Business Analysis of Sempra Energy

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Sempra Energy

SEMPRA ENERGY

Business Overview

Sempra Energy, together with its subsidiaries, engages in energy business worldwide. The company's San Diego Gas & Electric Company segment transmits and distributes electricity and/or natural gas. As of December 31, 2016, this segment had approximately 1.4 million electric meters and 878,000 natural gas meters. Its Southern California Gas Company segment purchases, transports, sells, distributes, and stores natural gas. As of December 31, 2015, this segment had approximately 5.9 million customer meters. The company's Sempra South American Utilities segment provides electricity distribution services through 10,118 miles of distribution lines, 352 miles of transmission lines, and 48 substations located in the region of Valparaiso in central Chile, as well as through 13,763 miles of distribution lines, 194 miles of transmission lines, and 39 substations located in the Cusco region of Peru. Its Sempra Mexico segment owns, develops, and operates natural gas pipelines, ethane systems, and a liquid petroleum gas pipeline and associated storage terminals; electric generation facilities; natural gas distribution systems; and liquefied natural gas (LNG) regasification terminals. The company's Sempra Renewables segment is involved in the investment and development of wind and solar power generation facilities. Its Sempra LNG & Midstream segment invests in and develops LNG-related infrastructure in North America; develops and operates natural gas storage facilities in Alabama and Mississippi; and owns a liquefaction project in Louisiana. The company primarily serves residential, commercial, and industrial customers. Sempra Energy was founded in 1998 and is headquartered in San Diego, California.

Sempra Energy

Sempra Energy


R&P Rank: 289
Sector: Utilities
Industry:Gas, Water, & Multiutilities
H.Q Location:California
Website: www.sempra.com
Company Address:
488 8TH AVENUE, P O BOX 129400, SAN DIEGO CA 92101
Ph:619-696-2000

Business Analysis of Sempra Energy

The Utilities Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Sempra Energy compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Sempra Energy to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Sempra Energy with an interactive chart.

  1. Revenue Growth: Sempra Energy reported a revenue growth of -0.5% year-on-year during 2016. Gas, Water, & Multiutilities Industry grew at -0.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Sempra Energy spent 67.0% of its total revenues on COGS. Gas, Water, & Multiutilities industry average (COGS share of revenue) in the same period was 63.9%
  3. R&D share of Revenues: Sempra Energy R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: Sempra Energy SG&A share of Revenues details are not available because either company does not share the data or we do not have it
  5. Inventory share of Revenues: As a percentage of revenue, Sempra Energy spent 2.5% of its total revenues on Inventories. Gas, Water, & Multiutilities industry average Inventory spending in the same period was 7.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Sempra Energy invested 17.7% of its total revenues on Accounts Payable (A/P) Gas, Water, & Multiutilities industry average Accounts Payable investment in the same period was 11.4%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Sempra Energy invested 17.5% of its total revenues on Accounts Receivable (A/R). Gas, Water, & Multiutilities industry average Accounts Receivable investment in the same period was 15.4%
  8. PP&E share of Revenues: As a percentage of revenue, Sempra Energy invested 323.4% of its total revenues on Property, Plants, and Equipments (PP&E). Gas, Water, & Multiutilities industry average PPE investment in the same period was 281.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Sempra Energy invested 28.6% of its total revenues on Intangibles. Gas, Water, & Multiutilities industry average Intangibles investment in the same period was 23.2%
  10. Net Margins: Sempra Energy Net Margins in the year 2016 were 13.5%. Gas, Water, & Multiutilities industry average Net Margins in the same period were 8.6%

Sector and Industry Association of Sempra Energy

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Sempra Energy is associated with Utilities Sector and Gas, Water, & Multiutilities Industry.

Utilities sector is comprised of the following industries: Electric Utilities; Gas, Water, & Multiutlities. The definitions for each of the industries is as follows:

  • Electric Utilities industry includes companies engaged in generation, transmission, and/or distribution of electric energy for sale.
  • Gas, Water, & Multiutlities industry includes companies engaged in transmission and/or storage of natural gas for sale and those engaged in distributing water for sale for domestic, commercial, and industrial use. It also includes companies with significant presence in more than one utility.

Industry Ranking of Sempra Energy

With $10.2 billion revenues, Sempra Energy ranked number 6 of all the companies in the US Gas, Water, & Multiutilities industry. There were a total of 47 public companies in the US Gas, Water, & Multiutilities industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Gas, Water, & Multiutilities industry by revenues during 2016 were:

  1. Exelon ($31.4 billion)
  2. Duke Energy ($22.7 billion)
  3. PG&E ($17.7 billion)
  4. Consolidated Edison ($12.1 billion)
  5. Xcel Energy ($11.1 billion)
  6. Sempra Energy ($10.2 billion)
  7. Public Service Enterprise Group ($9.1 billion)
  8. WEC Energy Group ($7.5 billion)
  9. CMS Energy ($6.4 billion)
  10. Ameren ($6.1 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Sempra Energyand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of sempra-energy

PG&E (PCG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

PG&E Corp with $18 billion revenues in the year 2016 was the number 3 Gas, Water, & Multiutilities company. Read this report to know the top competitors of PG&E and identify growth and cost optimization opportunities of PG&E

Consolidated Edison (ED) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Consolidated Edison Inc with $12 billion revenues in the year 2016 was the number 4 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Consolidated Edison and identify growth and cost optimization opportunities of Consolidated Edison

Xcel Energy (XEL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Xcel Energy Inc with $11 billion revenues in the year 2016 was the number 5 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Xcel Energy and identify growth and cost optimization opportunities of Xcel Energy

Public Service Enterprise Group (PEG) Business Analysis – Analyze Historical Performance,...

Public Service Enterprise Group Inc with $9 billion revenues in the year 2016 was the number 7 Gas, Water, & Multiutilities company. Read this report to know the top competitors of Public Service Enterprise Group and identify growth and cost optimization opportunities of Public Service Enterprise Group

WEC Energy Group (WEC) Business Analysis – Analyze Historical Performance, Strategic...

WEC Energy Group, Inc. with $7 billion revenues in the year 2016 was the number 8 Gas, Water, & Multiutilities company. Read this report to know the top competitors of WEC Energy Group and identify growth and cost optimization opportunities of WEC Energy Group

CMS Energy (CMS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

CMS Energy Corp with $6 billion revenues in the year 2016 was the number 9 Gas, Water, & Multiutilities company. Read this report to know the top competitors of CMS Energy and identify growth and cost optimization opportunities of CMS Energy

Revenues Analysis

Sempra Energy (SRE) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Sempra Energy (SRE) from 2012 to 2016. Sempra Energy generated a total of $10.2 billion revenues during 2016. Sempra Energy reported a revenue growth of -0.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sempra Energy (SRE) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Sempra Energy (SRE) from 2002 to 2016. Sempra Energy generated a total of $10.2 billion revenues during 2016. Sempra Energy reported a revenue growth of -0.5% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Sempra Energy (SRE) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Sempra Energy (SRE) revenue growth with Gas, Water, & Multiutilities industry growth during the last five years from 2012 to 2016. Sempra Energy reported a revenue growth of -0.5% year-over-year during 2016. The Gas, Water, & Multiutilities industry growth was -0.4% year-over-year during 2016. Sempra Energy growth was slower than the industry during 2016.

Profit Analysis

Sempra Energy (SRE) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Sempra Energy (SRE) from 2012 to 2016. Sempra Energy reported a total net income of $1.4 billion during 2016. Sempra Energy generated a total of $10.2 billion revenues during 2016. Sempra Energy net profit margin was 13.5% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.