EX-99 2 exhibit991.htm EXHIBIT 99.1 Exhibit 99.1

 

 

 

NEWS RELEASE

 

 

Media Contact:

Doug Kline

 

Sempra Energy

 

(877) 340-8875

 

www.sempra.com

 

Financial Contact:

Glen Donovan

 

Sempra Energy

 

(877) 736-7727

 

investor@sempra.com

 

 

SEMPRA ENERGY REPORTS HIGHER

 

SECOND-QUARTER 2010 EARNINGS

 

 

Company to Begin Share Repurchase

 

in Third Quarter

 

 

 

SAN DIEGO, Aug. 3, 2010 – Sempra Energy (NYSE: SRE) today reported second-quarter 2010 earnings of $222 million, or $0.89 per diluted share, up from earnings of $198 million, or $0.80 per diluted share, in 2009.

            Second-quarter 2009 earnings included a charge of $64 million, or $0.26 per diluted share, for an asset write-off at Sempra Pipelines & Storage.

            Sempra Energy’s earnings for the first six months of 2010 were $328 million, or $1.31 per diluted share, compared with $514 million, or $2.09 per diluted share, in 2009.  First-quarter 2010 earnings included a charge of $96 million after tax, or $0.38 per diluted share, for a proposed energy-crisis litigation settlement.

 “Our core businesses performed well in the quarter,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy.  “Last month, we completed our transaction with J.P. Morgan to sell a major portion of our commodities joint venture – the first step in our exit from that business.  Our proceeds from the sale and other distributions will be approximately $1 billion.  Additionally, last month, San Diego Gas & Electric reached a significant milestone with receipt of the final major regulatory approval for its Sunrise Powerlink transmission line.  This project will increase electric grid reliability and create a new pathway for clean, renewable energy.”

Sempra Energy today also announced that the company will begin a $500 million accelerated share-repurchase program later this quarter.

 

SUBSIDIARY OPERATING RESULTS

San DiegoGas & Electric

            In the second quarter 2010, earnings for San Diego Gas & Electric (SDG&E) were $75 million, up from $70 million in last year’s second quarter.

            For the first six months of 2010, SDG&E earned $158 million, compared with $169 million during the same period last year.

            On July 13, SDG&E received approval from the U.S. Forest Service and now is moving forward with construction of the $1.9 billion Sunrise Powerlink transmission line project.  The U.S. Forest Service permit was the last major regulatory approval required for the project.  SDG&E previously received approvals from the California Public Utilities Commission and the federal Bureau of Land Management. 

 

Southern California Gas Co.

            Southern California Gas Co. (SoCalGas) had second-quarter earnings of $69 million in 2010, compared with $65 million in the prior-year’s second quarter.

            SoCalGas’ earnings in the first half of the year increased to $134 million in 2010 from $124 million in 2009.

 

Sempra Generation

            Sempra Generation’s second-quarter earnings rose to $48 million in 2010 from $33 million last year, due primarily to additional renewable energy tax credits from new projects.  The gains from the tax credits in the most recent quarter were offset partially by lower earnings due to scheduled maintenance at two power plants and earthquake damage at the company’s Mexican plant.

            In the first half of 2010, Sempra Generation recorded a loss of $5 million, compared with earnings of $76 million during the same period last year.  In the first quarter 2010, Sempra Generation took a charge of $84 million related to a proposed energy-crisis litigation settlement.

            Sempra Generation has activated the first 18 megawatts (MW) at its 48-MW Copper Mountain Solar facility under construction near Las Vegas.  The facility is expected to be completed by year-end. Copper Mountain Solar and Sempra Generation’s adjacent El Dorado Solar facility together will employ about 1 million thin-film photovoltaic panels to produce a total of 58 MW of solar energy.  The power is being sold to Pacific Gas & Electric under 20-year agreements.

 

Sempra Pipelines & Storage

            In the second quarter 2010, Sempra Pipelines & Storage earned $39 million, compared with a loss of $27 million in the prior year’s quarter.  In the second quarter 2009, Sempra Pipelines & Storage recorded a charge of $64 million for the write-off of certain assets at Liberty Gas Storage.

