Sempra Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Adjusted earnings for the first half of 2020 increased over 50% versus the first half of 2019, driven mainly by U.S. utilities and Cameron LNG contributions.
  • Q2 2020 GAAP earnings were $2.239 billion or $7.61 per share, compared with $354 million or $1.26 per share in Q2 2019.
  • Q2 2020 adjusted earnings were $485 million or $1.65 per share, up from $309 million or $1.10 per share in Q2 2019.
  • Drivers of year-over-year adjusted earnings improvement included:
    • $126 million higher earnings from California utilities due to a regulatory liability release.
    • $75 million from CPUC base operating margin increases tied to the 2019 GRC decision.
    • $65 million from Cameron LNG entering service.
    • $31 million from Sempra Texas Utilities driven by higher consumption, rate updates, and Oncor’s InfraRE acquisition.
  • Offsets included:
    • $49 million lower earnings from discontinued South American operations due to asset sales.
    • $32 million lower earnings in "Parent & Other" related to taxes and FX hedging tied to South American divestitures.

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Operator: Good day and welcome to the Sempra Energy Second Quarter Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Faisel Khan. Please go ahead. Faisel Khan: Good morning. And welcome to Sempra Energy’s second quarter 2020 earnings call. A live webcast of this teleconference and slide presentation is available on our website under the Investor section. Several members of our management team are on the line with us today, including Jeff Martin, Chairman and Chief Executive Officer; Trevor Mihalik, Executive Vice President and Chief Financial Officer; Justin Bird, Chief Executive Officer of Sempra LNG,; Allen Nye, Chief Executive Officer of Oncor; Kevin Sagara, Group President; and Peter Wall, Senior Vice President, Controller and Chief Accounting Officer. Before starting, I would like to remind everyone that we will be discussing forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those discussed today. The factors that could cause our actual results to differ materially are discussed in the company’s most recent 10-K and 10-Q filed with the SEC. All the earnings per share amounts in our presentation are shown on a diluted basis and we will be discussing certain non-GAAP financial measures. Please refer to the presentation slides that accompany this call for reconciliation to GAAP measures. I would also like to mention that

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