Oil & Gas - Mexico

Chilquinta, Luz del Sur boost Sempra's 1Q12 earnings by US$18mn

Chilquinta, Luz del Sur boost Sempra's 1Q12 earnings by US$18mn

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San Diego-based energy company Sempra (NYSE: SRE) saw profits from its South American power distribution subsidiaries Chilquinta Energía in Chile and Luz del Sur in Peru reach US$40mn in 1Q12, up 82% year-on-year, Sempra CFO Joseph Householder said in the company's quarterly earnings webcast.

Householder attributed the increase to the April 2011 acquisition of controlling interests in the two companies.

The company acquired US firm AEI's stakes in Chilquinta and Luz del Sur for US$490mn and US$385mn, respectively, and now controls 100% and 76%.

MEXICO

Sempra's earnings from Mexican operations were US$37mn in the first quarter, down by US$2mn year-on-year. Householder did not provide a reason for the decline.

The company's Mexican assets include the Costa Azul LNG regasification plant in Baja California state, a power generation plant, natural gas and propane pipelines, and a natural gas distribution company.

Sempra's companywide earnings in 1Q12 were US$236mn, down from US$254mn.