Sempra Energy posts lower earnings; costs rise for the Aliso Canyon natural gas leak

Sempra Energy reported lower second-quarter earnings Thursday partly because of natural gas-related costs.

The San Diego-based company, parent of Southern California Gas and San Diego Gas & Electric, reported earnings of $16 million, or 6 cents a share, compared with $295 million, or $1.17 a share, in the second quarter of 2015. Revenue fell 8.9% to $2.16 billion.

Earnings adjusted for non-recurring costs came to 79 cents a share. The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was $1 a share.

Sempra executives Thursday upped the latest cost figures for the Aliso Canyon natural gas leak to $717 million. The company said it has about $1 billion in insurance coverage and has collected about $34 million so far.

More than 8,000 households in the Porter Ranch development left the area in the aftermath of the leak, which was discovered in October. It took nearly four months to plug the leak. Aliso Canyon is the largest natural gas storage site in the state and is considered critical to maintaining the power grid in Southern California.

Southern California Gas Chief Executive Dennis Arriola said that the company expects to begin injecting natural gas again into the Aliso Canyon gas storage field in September, provided the utility gets the thumbs-up from regulators.

Sempra said its lower second-quarter earnings resulted partly from a $13-million impairment of assets at Southern California Gas in the wake of the California Public Utilities Commission’s recent decision to reject the 65-mile North-South pipeline project. Sempra also pointed to $19 million in losses at its U.S. Gas & Power subsidiary related to movements in natural gas prices.

The company provided earnings per share guidance in the range of $4.60 to $5 for the full year. Sempra stock fell 6 cents to $110.29 a share.

rob.nikolewski@sduniontribune.com