UPDATE 1-Sempra boosts capex by 20% as California, Texas drive power demand
(Adds details about capital plan in paragraphs 1-5)
Feb 27 (Reuters) - U.S. electric utility Sempra on Tuesday raised its five-year capital expenditures plan by 20% to $48 billion, as power demand growth in Texas and California spurs investments.
Transmission and distribution dominates San Diego, California-based Sempra's projected spending, which focused on integrating renewable energy, battery storage and supporting electric vehicles.
The electrification of oil and gas production in Texas loomed large in Sempra's growth plans.
"West Texas continues to be a very strong story for us with," said Allen Nye, who heads Sempra's Texas utility, Oncor Electric Delivery.
Nye cited a recent preliminary study by the Texas grid operator projecting four-fold electricity consumption growth in the western part of the state to 26 gigawatts within 15 years, driven by the electrification of the oil and gas industry.
Sempra Infrastructure, the company's unit that develops, invests and operates clean energy infrastructure, reported quarterly earnings of $131 million, compared with a loss of $82 million from the previous year.
The segment is expected to benefit from U.S. President Joe Biden's climate strategy, which has pledged to halve greenhouse gas emissions by 2030.
Sempra, which provides gas, electricity and other energy to nearly 40 million customers in areas including California, Texas, Mexico, narrowly beat fourth-quarter profit estimates, helped by higher earnings from its clean energy technology segment.
The company reported an adjusted profit of $1.13 per share for the quarter ended Dec. 31, compared with analysts' average estimates of $1.12 per share, according to LSEG data.
Sempra forecast its 2024 earnings to between $4.60 and $4.90 per share from its previous forecast of between $4.55 and $4.90 per share.
The company reported a revenue of $3.49 billion for the quarter ended Dec. 31, a 1% rise from the previous year, missing analysts' average estimate of $3.87 billion, according to LSEG data. (Reporting by Laila Kearney in New York and Tanay Dhumal in Bengaluru; Editing by Vijay Kishore and Marguerita Choy)
