Sempra(US:SRE)2024-08-06 19:48Financial Performance - The company reported a significant increase in revenue, reaching $5.2 billion, representing a 15% year-over-year growth[1]. - Net income for Q2 2024 was $595 million, a decrease from $790 million in Q2 2023, representing a decline of approximately 24.7%[22]. - Comprehensive income for Q2 2024 was $591 million, down from $871 million in Q2 2023, reflecting a decrease of about 32.1%[22]. - Net income for the six months ended June 30, 2024, was $1,752 million, a decrease of 8.2% compared to $1,908 million in the same period of 2023[29]. - Net income for the six months ended June 30, 2024, was $409 million, a decrease from $442 million in the same period of 2023[50]. - Net income for Q2 2024 was $131 million, a 1.5% increase from $156 million in Q2 2023[60]. - Net income for the six months ended June 30, 2024, was $471 million, up 59.2% from $296 million in the same period of 2023[163]. Revenue and Growth - User data showed a 20% increase in active users, totaling 10 million users by the end of the quarter[1]. - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next fiscal year[1]. - Total operating revenues for San Diego Gas & Electric Company increased to $1,355 million in Q2 2024, up from $1,262 million in Q2 2023, representing a growth of 7.4%[41]. - Operating revenues for the three months ended June 30, 2024, were $1,492 million, a 11.1% increase from $1,343 million in the same period of 2023[163]. - For the six months ended June 30, 2024, total revenues reached $6,651 million, down 43% from the previous year[137]. Market Expansion and Strategy - The company is expanding its market presence in Latin America, targeting a 25% market share by 2025[1]. - A strategic acquisition of a local competitor was completed for $300 million, enhancing the company's operational capabilities[1]. - New product launches included a state-of-the-art energy storage solution, expected to generate $500 million in revenue within the first year[1]. - The company aims to reduce operational costs by 5% through efficiency improvements in the next fiscal year[1]. - The company is committed to achieving carbon neutrality by 2030, aligning with global sustainability goals[1]. Assets and Liabilities - Total current assets decreased to $4,378 million in June 2024 from $5,470 million in December 2023, a reduction of approximately 19.9%[24]. - Total assets increased to $90,473 million in June 2024 from $87,181 million in December 2023, an increase of about 2.6%[24]. - Long-term debt and finance leases rose to $28,966 million in June 2024 from $27,759 million in December 2023, an increase of approximately 4.4%[26]. - Total liabilities decreased to $55,054 million in June 2024 from $55,727 million in December 2023, a reduction of about 1.2%[26]. - Total current liabilities decreased to $1,856 million as of June 30, 2024, from $2,597 million as of December 31, 2023, reflecting a reduction of approximately 28.5%[47]. Cash Flow and Investments - Net cash provided by operating activities decreased to $2,520 million from $3,737 million, reflecting a decline of 32.6% year-over-year[29]. - Net cash used in investing activities was $4,168 million, slightly lower than $4,421 million in the previous year, a decrease of 5.7%[29]. - Expenditures for property, plant, and equipment were $3,830 million, down from $4,282 million, indicating a reduction of 10.5%[29]. - The investment in Oncor Holdings increased to $14,809 million in June 2024 from $14,266 million in December 2023, an increase of approximately 3.8%[24]. Dividends and Shareholder Returns - Common dividends paid increased to $741 million from $734 million, reflecting a growth of 1%[30]. - The company declared dividends of $785 million on common stock in Q2 2024, compared to $749 million in Q2 2023, reflecting a growth of 4.8%[41]. - Preferred dividends of subsidiary remained constant at $1 million for both Q2 2024 and Q2 2023[22]. Regulatory and Compliance - The authorized return on rate base for SDG&E is 4.34% for 2024-2025, with a total weighted return of 7.67%[157]. - The authorized return on rate base for SoCalGas is 4.54% for 2024-2025, with a total weighted return of 7.67%[157]. - SDG&E's revenue requirement for 2024 is requested at $3.0 billion, with an expected annual increase of approximately 8% to 11%[151]. - SoCalGas's revenue requirement for 2024 is requested at $4.4 billion, with an expected annual increase of approximately 6% to 8%[151]. Derivatives and Financial Instruments - The notional amount of interest rate derivatives designated as cash flow hedges was $4.448 billion as of June 30, 2024, slightly down from $4.451 billion as of December 31, 2023[191]. - The company recorded net amounts of derivative instruments on the balance sheet totaling $40 million as of June 30, 2024, compared to $257 million as of December 31, 2023[198]. - Sempra's use of energy derivatives aims to stabilize and lower natural gas and electricity costs for customers, with SDG&E and SoCalGas actively managing price and basis risks[187]. Other Key Metrics - Research and development expenses increased by 18%, totaling $150 million, focusing on renewable energy technologies[1]. - Contributions from noncontrolling interests increased to $786 million from $543 million, a growth of 44.9%[29]. - The company has realigned its reportable segments into three platforms: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure, to enhance performance assessment[74].