Metalnewsnet 5 May ： Despite a tough first quarter, we're reaffirming our fair value estimate for Sempra Energy SRE after reviewing the company's quarterly filings and listening to management's guidance for the full year. Excluding a charge taken for the settlement of litigation related to the California power crisis, Sempra's business units earned $202 million, or $0.81 per share, versus earnings of $316 million, or $1.29 per share, in the first quarter of 2009. Performance slipped across almost all of Sempra's business segments, as higher costs at the utilities put pressure on short-term performance and increased maintenance at Sempra Generation weighed on overall profitability for the quarter. The largest driver of the poor comparables, however, was a relatively weak quarter at the commodities joint venture compared with an exceptional first quarter of 2009 when RBS Sempra's competition was either licking its wounds on the sidelines or out of business altogether. In particular, the joint venture's oil and gas trading businesses performed poorly. Given the poor results at the commodities business, management has revised its expected earnings for 2010 down to $3.53-$3.78 per share, excluding the $0.38 per share settlement charge. The commodities venture is expected to break even for remainder of the year that it remains with Sempra. Negotiations to finalize the sale of the European business and to find a buyer for the North American business are ongoing. (from morningstar) |
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