Gas, Electricity Trades Lift Profit at Sempra

Sempra Energy, owner of the largest U.S. natural-gas utility, said first-quarter earnings more than doubled as it increased trading in gas and electricity.

Net income rose to $197 million, or 85 cents a share, from $88 million, or 42 cents, a year earlier, San Diego-based Sempra said. Analysts had expected 70 cents, according to a Thomson First Call survey. Sales jumped 26% to $2.4 billion from $1.9 billion in the quarter last year.

Energy trading profit rose to $59 million from $10 million a year earlier as it expanded sales to become the second-biggest seller of gas in North America, Sempra said.

Sempra Chairman and Chief Executive Stephen Baum, 63, has focused on expanding energy trading and building coastal terminals for importing liquefied natural gas.

Last week, Sempra said it planned to build a $600-million terminal in Port Arthur, Texas, starting in 2006, its third project to increase gas sales in the U.S. The terminal would begin operation in 2009.

Shares of Sempra rose 18 cents to $31.40 on the New York Stock Exchange.

Sempra this week sold its retail power marketer in Britain, Atlantic Electric, for $160 million, resulting in a loss of $24 million, or 10 cents a share. Excluding the loss, Sempra had a profit of $221 million, or 96 cents.