            For the first six months of 2010, Sempra Pipelines & Storage’s earnings increased to $77 million from $10 million in the same period last year.

 

Sempra LNG

            Sempra LNG’s earnings in the second quarter 2010 were $13 million, compared with a loss of $12 million in the second quarter 2009, due to higher earnings from operations.   In the third quarter last year, Sempra LNG’s Louisiana receipt terminal began operations and a major supply contract commenced for the company’s Mexican receipt terminal.

            In the first half of 2010, Sempra LNG earned $45 million, compared with a loss of $19 million in the first half of 2009.

 

Sempra Commodities

            Sempra Energy’s commodity operations broke even in the second quarter 2010, compared with earnings of $85 million in last year’s second quarter, due primarily to lower results in crude oil, oil products and natural gas, as well as higher costs for employee retention.  

For the first six months of 2010, Sempra Energy recorded a loss of $5 million in its commodity operations, compared with earnings of $199 million in the same period last year.  

On July 1, Sempra Energy and the Royal Bank of Scotland completed the sale to J.P. Morgan of the RBS Sempra Commodities joint venture’s metals, oil, and European power and gas businesses for $1.6 billion.  Sempra Energy’s share of the proceeds from the sale was approximately $1 billion, including distributions of 2009 earnings.

In February, Sempra Energy announced its intention to exit the joint venture.  An active sales process is under way for the remaining North American operations of RBS Sempra Commodities. As stated previously, Sempra Commodities’ performance is not expected to improve significantly prior to completion of the sales process, because of low commodity prices and the disruptions caused by the sale.

 

INTERNET BROADCAST

Sempra Energy will broadcast a live discussion of its earnings results over the Internet today at 1 p.m. EDT with senior management of the company.  Access is available by logging onto the website at www.sempra.com.  For those unable to log onto the live webcast, the teleconference will be available on replay a few hours after its conclusion by dialing (888) 203-1112 and entering passcode 7403945.

            Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2009 revenues of more than $8 billion.  The Sempra Energy companies’ 13,800 employees serve about 29 million consumers worldwide.


Complete financial tables, including earnings information by business unit, are available on Sempra Energy’s Web site at http://www.sempra.com/downloads/2Q2010.pdf.

 

This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements can be identified by words like “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “may,” “would,” ”could,” “should,” or similar expressions, or discussions of strategies, plans or intentions.  Forward-looking statements are not guarantees of performance.  They involve risks, uncertainties and assumptions.  Future results may differ materially from those expressed in the forward-looking statements.  Forward-looking statements are necessarily based upon various assumptions involving judgments with respect to the future and other risks, including, among others: local, regional, national and international economic, competitive, political, legislative and regulatory conditions and developments; actions by the California Public Utilities Commission, California State Legislature, California Department of Water Resources, Federal Energy Regulatory Commission, Federal Reserve Board,  and other regulatory and governmental bodies in the United States and other countries where the company does business; capital market conditions and inflation, interest and exchange rates; energy and trading markets, including the timing and extent of changes and volatility in commodity prices; the availability of electric power, natural gas and liquefied natural gas; weather conditions and conservation efforts; war and terrorist attacks; business, regulatory, environmental and legal decisions and requirements; the status of deregulation of retail natural gas and electricity delivery; the timing and success of business development efforts; the resolution of litigation; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of the company.  These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission.  These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com.

 

Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not the same companies as the utility, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra Pipelines & Storage, Sempra Generation, Sempra LNG and RBS Sempra Commodities dba Sempra Energy Solutions and Sempra Energy Trading are not regulated by the California Public Utilities Commission.

