Southwest Gas revenues decline in fourth quarter
Warm weather helped curb fourth-quarter earnings for local natural-gas utility Southwest Gas Corp., the company said in a Monday statement.
The company's net income was $44.9 million, or 99 cents a share, in the quarter ended Dec. 31, compared with $46.4 million, or $1.03 a share, a year earlier.
The earnings matched analysts' estimates of 99 cents a share, according to First Call/Thomson Financial.
Quarterly revenue also slumped, falling 6.2 percent to $468.1 million from $498.8 million.
Though Southwest Gas earned $3 million more in the quarter thanks to higher rates, including $2 million in new revenue in Nevada, the company also saw a $9 million decline in operating margins, as Arizona posted one of its warmest Decembers on record in 2010.
Operating expenses in the quarter rose $4.7 million, or 3 percent, year over year mostly because of higher employee-benefit costs and increased depreciation expenses.
For the year ended Dec. 31, Southwest Gas made $103.9 million, or $2.29 a share, on $1.8 billion in revenue. That's up from net income of $87.5 million, or $1.95 a share, on $1.9 billion in revenue in 2009.
"Our liquidity has remained strong throughout these challenging economic times, and our improved earnings and cash flows have helped to strengthen our financial position," said Chief Executive Officer Jeffrey Shaw in a statement.
Southwest Gas shares fell 6 cents, or 0.15 percent, Monday to close at $38.87 on the New York Stock Exchange.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.
