Sempra Energy has reported a net income of $1.11 billion, or $4.43 per diluted share, for the year-end 2008, compared with the net income of $1.10 billion, or $4.16 per diluted share, in the previous year. It also reported a net income of $319 million, or $1.30 per diluted share, for the fourth quarter of 2008, compared with the net income of $289 million, or $1.10 per diluted share, in the year-ago quarter.

“Despite the challenging economic environment, our businesses have excelled and we’ve achieved major milestones in our long-term strategy,” said Donald E. Felsinger, chairman and chief executive officer of Sempra Energy. “We launched operations at our Mexican liquefied natural gas terminal, completed our commodities joint venture and added new Gulf Coast natural gas assets with the acquisition of EnergySouth. We also received state regulatory approval on San Diego Gas & Electric’s Sunrise Powerlink transmission line and both of our utilities’ rate cases. Additionally, we completed a $1 billion share-repurchase program, increased our dividend and maintained a strong balance sheet.”

Subsidiary Operating Results

San Diego Gas & Electric

San Diego Gas & Electric (SDG&E) recorded net income of $339 million in 2008, up from $283 million in 2007. SDG&E’s fourth-quarter 2008 net income was $81 million, compared with $47 million in the year-ago quarter, due primarily to higher operating margin and a lower tax rate.

In December 2008, the California public utilities commission approved SDG&E’s application to build the $1.9 billion, 500-kilovolt Sunrise Powerlink transmission-line project. Pre-construction activities on the project have begun, with completion of the power line expected in 2012.

“After three years of thorough regulatory review, we are pleased that the Sunrise Powerlink project is moving forward,” said Felsinger. “California policymakers have set aggressive environmental goals for the state’s utilities, mandating a significant increase in renewable energy and reduction in greenhouse-gas emissions over the next decade. The Sunrise Powerlink will help SDG&E meet these environmental mandates, while increasing system reliability.”

Southern California Gas Co:

In 2008, Southern California Gas Co. (SoCalGas) net income increased to $244 million from $230 million. Fourth-quarter net income for SoCalGas was $54 million in 2008, compared with $58 million in 2007.

RBS Sempra Commodities:

Sempra Energy generated net income of $345 million from its commodity operations in the full-year 2008, including nine months of net income from its equity share of the RBS Sempra Commodities joint venture, and $164 million in the fourth quarter 2008. In 2007, Sempra Energy Commodities earned $499 million in net income and $186 million in fourth-quarter net income. Results for 2007 represented 100% of the earnings from the commodities-marketing business prior to the formation of RBS Sempra Commodities. In the fourth quarter 2008, RBS Sempra Commodities performed well in all of its major product segments, led by crude oil and petroleum products.

Sempra Generation

Sempra Generation’s net income rose to $222 million in 2008 from $162 million in 2007. In the fourth quarter 2008, Sempra Generation’s net income increased to $60 million from $40 million in the same quarter of 2007, due primarily to lower income-tax expense.

In December 2008, Sempra Generation completed its first solar-power project. The 10-megawatt facility, located outside of Las Vegas, is the largest thin-film solar generating plant in North America.

Sempra Pipelines & Storage

Sempra Pipelines & Storage earned $106 million in 2008 net income, up from $64 million in 2007. In the fourth quarter 2008, Sempra Pipelines & Storage had net income of $22 million, compared with $14 million in the prior year’s quarter, due primarily to the operation of the western portion of the Rockies Express Pipeline and the company’s Mexico pipelines.

Sempra LNG

In 2008, Sempra LNG recorded a net loss of $46 million, unchanged from 2007. For the fourth quarter 2008, Sempra LNG had a net loss of $13 million, compared with a net loss of $19 million in the same period of 2007, due primarily to a tax benefit related to currency and inflation adjustments.

2009 Outlook

Sempra Energy reaffirmed its previous earnings-per-share outlook for 2009 of a range of $4.35 per share to $4.60 per share.