 

 

###

 

 



SEMPRA ENERGY

Table A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

(Dollars in millions, except per share amounts)

2010 

 

2009 

 

2010 

 

2009 

 

(unaudited)

REVENUES

 

 

 

 

 

 

 

Sempra Utilities

$ 1,512

 

$ 1,316

 

$ 3,424

 

$ 2,958

Sempra Global and parent

496

 

373

 

1,118

 

839

    Total revenues

2,008

 

1,689

 

4,542

 

3,797

EXPENSES AND OTHER INCOME

 

 

 

 

 

 

 

Sempra Utilities:

 

 

 

 

 

 

 

    Cost of natural gas

(359)

 

(249)

 

(1,117)

 

(789)

    Cost of electric fuel and purchased power

(129)

 

(129)

 

(277)

 

(300)

Sempra Global and parent:

 

 

 

 

 

 

 

    Cost of natural gas, electric fuel and purchased power

(257)

 

(187)

 

(595)

 

(455)

    Other cost of sales

(20)

 

(16)

 

(45)

 

(33)

Litigation expense

1

 

(4)

 

(167)

 

3

Other operation and maintenance

(616)

 

(582)

 

(1,192)

 

(1,105)

Depreciation and amortization

(215)

 

(189)

 

(425)

 

(372)

Franchise fees and other taxes

(77)

 

(69)

 

(167)

 

(151)

Write-off of long-lived assets

-

 

(132)

 

-

 

(132)

Equity earnings (losses):

 

 

 

 

 

 

 

    RBS Sempra Commodities LLP

(16)

 

126

 

(9)

 

279

    Other

8

 

2

 

16

 

9

Other income, net

8

 

70

 

16

 

73

Interest income

4

 

5

 

8

 

11

Interest expense

(103)

 

(79)

 

(212)

 

(161)

Income before income taxes and equity earnings of certain unconsolidated subsidiaries

237

 

256

 

376

 

674

Income tax expense

(59)

 

(90)

 

(117)

 

(199)

Equity earnings, net of income tax

27

 

23

 

46

 

39

Net income

205

 

189

 

305

 

514

Losses attributable to noncontrolling interests

20

 

12

 

28

 

5

Preferred dividends of subsidiaries

(3)

 

(3)

 

(5)

 

(5)

Earnings

$ 222

 

$ 198

 

$ 328

 

$ 514

 

 

 

 

 

 

 

 

Basic earnings per common share

$ 0.90

 

$ 0.82

 

$ 1.33

 

$ 2.12

Weighted-average number of shares outstanding, basic (thousands)

246,784

 

242,718

 

246,435

 

242,245

 

 

 

 

 

 

 

 

Diluted earnings per common share

$ 0.89

 

$ 0.80

 

$ 1.31

 

$ 2.09

Weighted-average number of shares outstanding, diluted (thousands)

249,727

 

247,090

 

249,835

 

246,039

Dividends declared per share of common stock

$ 0.39

 

$ 0.39

 

$ 0.78

 

$ 0.78






SEMPRA ENERGY

Table B

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

(Dollars in millions)

2010 

 

2009 

 

 

 

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

$ 188

 

$ 110

 

Restricted cash

3

 

35

 

Accounts receivable

818

 

1,130

 

Due from unconsolidated affiliates

32

 

41

 

Income taxes receivable

196

 

221

 

Deferred income taxes

-

 

10

 

Inventories

151

 

197

 

Regulatory assets

82

 

54

 

Fixed-price contracts and other derivatives

77

 

77

 

Insurance receivable related to wildfire litigation

150

 

273

 

Other

176

 

147

 

 

 

Total current assets

1,873

 

2,295

 

 

 

 

 

 

 

Investments and other assets:

 

 

 

 

Restricted cash

27

 

-

 

Regulatory assets arising from fixed-price contracts and other derivatives

243

 

241

 

Regulatory assets arising from pension and other postretirement benefit obligations

967

 

959

 

Other regulatory assets

836

 

603

 

Nuclear decommissioning trusts

675

 

678

 

Investment in RBS Sempra Commodities LLP

1,956

 

2,172

 

Other investments

2,451

 

2,151

 

Goodwill and other intangible assets

538

 

524

 

Sundry

596

 

608

 

 

 

Total investments and other assets

8,289

 

7,936

Property, plant and equipment, net

18,924

 

18,281

Total assets

$ 29,086

 

$ 28,512

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

 

Short-term debt

$ 923

 

$ 618

 

Accounts payable

649

 

693

 

Due to unconsolidated affiliates

12

 

29

 

Deferred income taxes

2

 

-

 

Dividends and interest payable

181

 

190

 

Accrued compensation and benefits

220

 

264

 

