Sempra profit nearly triples on asset sales

San Diego-based Sempra Energy, owner of Southern California Gas Co. and San Diego Gas & Electric Co., said Thursday that third-quarter profit almost tripled on gains from power plant sales.

Net income climbed to a record $653 million, or $2.49 a share, from $221 million, or 86 cents, a year earlier, Sempra said. Sales were little changed at $2.69 billion.

Sempra’s earnings were buoyed by a $211-million gain from the sale of the company’s 50% stake in several Texas power plants. Sempra has sold electricity generators, energy consulting units and an oil-production division to help fund a $10-billion investment plan in gas pipelines and power systems.

Excluding the asset sales, Sempra’s earnings were $332 million, or $1.27 a share. The company was expected to earn 96 cents based on the average estimate of nine analysts surveyed by Thomson Financial.

Talks to expand the company’s liquefied natural gas plant in Baja California have slowed down because of delays in the construction of overseas facilities, Chief Executive Don Felsinger said. “Longer term, we are still very bullish,” he said during a conference call with analysts and investors.

The Mexico plant is more than 50% complete. The company’s second facility, in Louisiana, is about 30% done, Felsinger said. Both are set to begin operating in 2008.

The company raised its forecast for annual earnings excluding asset sales by about 10 cents a share, to a per-share range of $3.50 to $3.70.

Sempra’s shares rose 6 cents to $53.18.

Earnings at Sempra’s commodities trading division fell to $105 million from $161 million a year earlier on weaker results from oil trading.

Profit at Sempra’s power-plant unit rose to $265 million, from $24 million, reflecting the asset sales. The company’s utilities earned a combined $131 million, compared with $138 million.