Sempra, a San Diego-based electric and gas company, saw a rise in profit during the third quarter despite a decline in revenue. The decrease in natural gas and other costs from the previous year contributed to this positive outcome.
Sempra reported a net income of $721 million, a substantial increase from the $485 million recorded in the same period last year. Earnings per share also experienced significant growth, reaching $1.14 compared to 77 cents previously. Furthermore, adjusted earnings per share rose to $1.08 from 98 cents.
Revenue and Expectations
While profit exceeded expectations, sales figures fell short of market projections. According to FactSet forecasts, revenue was anticipated to reach $3.68 billion, while net income was expected to be $637 million. However, Sempra’s total revenue dropped to $3.33 billion from $3.62 billion.
Decrease in Costs
A key factor contributing to the increase in profit was the decline in costs. The company’s expenditure on natural gas decreased from $505 million to $260 million in the third quarter. Similarly, the cost of electric fuel and purchased power reduced from $307 million to $183 million.