Regulatory balancing accounts, net

525

 

382

 

Current portion of long-term debt

307

 

573

 

Fixed-price contracts and other derivatives

99

 

95

 

Customer deposits

138

 

145

 

Reserve for wildfire litigation

241

 

270

 

Other

754

 

629

 

 

 

Total current liabilities

4,051

 

3,888

Long-term debt

7,562

 

7,460

 

 

 

 

 

 

 

Deferred credits and other liabilities:

 

 

 

 

Due to unconsolidated affiliate

-

 

2

 

Customer advances for construction

147

 

146

 

Pension and other postretirement benefit obligations, net of plan assets

1,242

 

1,252

 

Deferred income taxes

1,466

 

1,318

 

Deferred investment tax credits

53

 

54

 

Regulatory liabilities arising from removal obligations

2,588

 

2,557

 

Asset retirement obligations

1,319

 

1,277

 

Other regulatory liabilities

156

 

181

 

Fixed-price contracts and other derivatives

326

 

312

 

Deferred credits and other

687

 

735

 

 

 

Total deferred credits and other liabilities

7,984

 

7,834

Contingently redeemable preferred stock of subsidiary

79

 

79

Equity:

 

 

 

 

Total Sempra Energy shareholders' equity

9,190

 

9,007

 

Preferred stock of subsidiaries

100

 

100

 

Other noncontrolling interests

120

 

144

 

 

 

Total equity

9,410

 

9,251

Total liabilities and equity

$ 29,086

 

$ 28,512




SEMPRA ENERGY

Table C

 

 

 

 

 

 

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

 

 

 

 

 

 

 

 

 

Six months ended

June 30,

(Dollars in millions)

 

2010 

 

2009 

 

 

 

(unaudited)

Cash Flows from Operating Activities:

 

 

 

 

Net income

 

$ 305

 

$ 514

Adjustments to reconcile net income to net cash  

 

 

 

 

  provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

425

 

372

 

Deferred income taxes and investment tax credits

 

96

 

90

 

Equity earnings

 

(53)

 

(327)

 

Write-off of long-lived assets

 

-

 

132

 

Fixed-price contracts and other derivatives

 

14

 

(38)

 

Other

 

(6)

 

48

Net change in other working capital components

 

294

 

364

Distributions from RBS Sempra Commodities LLP

 

198

 

375

Changes in other assets

 

53

 

21

Changes in other liabilities

 

(19)

 

(26)

 

Net cash provided by operating activities

 

1,307

 

1,525

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

Expenditures for property, plant and equipment

 

(839)

 

(938)

Proceeds from sale of assets

 

-

 

179

Expenditures for investments and acquisition of businesses, net of cash acquired

 

(370)

 

(217)

Distributions from investments

 

36

 

9

Purchases of nuclear decommissioning and other trust assets

 

(159)

 

(99)

Proceeds from sales by nuclear decommissioning and other trusts

 

159

 

93

Other

 

6

 

(14)

 

Net cash used in investing activities

 

(1,167)

 

(987)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

Common dividends paid

 

(172)

 

(170)

Preferred dividends paid by subsidiaries

 

(5)

 

(5)

Issuances of common stock

 

22

 

28

Repurchases of common stock

 

(2)

 

-

Increase (decrease) in short-term debt, net

 

534

 

(612)

Issuances of debt (maturities greater than 90 days)

 

270

 

1,108

Payments on debt (maturities greater than 90 days)

 

(710)

 

(311)

Purchase of noncontrolling interest

 

-

 

(94)

Other

 

1

 

5

 

Net cash used in financing activities

 

(62)

 

(51)

 

 

 

 

 

 

Increase in cash and cash equivalents

 

78

 

487

Cash and cash equivalents, January 1

 

110

 

331

Cash and cash equivalents, June 30

 

$ 188

 

$ 818






SEMPRA ENERGY

Table D

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS UNIT EARNINGS AND CAPITAL EXPENDITURES & INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

(Dollars in millions)

2010 

 

2009 

 

2010 

 

2009 

 

 

 

(unaudited)

Earnings (Losses)

 

 

 

 

 

 

 

