(Reuters) - Utility Sempra on Friday topped estimates for quarterly profit on strength in its energy infrastructure business, sending its shares up 2.3% in early trading.
Sempra infrastructure, the company's unit into building, operating and investing in the infrastructure critical for the clean energy transition, posted third-quarter earnings of $223 million, almost double of $114 million reported last year.
The segment got a boost from increasing global interest in lower emissions fuels, which have received a push under Biden's Inflation Reduction Act that provides incentives and credits for such projects.
Earnings in the Sempra Texas utilities unit rose about 19% to $305 million as the segment benefited from the heatwave that hit parts of the U.S., including its key operating region Texas.
Warmer and colder weather in service areas benefits utility companies as it increases the demand for gas and electricity.
20,000 new premises were added to the company's service territory during the quarter, Sempra said.
The San Diego, California-based company said it also expects to meet or surpass the high end of its full-year adjusted earnings per share (EPS) forecast range of $4.30 to $4.60.
"The directional raise is consistent with the upside we highlighted into the quarter and continues the beat and raise track record that Sempra has established over the past few years," J.P.Morgan analysts said in a note.
On an adjusted basis, U.S. power and gas utility Sempra reported per-share earnings of $1.08, beating analysts' estimates of $1.01 per share, according to LSEG.
(This story has been refiled to say Friday, not Thursday, in paragraph 1)