Loading...
•
Jun 30, 2020
Southwest Gas Q2 2020 Earnings Report
Announced second quarter earnings increase of $0.27 per share compared to Q2 2019.
Key Takeaways
Southwest Gas Holdings reported consolidated earnings of $0.68 per diluted share for the second quarter of 2020, a $0.27 increase from $0.41 per diluted share for the second quarter of 2019. Consolidated net income was $38 million for the second quarter of 2020, compared to $22.1 million for the second quarter of 2019.
Consolidated earnings per share increased by $0.27 compared to the second quarter of 2019.
Natural gas segment contributed net income of $11.9 million, compared to $3.4 million for the same period last year.
Utility infrastructure services segment had net income of $26.3 million, compared to $18.9 million for the second quarter of 2019.
Operating income for both segments improved over the prior year.
Southwest Gas
Southwest Gas
Southwest Gas Revenue by Segment
Revenue by Segment
Natural Gas Distribution Revenue
CapyFin.com Forward Guidance
Management affirms estimated 2020 diluted earnings per share between $3.75 and $4.00.
Positive Outlook
- Operating margin for 2020 is anticipated to benefit from customer growth of 1.6%.
- Infrastructure tracker mechanisms are expected to contribute to operating margin.
- Expansion projects are expected to increase operating margin.
- Rate relief is expected to increase operating margin.
- Centuri’s revenues for 2020 are expected to be 2% to 7% greater than 2019.
Challenges Ahead
- Governmental policies and economic challenges associated with COVID-19 may influence operating results.
- The timing of processing unsettled utility general rate case applications may impact results.
- Utility customer growth rates and employment statistics could influence results.
- Operations and maintenance expense changes may affect the outlook.
- The timing of the release of Centuri project orders from its utility customers could impact results.