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Sempra Energy shares tumble on huge 2Q miss

The natural gas and power company suffered a reversal when it swung to a loss from the profit it posted in the same period last year
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Sempra Energy struggles in a reorganization where it is dumping several assets

Sempra Energy's (NYSE:SRE) shares tumbled Monday after it reported a large miss in secon- quarter revenue and earnings swung to a loss from a profit.

The company reported a loss of US$561mln in the second quarter, from a profit of US$259mln in the same period a year ago.

This translated into a loss of US$2.11 per share, against a consensus estimate of a US$1.19 per share gain. Sempra Energy's losses for the first six months of 2018 were US$214 million, or US$0.82 per diluted share, compared with earnings of US$700 million, or US$2.77 per diluted share, in the first six months of 2017.

Shares of Sempra fell 3.26% to US$112.98 in premarket action after the results were announced.

READ: Sempra Energy boasts of “outstanding” performance but Trump tax changes dent earnings

The company's strategic review was completed on June 28. Sempra Energy intends to sell several energy infrastructure assets, including its entire portfolio of US wind and US solar assets and investments, as well as certain US midstream storage assets. Proceeds from the sales will be used to support growth opportunities in the company's other businesses and bolster Sempra Energy's balance sheet, a company statement said.

Last month, Sempra Energy successfully completed equity offerings that are expected to raise US$1.82 billion, assuming settlement of all forward sale agreements by issuance of common stock. The funds will be used to complete the financing for the acquisition earlier this year of an 80.25% stake in Oncor Electric Delivery Co with approximately 65% in equity.

Sempra Energy is based in San Diego, California. The company posted 2017 revenues of more than US$11 billion. The utility holding firm has the largest US customer base. 

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