San Diego-based energy company and LNG operator Sempra Energy on Wednesday revealed its adjusted earnings for the second quarter of this year dropped 22.8 percent on year to $200 million.
The adjusted earnings were lower due primarily to $19 million of after-tax losses in the second quarter 2016, compared with gains of $5 million after-tax in second quarter 2015, both resulting from natural gas price movements on inventories sold forward at Sempra U.S. Gas & Power, the company said on Thursday.
The majority of these losses related to natural gas prices are expected to reverse by year-end, according to Sempra.
Sempra’s GAAP earnings were at $16 million, compared with $295 million in the second quarter 2015.
“With the addition of the Mexican marine pipeline and the acquisition of a new wind farm in Michigan, we continue to add new projects both domestically and internationally that support our long-term growth strategy. We expect to meet our adjusted earnings-per-share guidance for 2016 of $4.60 to $5 and to achieve approximately 12-percent compound annual adjusted earnings-per-share growth from 2016 through 2020,” said Debra L. Reed, chairman and CEO of Sempra Energy.