Southwest Gas reports second-quarter loss

Southwest Gas Corp. on Tuesday reported that it lost money in the second quarter, which is common because of low gas use during the summer.

The Las Vegas-based gas distribution company lost $337,000, or 1 cent per share, in the quarter ended June 30, compared with net income of a $3.7 million, or 9 cents per share, a year earlier. A property tax settlement in Arizona last year added 7 cents to earnings.

Excluding the tax recovery last year, quarterly results declined slightly because of a decrease in the company's construction services segment, which reported record earnings in the period last year, CEO Jeffrey Shaw said in a statement.

During the last 12 months, Southwest Gas customer numbers grew by 3 percent or 57,000.

"The torrid customer growth levels experienced in recent years have moderated," Shaw said. "We anticipate the moderate growth level will continue throughout the second half of 2007."

The company declined to disclose the rate of growth or number of new customers for Southern Nevada. Southwest Gas also serves areas of Northern Nevada, Arizona and California.

Operating margin -- operating revenues less the cost of gas sold -- rose by $6.5 million or 5 percent compared with last year's second quarter. California rate increases added $3 million to operating margin.

Operating expenses for the quarter climbed by $13 million or 11 percent from a year ago, mainly because of general cost increases and costs associated with additional customers.

During the first half, Southwest Gas reported $49.4 million in net income or $1.16 per share, compared with $47.9 million or $1.19 a share a year ago.

Southwest Gas shares rose 20 cents, or 0.67 percent, Monday to close at $30.05 on the New York Stock Exchange. Southwest Gas released the earnings after the market closed.