Sempra Energy tops estimates on Q4 results

Sempra Energy (SRE) topped market expectations on revenue and earnings for the fourth quarter of 2018. Total revenues rose 10% year-over-year to $3.2 billion.

On a GAAP basis, the company reported net earnings of $864 million, or $3.03 per share, compared to a net loss of $501 million, or $1.99 per share, last year. Adjusted net income was $431 million or $1.56 per share.

For 2019, Sempra expects adjusted EPS of $5.70 to $6.30.

Last week, the company declared an increase of approx. 8% in its dividend to $3.87 per common share on an annualized basis.

Earlier this month, Sempra announced the sale of its remaining wind operating and development assets in order to complete the divestiture of its US renewables business. The company is expected to receive approx. $2.5 billion in cash proceeds from the sales of its solar, wind and natural gas assets.

Also see: Sempra Energy Q4 2018 Earnings Conference Call Transcript

Sempra also announced the sale of its equity interests in its South American businesses last month and will launch the formal sale process in March. During the quarter, the company entered into several LNG agreements and, in particular, expects to start generating earnings from the Cameron LNG project in mid-2019.

The stock rose 2% in premarket hours on Tuesday.

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