November 2, 2019
Both San Diego-based Sempra Energy and its majority-stakeholder Texas power giant Oncor Electric Delivery Co. LLC reported increased earnings in the third quarter.
Oncor’s results included net income of $263 million compared to third quarter 2018 net income of $194 million.
The improved results were primarily driven by higher revenues that reflect the impacts of the assets acquired in the May 2019 InfraREIT transaction, warmer weather and customer growth as compared to the third quarter of 2018.
Oncor acquired InfraREIT in May, 2019, for $1.275 billion, merging the two companies, eliminating InfraREIT, the holdings from which became subsidiaries of Oncor.
And for the aggregate first three quarters of 2019, Oncor’s net income of $518 million compared favorably to net income of $426 million for the nine months ended September 30, 2018.
As for the future, Oncor said much of its expected growth comes from the Dallas-Ft. Worth Metroplex and the I-35 corridor.
“Additionally, a significant portion of Oncor’s capital expenditures are expected to be invested in transmission infrastructure to support the West Texas oil and gas industry as well as renewable energy growth in ERCOT,” the company said Friday.
Plus Oncor is supporting the integration of the City of Lubbock into the ERCOT market “with an estimated $400 million joint project with Lubbock Power & Light, with costs and transmission assets to ultimately be split by Oncor and LP&L,” according to a company statement.
Sempra Energy, which last year acquired Energy Future Holdings and with it an 80% majority interest in Oncor, reported third-quarter 2019 earnings of $813 million, or $2.84 per diluted share, up from $274 million, or $0.99 per diluted share, in the third quarter 2018.
On an adjusted basis, the company’s third-quarter 2019 earnings were $425 million, or $1.50 per diluted share, compared to $339 million, or $1.23 per diluted share, in the third quarter 2018.
And for the first three quarters of 2019, Sempra’s earnings were $1.61 billion, or $5.74 per diluted share, compared with earnings of $60 million, or $0.23 per diluted share, in the first nine months of 2018.
Adjusted earnings for the first nine months of 2019 were $1.46 billion, or $5.23 per diluted share, compared with $1.07 billion, or $4.00 per diluted share, in the first nine months of 2018.
The company’s chairman and CEO Jeffrey W. Martin said, “we laid out a plan last year to increasingly focus on core markets where we can produce the best results for our stakeholders.”
“With our recently announced agreements to sell our South American businesses, it reflects our ongoing commitment to simplify our strategy.
“Our year-to-date financial results are a product of that more focused strategy, and the hard work and dedication of all of our employees.”