San Diego Gas & Electric

$ 75

 

$ 70

 

$ 158

 

$ 169

Southern California Gas

69

 

65

 

134

 

124

Sempra Generation

48

 

33

 

(5)

 

76

Sempra Pipelines & Storage

39

 

(27)

 

77

 

10

Sempra LNG

13

 

(12)

 

45

 

(19)

Parent & Other

(22)

 

(16)

 

(76)

 

(45)

Earnings before Sempra Commodities

222

 

113

 

333

 

315

Sempra Commodities

-

 

85

 

(5)

 

199

Earnings

$ 222

 

$ 198

 

$ 328

 

$ 514

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

(Dollars in millions)

2010 

 

2009 

 

2010 

 

2009 

 

 

 

(unaudited)

Capital Expenditures and Investments

 

 

 

 

 

 

 

San Diego Gas & Electric

$ 232

 

$ 366

 

$ 522

 

$ 595

Southern California Gas

102

 

115

 

216

 

227

Sempra Generation

1

 

10

 

5

 

13

Sempra Pipelines & Storage

350

 

227

 

460

 

328

Sempra LNG

2

 

71

 

4

 

142

Parent & Other

2

 

1

 

2

 

2

Eliminations(1)

-

 

(152)

 

-

 

(152)

Consolidated Capital Expenditures and Investments

$ 689

 

$ 638

 

$ 1,209

 

$ 1,155

 

 

 

 

 

 

 

 

 

 

(1)

In the second quarter of 2009, SDG&E purchased $152 industrial development bonds from Parent and Other.






SEMPRA ENERGY

 

 

 

Table E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER OPERATING STATISTICS (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

SEMPRA UTILITIES

2010 

 

2009 

 

2010 

 

2009 

Revenues (Dollars in millions)

 

 

 

 

 

 

 

 

SDG&E (excludes intercompany sales)

$ 688

 

$ 629

 

$ 1,429

 

$ 1,359

 

SoCalGas (excludes intercompany sales)

$ 824

 

$ 687

 

$ 1,995

 

$ 1,599

 

 

 

 

 

 

 

 

 

 

Gas Sales (bcf)

85

 

80

 

217

 

211

Transportation (bcf)

113

 

123

 

230

 

251

Total Deliveries (bcf)

198

 

203

 

447

 

462

Total Gas Customers (Thousands)

 

 

 

 

6,622

 

6,590

 

 

 

 

 

 

 

 

 

 

Electric Sales (Millions of kWhs)

3,763

 

3,968

 

7,818

 

8,132

Direct Access (Millions of kWhs)

764

 

750

 

1,484

 

1,490

Total Deliveries (Millions of kWhs)

4,527

 

4,718

 

9,302

 

9,622

Total Electric Customers (Thousands)

 

 

 

 

1,383

 

1,375

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA GENERATION

 

 

 

 

 

 

 

Power Sold (Millions of kWhs)

5,553

 

5,482

 

10,505

 

11,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SEMPRA PIPELINES & STORAGE

 

 

 

 

 

 

 

(Represents 100% of the distribution operations of these subsidiaries, although subsidiaries in Argentina, Chile and Peru are not 100% owned by Sempra Energy. These subsidiaries are not consolidated within Sempra Energy and the related investments are accounted for under the equity method).

Natural Gas Sales (bcf)

 

 

 

 

 

 

 

 

Argentina

83

 

83

 

147

 

148

 

Mexico

5

 

4

 

11

 

9

 

Mobile Gas

8

 

7

 

18

 

16

Natural Gas Customers (Thousands)

 

 

 

 

 

 

 

 

Argentina

 

 

 

 

1,731

 

1,693

 

Mexico

 

 

 

 

90

 

93

 

Mobile Gas

 

 

 

 

90

 

94

Electric Sales (Millions of kWhs)

 

 

 

 

 

 

 

 

Peru

1,483

 

1,380

 

2,962

 

2,773

 

Chile

570

 

593

 

1,170

 

1,270

Electric Customers (Thousands)

 

 

 

 

 

 

 

 

Peru

 

 

 

 

877

 

851

 

Chile

 

 

 

 

586

 

569






SEMPRA ENERGY

Table E (Continued)

 

 

 

 

 

 

 

 

 

 

SEMPRA COMMODITIES

The following information for the Sempra Commodities segment includes information related to RBS Sempra Commodities LLP. The Sempra Commodities segment is composed primarily of the company's equity interest in RBS Sempra Commodities LLP, but also includes the results of Sempra Rockies Marketing.  The margin and financial data below represent the total results of RBS Sempra Commodities LLP as calculated under International Financial Reporting Standards (IFRS).

