SAN DIEGO — Sempra Energy Monday reported first-quarter 2018 earnings of $347 million, or $1.33 per diluted share, compared with first-quarter 2017 earnings of $441 million, or $1.75 per diluted share. Analysts were expecting $1.67 per share.

Sempra Energy’s first-quarter 2018 earnings included higher financing costs at the parent company. These financing costs were incurred starting in January, primarily related to the anticipated acquisition of a majority stake in Oncor Electric Delivery Company LLC, which was completed in early March.

First-quarter 2018 consolidated results also reflected $25 million income-tax expense to adjust 2017 provisional amounts related to the Tax Cuts and Jobs Act of 2017.

“During the quarter, we successfully implemented our leadership succession plan, completed the Oncor transaction and continued execution of our capital program in our utility and infrastructure businesses,” said Jeffrey W. Martin, CEO of Sempra Energy. “Our underlying business performance was solid and consistent with our expectations.”

Operating Highlights
On May 1, Martin became Sempra Energy’s CEO, while Joseph A. Householder became Sempra Energy’s president and chief operating officer and Trevor I. Mihalik became Sempra Energy’s executive vice president and chief financial officer.

Debra L. Reed announced in March that she would step down as president and CEO of Sempra Energy May 1 and continue as executive chairman of the company until her retirement on Dec. 1.

Previously, Martin was Sempra Energy’s executive vice president and chief financial officer, Householder was Sempra Energy’s corporate group president of infrastructure businesses and Mihalik was Sempra Energy’s senior vice president, controller and chief accounting officer.

On March 9, Sempra Energy completed its $9.45 billion acquisition of an approximate 80-percent indirect ownership interest in Oncor, after receiving final regulatory approvals for the transaction. Sempra Energy expects $320 million to $360 million for its portion of partial-year earnings from Oncor in 2018.

Last month, San Diego Gas & Electric and Southern California Gas Co. filed supplemental testimony in their 2019 General Rate Case applications regarding impacts of federal tax reform.

As a result of tax reform, SoCalGas is projecting reduced customer bills, while SDG&E expects incremental wildfire mitigation investments to substantially offset any bill reductions.

Sempra Energy’s Mexican subsidiary IEnova announced April 12 that the company has been awarded a $130 million project to build and operate a liquid fuels marine terminal near Ensenada, Mexico.

In connection with the project, IEnova has signed long-term supply contracts with multinational counterparties, including an affiliate of Chevron, for all of the terminal’s capacity. The terminal is expected to commence operations in the second half of 2020.

Internet Teleconference
Sempra Energy streamed a live discussion of its earnings results over the Internet Monday with senior management of the company. The teleconference is available for replay by dialing 881-203-1112 and entering passcode 1980202.

Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2017 revenues of more than $11 billion. Sempra Energy is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ approximately 20,000 employees serve more than 40 million consumers worldwide.