Sempra Records Charge of $139 Million for Write-Down of RBS Sempra Commodities

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November 10, 2010

Sempra Energy's commodity operations recorded a loss of $134 million in the third quarter of 2010, compared with earnings of $75 million in the third quarter of 2009.

Third-quarter 2010 results included a $139 million charge for the write-down of Sempra Energy's investment in the RBS Sempra Commodities joint venture.

Equity earnings from RBS Sempra Commodities for the quarter were $18 million in 2010 compared to $75 million in 2009, due to the absence of earnings from international product lines divested since last year, as well as lower volatility in the U.S. gas and power markets.

Sempra has closed the majority of transactions to exit the commodities business, with the sale of the wholesale U.S. power and gas business and other remaining contracts to J.P. Morgan Ventures still pending.

In the third quarter of 2010, Sempra Generation's earnings rose to $56 million from $43 million in the third quarter of 2009, due primarily to renewable energy tax credits from investment in Copper Mountain Solar, the company's new solar energy project in Nevada.

The Generation segment also benefited from mark to market gains which were offset by $9 million of lower earnings from the operations of its natural gas fired power plants

   
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