Southwest Gas Corp. trims losses
Local natural gas utility Southwest Gas Corp. narrowed its losses in a quarter that's usually slow for sales.
The company reported a net loss of $4.3 million, or 9 cents a share, in the quarter ended Sept. 30. That was an improvement from $15.6 million, or 34 cents a share, in the third quarter of 2011.
Revenue increased 5.4 percent to $371.8 million from $352.6 million.
The results bested analyst expectations, which Thomson Reuters pegged at a loss of 21 cents a share on revenue of $285.9 million.
President and CEO Jeffrey Shaw attributed the financial improvement mostly to a 7.7 percent rate increase that took effect on Jan. 1 in Arizona. The company also has focused on cost containment, and its NPL construction subsidiary, which contracts with other utilities to install, replace and maintain pipelines, had its second-best sales quarter ever, after 2011's third quarter.
Because the quarter includes the warm months of July, August and September, the period is typically a weak one for the utility's earnings.
The company also said it expects an $11.4 million annual income boost next year from a $1.80 a month increase in basic service charges that the Public Utilities Commission of Nevada recently approved.
Shares of Southwest Gas Corp. closed down 40 cents, or 0.96 percent, at $41.45 on the New York Stock Exchange.
Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512. Follow @J_Robison1 on Twitter.
