Sempra Energy: Company Profile and SWOT Analysis by ICDResearch

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									Sempra Energy

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Sempra Energy                                                                   Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                      101 Ash Street, San Diego, 92101,United   The company reported revenues of US$9,003.00
Headquarters Address
                                      States of America                         million during 2010, with a CAGR of -6.46% during
                                                                                2006–2010. Its revenue grew at an annual rate of
Telephone                             + 1 619 6962034
                                                                                11.07% over the previous fiscal year. In 2010, the
                                                                                company recorded an operating margin of 15.08%, as
Fax                                   + 1 619 6962374                           against 14.48% in 2009.

Website                               www.sempra.com
                                                                                Revenue and Margins
Ticker Symbol, Stock Exchange         SRE, New York Stock Exchange

Number of Employees                   13,504

Fiscal Year End                       December

Revenue (in US$ million)              9,003.00




SWOT Analysis

Strengths                             Weaknesses                                Return on Equity

Growth in top-line performance        Law Suits                                 The company recorded a return on equity (ROE) of
                                                                                8.21% for 2010, as compared to its peers, Dominion
                                                                                Resources, Inc. (Ticker: D), PG&E Corporation
Strong customer base                  Operational faults                        (Ticker: PCG) and MDU Resources Group, Inc.
                                                                                (Ticker: MDU), which recorded ROEs of 22.91%,
Strong inorganic growth               Overdependence on the US                  9.87% and 8.94% respectively. The company
                                                                                reported an operating margin of 15.08% in 2010.
Opportunities                         Threats
                                                                                Return on Equity
                                      Dependence on transmission and
Energy out-look of the US
                                      distribution facilities

Expansion of renewable energy         Environmental laws and regulations

Introduction of Metering Technology   Increasing fuel prices




                                                                                Liquidity Position

                                                                                The company reported a current ratio of 0.89 in 2010,
                                                                                as compared to its peers, Dominion Resources, Inc.,
                                                                                PG&E Corporation and MDU Resources Group, Inc.,
                                                                                which recorded current ratios of 0.94, 0.77 and 1.52
                                                                                respectively. As of December 2010, the company
                                                                                recorded cash and short-term investments of worth
                                                                                US$912.00 million, against US$349.00 million current
                                                                                debt. The company reported a debt to equity ratio of
                                                                                1.04 in 2010 as compared to its peers, Dominion
                                                                                Resources, Inc., PG&E Corporation and MDU
                                                                                Resources Group, Inc., which recorded debt to equity
                                                                                ratios of 1.44, 1.21 and 0.57 respectively.




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Sempra Energy - SWOT Profile                                                                                           Page 1
Sempra Energy

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................8
    2.2       Key Financial Performance Indicators .................................................................................................................11
      2.2.1       Revenue and Operating Profit .........................................................................................................................11
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................12
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................13
      2.2.4       Operational Efficiency ......................................................................................................................................14
      2.2.5       Solvency ..........................................................................................................................................................15
      2.2.6       Valuation ..........................................................................................................................................................16
    2.3       Competitive Benchmarking ..................................................................................................................................17
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ..........................................................................................................................................19
      2.3.4       Valuation ..........................................................................................................................................................20
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................21
      2.3.6       Liquidity ............................................................................................................................................................22
3     Mergers & Acquisitions and Partnerships ........................................................................................... 23
    3.1       M&A and Partnerships Strategy ...........................................................................................................................23
4     Recent Developments ........................................................................................................................... 25
5     SWOT Analysis ...................................................................................................................................... 27
    5.1       SWOT Analysis - Overview ..................................................................................................................................27
    5.2       Strengths ..............................................................................................................................................................27
    5.3       Weaknesses .........................................................................................................................................................27
    5.4  
								
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