Sempra Unveils Robust 2024 Financial Performance and Ambitious Growth Plans
Sempra Inc., a prominent North American energy infrastructure company, recently reported its full-year earnings for 2024, revealing a fiscal snapshot that underscores its resilience and forward-looking ambitions in the energy sector. The company announced GAAP earnings totaling $2.82 billion, which translates to $4.42 per diluted share. This reflects a decrease in comparison to the previous year's earnings of $3.03 billion or $4.79 per diluted share, prompting management to reset earnings expectations. Sempra's adjusted earnings were $2.97 billion for 2024, with an adjusted EPS of $4.65, demonstrating slight growth from $2.92 billion or $4.61 in 2023.
In setting the stage for future growth, Sempra has raised its five-year capital expenditure plan to a record $56 billion, with significant investments aimed at expanding and modernizing infrastructure, particularly in Texas. Jeffrey W. Martin, the CEO of Sempra, stated, "With the reset of our guidance in 2025, we are laying a strong foundation for a decade of growth. Over half of our planned capital expenditures will be directed towards Texas, aiming to enhance and modernize the energy grid."
For the fourth quarter of 2024, Sempra reported GAAP earnings of $665 million, or $1.04 per diluted share, down from $737 million, or $1.16 per diluted share, in 2023. The adjusted earnings for Q4 were more promising, totaling $960 million, translated into $1.50 per diluted share, a substantial increase compared to $719 million, or $1.13, for the same period last year. The financial results highlight the impact of regulatory disallowances and foreign currency fluctuations, factors that have influenced the overall earnings picture significantly.
Notably, Sempra has three primary growth platforms: Sempra California, Sempra Texas, and Sempra Infrastructure. Together, these platforms deliver energy to about 40 million consumers in significant economic markets. The company made substantial strides in operational excellence across all areas, further investing in innovative technologies and services to enhance customer safety and service quality.
The Texas utility market, led by Oncor Electric Delivery Company, is experiencing exponential growth, with a capital plan increase of 50% over the previous year, now totaling $36 billion. Oncor is actively working on multiple infrastructure projects, including placing significant numbers of transmission projects into service and upgrading existing lines to meet rising consumer demands.
Meanwhile, Sempra California serves roughly 25 million customers and has seen a record high demand for electricity in its service area, reinforcing the necessity for continued capital investment in energy infrastructure. Furthermore, the subsidiary has launched a state-of-the-art Wildfire and Climate Resiliency Center to reinforce community safety and manage climate-related risks proactively.
Sempra Infrastructure has also reached critical milestones, advancing multiple construction projects and further stepping into the LNG market with successful operations at various terminals. These projects reflect a robust response to the growing demand for cleaner and secure energy solutions globally.
Looking ahead, Sempra is aiming to achieve a revised earnings-per-share (EPS) guidance for 2025 between $4.30 and $4.70, while it expects its 2026 EPS to rise to between $4.80 and $5.30. Management is buoyed by a long-term EPS growth rate increase projection of 7% to 9%, suggesting confidence in infrastructure projects aligned with energy demands.
In terms of dividends, the Sempra board announced a quarterly dividend of $0.645 per share payable April 15, 2025, marking an increase from the previous year's $2.48 per share to the current $2.58 per share annually. These financial maneuvers signify Sempra's commitment to delivering shareholder value while investing in critical infrastructure.
In summary, Sempra's recent financial results and strategic plans illustrate a company poised for considerable growth within the energy sector. With major investments being funneled into sustainable energy solutions and infrastructure advancements, Sempra's trajectory towards distributing cleaner energy remains steadfast, driving both environmental and operational goals through this transformative decade.
In setting the stage for future growth, Sempra has raised its five-year capital expenditure plan to a record $56 billion, with significant investments aimed at expanding and modernizing infrastructure, particularly in Texas. Jeffrey W. Martin, the CEO of Sempra, stated, "With the reset of our guidance in 2025, we are laying a strong foundation for a decade of growth. Over half of our planned capital expenditures will be directed towards Texas, aiming to enhance and modernize the energy grid."
For the fourth quarter of 2024, Sempra reported GAAP earnings of $665 million, or $1.04 per diluted share, down from $737 million, or $1.16 per diluted share, in 2023. The adjusted earnings for Q4 were more promising, totaling $960 million, translated into $1.50 per diluted share, a substantial increase compared to $719 million, or $1.13, for the same period last year. The financial results highlight the impact of regulatory disallowances and foreign currency fluctuations, factors that have influenced the overall earnings picture significantly.
Notably, Sempra has three primary growth platforms: Sempra California, Sempra Texas, and Sempra Infrastructure. Together, these platforms deliver energy to about 40 million consumers in significant economic markets. The company made substantial strides in operational excellence across all areas, further investing in innovative technologies and services to enhance customer safety and service quality.
The Texas utility market, led by Oncor Electric Delivery Company, is experiencing exponential growth, with a capital plan increase of 50% over the previous year, now totaling $36 billion. Oncor is actively working on multiple infrastructure projects, including placing significant numbers of transmission projects into service and upgrading existing lines to meet rising consumer demands.
Meanwhile, Sempra California serves roughly 25 million customers and has seen a record high demand for electricity in its service area, reinforcing the necessity for continued capital investment in energy infrastructure. Furthermore, the subsidiary has launched a state-of-the-art Wildfire and Climate Resiliency Center to reinforce community safety and manage climate-related risks proactively.
Sempra Infrastructure has also reached critical milestones, advancing multiple construction projects and further stepping into the LNG market with successful operations at various terminals. These projects reflect a robust response to the growing demand for cleaner and secure energy solutions globally.
Looking ahead, Sempra is aiming to achieve a revised earnings-per-share (EPS) guidance for 2025 between $4.30 and $4.70, while it expects its 2026 EPS to rise to between $4.80 and $5.30. Management is buoyed by a long-term EPS growth rate increase projection of 7% to 9%, suggesting confidence in infrastructure projects aligned with energy demands.
In terms of dividends, the Sempra board announced a quarterly dividend of $0.645 per share payable April 15, 2025, marking an increase from the previous year's $2.48 per share to the current $2.58 per share annually. These financial maneuvers signify Sempra's commitment to delivering shareholder value while investing in critical infrastructure.
In summary, Sempra's recent financial results and strategic plans illustrate a company poised for considerable growth within the energy sector. With major investments being funneled into sustainable energy solutions and infrastructure advancements, Sempra's trajectory towards distributing cleaner energy remains steadfast, driving both environmental and operational goals through this transformative decade.
Topics Energy）
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