Sempra(US:SRE)2025-05-08 20:07Financial Performance - Net income for Q1 2025 was $974 million, a decrease from $984 million in Q1 2024, representing a 1% decline[20] - Comprehensive income for Q1 2025 was $941 million, compared to $1,035 million in Q1 2024, indicating a 9% decrease[20] - The company reported a net income of $917 million attributable to Sempra shareholders in Q1 2025, down from $812 million in Q1 2024, a decline of 13%[20] - The total comprehensive income for Sempra shareholders in Q1 2025 was $919 million, down from $881 million in Q1 2024, a decline of 4%[20] - Total operating revenues for San Diego Gas & Electric Company increased to $1,420 million in Q1 2025, up from $1,379 million in Q1 2024, representing a growth of 3%[31] - Net income attributable to common shares rose to $281 million in Q1 2025, compared to $223 million in Q1 2024, reflecting a year-over-year increase of 26%[31] - Operating income improved to $390 million in Q1 2025, up from $357 million in Q1 2024, marking an increase of 9%[31] - Total revenues for the three months ended March 31, 2025, were $3,802 million, a decrease of 20% compared to $3,640 million for the same period in 2024[105] - Utilities revenue for the three months ended March 31, 2025, was $3,483 million, down from $3,503 million in 2024, reflecting a decrease of 0.6%[105] Comprehensive Income and Loss - Other comprehensive loss for Q1 2025 totaled $34 million, while in Q1 2024, it was a gain of $161 million, reflecting a significant shift[20] - Total other comprehensive income for Q1 2024 was $46 million, contrasting with a loss of $29 million in Q1 2025, highlighting volatility in financial instruments[20] - The company’s comprehensive income attributable to noncontrolling interests was $2 million in Q1 2025, compared to $69 million in Q1 2024, a decrease of 97%[20] Assets and Liabilities - Total assets increased to $99,010 million as of March 31, 2025, up from $96,155 million at December 31, 2024, representing a growth of 2%[22] - Total current liabilities increased to $9,934 million as of March 31, 2025, from $9,676 million at December 31, 2024, indicating a rise of 2.7%[24] - Long-term debt and finance leases increased to $33,286 million as of March 31, 2025, from $31,558 million at December 31, 2024, reflecting a growth of 5.5%[24] - Total equity rose to $38,202 million as of March 31, 2025, compared to $37,788 million at December 31, 2024, an increase of 1.1%[25] Cash Flow and Operating Activities - Net cash provided by operating activities was $1,482 million for the three months ended March 31, 2025, down from $1,851 million in 2024, a decrease of 19.9%[26] - Cash and cash equivalents rose to $1,739 million as of March 31, 2025, compared to $1,565 million at December 31, 2024, marking an increase of 11.1%[22] - Cash and cash equivalents reached $607 million by March 31, 2025, compared to $293 million in the same period last year, showing a substantial increase of 107%[38] Expenditures and Investments - Expenditures for property, plant, and equipment were $2,336 million for the three months ended March 31, 2025, compared to $1,933 million in the same period of 2024, an increase of 20.9%[26] - Expenditures for property, plant, and equipment were $539 million in Q1 2025, compared to $624 million in Q1 2024, reflecting a decrease of 13.6%[38] - The company reported a decrease in accrued compensation and benefits to $398 million as of March 31, 2025, down from $558 million at December 31, 2024, a decline of 28.8%[24] Tax Expenses - The net income tax expense for Q1 2025 was $57 million, compared to a tax benefit of $172 million in Q1 2024, indicating a significant change in tax position[20] - Sempra's income tax expense for Q1 2025 was $57 million, significantly lower than $172 million in Q1 2024, resulting in an effective tax rate of 7% compared to 21%[97] - SDG&E's income tax expense decreased to $14 million in Q1 2025 from $40 million in Q1 2024, with an effective tax rate dropping from 15% to 5%[97] - SoCalGas reported an income tax expense of $38 million in Q1 2025, down from $43 million in Q1 2024, with an effective tax rate of 8% compared to 11%[97] Debt and Financing - Sempra had an aggregate capacity of $9.9 billion under seven primary committed lines of credit, with available unused credit of $8.405 billion[142] - At March 31, 2025, Sempra's weighted-average interest rate on short-term debt was 5.02%, slightly down from 5.03% at December 31, 2024[149] - SDG&E issued $850 million in first mortgage bonds at a 5.40% interest rate, with proceeds intended for general corporate purposes, including repayment of commercial paper[150] - Port Arthur LNG has a seven-year term loan facility of approximately $6.8 billion, with $1.2 billion outstanding at March 31, 2025, at a weighted-average interest rate of 5.33%[152] Derivatives and Risk Management - The total fair value of Sempra's derivatives designated as hedging instruments included $6 million in current assets and $24 million in other long-term assets as of March 31, 2025[171] - Sempra reported a pretax loss of $72 million on undesignated derivatives for the three months ended March 31, 2025, compared to a gain of $50 million for the same period in 2024[177] - Credit risk related contingent features may reduce Sempra's credit limit if credit ratings fall below investment grade, potentially leading to immediate payment requests from counterparties[178] Shareholder Equity and EPS - Basic EPS for Q1 2025 was $1.39, an increase from $1.27 in Q1 2024, with diluted EPS also at $1.39 compared to $1.26 in the prior year[208] - The weighted-average common shares outstanding for basic EPS increased to 651,992 in Q1 2025 from 632,821 in Q1 2024[208] - The company granted 303,614 nonqualified stock options and 601,483 performance-based RSUs in Q1 2025[210]