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Sempra Energy
Sempra Energy

Energy / Energy Infrastructure and Services


Risks
1. Price volatility: Sempra Energy’s energy trading business is affected by volatile energy prices, which can significantly reduce profits in short periods of time.

2. Regulatory risk: Sempra Energy’s energy trading business comes with regulatory risks in the form of newly implemented regulations, penalties, or laws that could affect Sempra Energy’s ability to operate its energy trading business.

3. Counterparty risk: When conducting trading deals, Sempra Energy takes on the risk of its counterparties not being able to fulfill their contractual obligations.

4. Credit risk: With energy trading, there is always the risk of being exposed to non-payment or default from counterparties.

5. Market liquidity risk: Energy trading markets may become illiquid in certain periods, making it difficult to enter and exit positions, causing a loss in value.

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