 

 

 

 

 

 

 

 

 

 

RBS Sempra Commodities LLP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Statistics

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

RBS Sempra Commodities LLP - Joint Venture level margin(1)

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

Geographical:

 

 

 

 

 

 

 

 

 

North America

 

$ 180

 

$ 220

 

$ 292

 

$ 472

 

Europe/Asia

 

10

 

103

 

105

 

205

 

  Total

 

$ 190

 

$ 323

 

$ 397

 

$ 677

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

Oil - Crude & Products

 

$ 9

 

$ 70

 

$ (4)

 

$ 193

 

Power

 

160

 

94

 

265

 

187

 

Natural Gas

 

(44)

 

67

 

(11)

 

145

 

Metals

 

41

 

81

 

102

 

135

 

Other

 

24

 

11

 

45

 

17

 

  Total

 

$ 190

 

$ 323

 

$ 397

 

$ 677

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

(in millions of US dollars)

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

RBS Sempra Commodities LLP

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fee income and trading revenue, net of selling costs

 

$ 190

 

$ 323

 

$ 397

 

$ 677

Operating and other expenses

 

(163)

 

(181)

 

(371)

 

(381)

 

Joint Venture distributable income

 

$ 27

 

$ 142

 

$ 26

 

$ 296

 

 

 

 

 

 

 

 

 

 

Joint Venture Total:

 

 

 

 

 

 

 

 

 

Preferred return on capital

 

$ 26

 

$ 84

 

$ 26

 

$ 161

 

Reversal of Q1 2010 loss

 

1

 

-

 

-

 

-

 

1st allocation - 70% Sempra / 30% RBS

 

-

 

58

 

-

 

135

 

Distributable income

 

$ 27

 

$ 142

 

$ 26

 

$ 296

 

 

 

 

 

 

 

 

 

 

Sempra's Share(2):

 

 

 

 

 

 

 

 

 

Preferred return on capital

 

$ 26

 

$ 60

 

$ 26

 

$ 119

 

Reversal of Q1 2010 loss

 

1

 

-

 

-

 

-

 

1st allocation - 70% Sempra / 30% RBS

 

-

 

41

 

-

 

94

 

Certain allocated costs

 

5

 

1

 

5

 

3

 

Distributable income

 

$ 32

 

$ 102

 

$ 31

 

$ 216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sempra Commodities Earnings

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

(in millions of US dollars)

 

2010

 

2009

 

2010

 

2009

Sempra share of distributable income - IFRS basis

 

$ 32

 

$ 102

 

$ 31

 

$ 216

U.S. GAAP conversion impact

 

(48)

 

24

 

(40)

 

63

 

Sempra equity earnings (losses) before income taxes - U.S. GAAP basis

 

(16)

 

126

 

(9)

 

279

Income tax (expense) benefit

 

14

 

(39)

 

15

 

(76)

 

Sempra equity earnings (losses) from RBS Sempra Commodities LLP

 

(2)

 

87

 

6

 

203

Other segment activity

 

2

 

(2)

 

(11)

 

(4)

 

Sempra Commodities earnings (losses)

 

$ -

 

$ 85

 

$ (5)

 

$ 199

 

 

 

 

 

 

 

 

 

 

(1)

Margin consists of operating revenues less cost of sales (primarily transportation and storage costs) reduced by certain transaction-related execution costs (primarily brokerage and other fees) and net interest income/expense.

 

 

 

 

 

 

 

 

 

 

(2)

After a 15% preferred return to Sempra and then a 15% return to RBS, Sempra receives 70% of the next $500 million and 30% of any remaining income on an annual basis. Losses are shared equally between Sempra and RBS.