(RTTNews) - Utility company Sempra Energy (SRE: News ), on Monday reported a rise in profit for the third quarter, helped by gains from its joint-venture commodities trading business RBS Sempra, notwithstanding a sharp decline in revenues from last year. Earnings came in well ahead of Street estimates, while revenues fell short of expectations.

The San Diego, California-based company's earnings for the third quarter increased to $317 million or $1.27 per share from $308 million or $1.24 per share in the year ago quarter.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $1.19 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

In the sequentially preceding quarter, Sempra reported earnings of $198 million or $0.80 per share, down 19% from $244 million or $0.98 per share in the prior-year quarter. Results for 2008 quarter included $33 million in earnings from the retroactive application of SDG&E's rate case, approved in July 2008.

Among subsidiaries, San Diego Gas & Electric's earnings for the recent third quarter dropped to $108 million from last year, while Southern California Gas Co. reported earnings of $74 million, down from the year ago quarter.

At RBS Sempra Commodities, earnings for the quarter were $75 million, compared to a loss of $8 million a year earlier, owing to improved performance in natural gas marketing.

Sempra Generation's earnings for the quarter declined to $43 million from the year earlier quarter, while earnings for Sempra Pipelines & Storage increased to $54 million from last year, mainly due to lower income taxes and increased contributions from the Rockies Express pipeline. Sempra LNG had a break-even third quarter 2009, compared with earnings of $4 million in the prior-year's quarter.
Revenues for the recent third quarter slipped to $1.85 billion from $2.69 billion last year. Street analysts' revenue estimate was $2.16 billion for the quarter.

Segment wise, Sempra Utilities revenues for the quarter dropped significantly to $1.42 billion from $2.01 billion in the corresponding quarter last year, while revenues of Sempra Global and parent decreased to $429 million from $679 million in the same quarter last year.

For the preceding second quarter, Sempra reported revenues that declined 32% to $1.69 billion from $2.50 billion a year ago.

Last week, Royal Bank of Scotland Group Plc (RBS: News ,RBS.L: News ), announced its intention to divest several of its assets, including its 51% stake in the RBS Sempra Commodities joint venture. Sempra said its agreement with RBS requires the bank to maintain its ownership of the joint venture through April 2012.

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