminal assets.
Uncertainties Cleared Up, Future Brighter, Sempra CEO Says
With some key uncertainties now resolved in its utilities and commodities businesses, San Diego-based Sempra Energy is raising its confidence level and profit guidance for the rest of the year, CEO Donald Felsinger told financial analysts during an earnings conference call Thursday.
Sempra Offers $510M for EnergySouth to Expand Gulf Storage
San Diego-based Sempra Energy last week announced an agreement last Monday to acquire Mobile, AL-based EnergySouth for $510 million in cash, greatly expanding the western energy holding company’s storage infrastructure in the Gulf of Mexico. Under the terms of the deal EnergySouth shareholders are to receive $61.50/share.
Sempra Utilities Rate Settlements Approved
State regulators last Thursday adopted new general rate settlements for both Sempra Energy California utilities — San Diego Gas and Electric Co. (SDG&E) and Southern California Gas Co. (SoCalGas) — authorizing separate annual revenue requirements that combined amount to slightly more than $3 billion annually.