Sempra Energy (SRE) has reported a 24.93 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $441 million, or $1.75 a share in the quarter, compared with $353 million, or $1.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $438 million, or $1.74 a share compared with $404 million or $1.60 a share, a year ago. Revenue during the quarter grew 15.60 percent to $3,031 million from $2,622 million in the previous year period. Gross margin for the quarter contracted 135 basis points over the previous year period to 63.68 percent. Total expenses were 75.39 percent of quarterly revenues, down from 78.45 percent for the same period last year. This has led to an improvement of 306 basis points in operating margin to 24.61 percent.
Operating income for the quarter was $746 million, compared with $565 million in the previous year period.
"Our strong first-quarter results keep us on track to meet our 2017 earnings guidance," said Debra L. Reed, chairman, president and chief executive officer of Sempra Energy. "As we outlined at our analyst conference last month, we are executing on our strategic plan to grow our earnings at about twice the average rate of our utility peers from 2017 through 2021."
For fiscal year 2017, Sempra Energy expects diluted earnings per share to be in the range of $4.85 to $5.25.
Operating cash flow improves significantly
Sempra Energy has generated cash of $1,004 million from operating activities during the quarter, up 60.38 percent or $378 million, when compared with the last year period. The company has spent $1,026 million cash to meet investing activities during the quarter as against cash outgo of $989 million in the last year period.
The company has spent $46 million cash to carry out financing activities during the quarter as against cash inflow of $330 million in the last year period.
Cash and cash equivalents stood at $290 million as on Mar. 31, 2017, down 22.87 percent or $86 million from $376 million on Mar. 31, 2016.
Working capital remains negative
Working capital of Sempra Energy was negative $2,859 million on Mar. 31, 2017 compared with negative $2,249 million on Mar. 31, 2016. Current ratio was at 0.51 as on Mar. 31, 2017, down from 0.56 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 54 days for the quarter from 74 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 49 days for the same period last year.
Days inventory outstanding has decreased to 9 days for the quarter compared with 26 days for the previous year period. At the same time, days payable outstanding went down to 108 days for the quarter from 149 for the same period last year.
Debt moves up
Sempra Energy has witnessed an increase in total debt over the last one year. It stood at $17,302 million as on Mar. 31, 2017, up 13.69 percent or $2,084 million from $15,218 million on Mar. 31, 2016. Total debt was 35.83 percent of total assets as on Mar. 31, 2017, compared with 36.38 percent on Mar. 31, 2016. Debt to equity ratio was at 1.11 as on Mar. 31, 2017, down from 1.20 as on Mar. 31, 2016. Interest coverage ratio improved to 4.41 for the quarter from 3.95 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
