Southwest Gas Corp. reports record earnings per share for ’12

Local natural-gas utility Southwest Gas Corp. said Tuesday that it improved its financial results in the fourth quarter and posted record earnings per share in 2012.

The company reported net income of $62.4 million, or $1.35 a share, in the quarter ended Dec. 31, up from
$55.3 million, or $1.20 a share, a year earlier.

Quarterly revenue dipped 5.6 percent to $488.6 million from $517.7 million.

For 2012, Southwest Gas had net income of $133.3 million, or a record $2.89 a share, compared with $112.3 million, or $2.45 per share, in 2011. Revenue was $1.93 billion in 2012, up 2.1 percent from $1.89 billion in 2011.

The company’s operating margin, or its operating revenue minus the cost of gas sold, increased $52 million in 2012.

Company officials credited the results to higher rates, customer growth and strong business in a construction subsidiary that contracts with other utilities to install, replace and maintain pipelines. Higher rates in Arizona added $45 million to 2012’s operating margin, while increased rates in Nevada contributed $2 million. An additional $5 million came from 17,000 new customers in Nevada, Arizona and California. Southwest Gas said it now serves nearly 1.9 million customers in the three states.

The company has scheduled a conference call at 1 p.m. today to discuss its earnings. To listen in, visit www.swgas.com and go to the “Investor Relations” page .

Contact reporter Jennifer Robison at
jrobison@reviewjournal.com or 702-380-4512.
Follow @J_Robison1 on Twitter.