San Diego Gas & Electric Company (SRE) has reported 2.71 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $379 million, or $1.51 a share in the quarter, compared with $369 million, or $1.47 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $383 million, or $1.52 a share compared with $367 million or $1.46 a share, a year ago.
Revenue during the quarter grew 6.26 percent to $2,870 million from $2,701 million in the previous year period. Gross margin for the quarter expanded 148 basis points over the previous year period to 66.34 percent. Total expenses were 78.05 percent of quarterly revenues, down from 78.86 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 21.95 percent.
"In 2016, we met our key financial targets and executed well on our strategic plan, positioning ourselves for strong performance in 2017 and enabling us to raise our 2017 earnings guidance," said Debra L. Reed, chairman and chief executive officer of Sempra Energy. “In the past year, we received regulatory approval of our California utilities’ General Rate Case, so they have more revenue certainty through 2018. Our utilities also received regulatory approval to proceed with several major reliability projects. Additionally, in 2016, our Mexican subsidiary, IEnova, completed a successful $1.6 billion equity offering to raise capital and we completed the divestiture of several non-strategic assets."
For financial year 2017, the company projects diluted earnings per share to be in the range of $4.85 to $5.25.
Operating cash flow declinesSan Diego Gas & Electric has generated cash of $2,319 million from operating activities during the year, down 20.17 percent or $586 million, when compared with the last year. The company has spent $4,886 million cash to meet investing activities during the year as against cash outgo of $2,885 million in the last year. It has incurred net capital expenditure of $5,033 million on net basis during the year, up 68.72 percent or $2,050 million from year ago.
Cash flow from financing activities was $2,513 million for the year as against cash outgo of $173 million in the last year period.
Cash and cash equivalents stood at $349 million as on Dec. 31, 2016, down 13.40 percent or $54 million from $403 million on Dec. 31, 2015.
Debt moves up
San Diego Gas & Electric has witnessed an increase in total debt over the last one year. It stood at $17,121 million as on Dec. 31, 2016, up 16.76 percent or $2,458 million from $14,663 million on Dec. 31, 2015. Interest coverage ratio improved to 4.77 for the quarter from 3.94 for the same period last year.
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