Sempra Energy Posts Jump in Profit (Updated)

Updated from 11:42 a.m. EDT

Sempra Energy(SRE Quote) saw a 30% boost in first-quarter earnings, buoyed by the lower cost of natural gases.

Shares of the company were down 2% to $47.31 in afternoon trading.

During the quarter, income reached $316 million, or $1.29 a share, from $242 million, or 92 cents in the year-ago period. Analysts expected earnings of $1.03 a share.

While many utilities companies have missed earnings guidance due to customers cutting back on gas and electricity usage, Sempra CFO Mark Snell explained that his company has been able to avoid a downturn because it is decoupled -- meaning it doesn't profit or lose from the amount of electricity and gas used. "We encourage conservation and get rewarded for it, so we are better able to weather the downturn then other companies in the industry."

Expenses for natural gas fell to $540 million from $1.2 billion.

Earnings at its subsidiary, San Diego Gas & Electric, rose to $99 million from $74 million after the effects of a positive rate ruling. RBS Sempra Commodities earnings increased to $114 million, while Sempra LNG reported a loss of $7 million, compared with a loss of $9 million last year.

The company reaffirmed its full-year outlook in the range of $4.35 to $4.60 per share.

TheStreet.com upgraded the stock on Tuesday to buy from hold, based on Sempra's solvency, return on equity, and its net income and EPS growth.

Separately, RBS Sempra appointed on Tuesday ex-Lehman Brothers executive Kaushik Amin as its new chief executive officer.